OAK CREEK, Wis. — Zund America Inc., a Swiss company based out of Oak Creek and best known for its digital cutting products and services, is expected to pay more than $2.3M for allegedly violating the False Claims Act by submitting PPP Loan claims it was ultimately intelligible for.
Bạn đang xem: Oak Creek company owes $2.3M settlement over false PPP loans
According to the U.S. Attorney’s Office for the Eastern District of Wisconsin, Zund America submitted for a ‘second-draw PPP loan’ in February 2021. It was ultimately intelligible for this loan because the company has more than 300 employees.
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The United States Congress established Paycheck Protection Program (PPP) Loans in March 2020 to help provide emergency financial assistance for businesses struggling during the pandemic. It was expected that the Small Business Administration (SBA) would repay the loan if it was spent on what were deemed “qualifying expenses.”
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“Congress created the PPP to help small businesses and their employees survive the COVID-19 pandemic,” U.S. Attorney, Gregory Haanstad stated. “To make funds available as quickly as possible and save jobs, Congress and the SBA trusted companies to certify that they complied with the eligibility rules.
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“Unfortunately, Zund America did not fulfill its obligations and instead submitted false information to obtain its second-draw loan. This settlement requires Zund America to repay the SBA plus a substantial penalty.”
The investigation was sparked by a whistleblower complaint filed via the False Claims Act, the U.S. Attorney’s Office for Eastern Wisconsin specified. They said that the whistleblower shall receive a share of the settlement.
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