SBA Accused of Misleading Public on Disaster Loan Fraud

Weekly Newsletter | September 11, 2020 | Subscribe

COVID-19 Related Fraud

----------------------------------------------------------------------------------- Attorney took $9M meant to help small businesses hurt by COVID-19, authorities say A Bergen County-based attorney was arrested Thursday after he was accused of fraudulently getting $9 million in loans meant to help small businesses during the COVID-19 pandemic. He submitted three fake Paycheck Protection Program (PPP) loans to three different lenders on behalf of three different businesses he said he owned and allegedly lied about the existence of hundreds of employees that worked there, manipulated bank and tax records and falsified a driver’s license on the applications.

Dept. of Justice: U.S. Attorney Announces Partnership with Special Inspector General for Pandemic Recovery The U.S. Attorney’s Office for the Northern District of Texas announced a partnership with the Office of the Special Inspector General for Pandemic Recovery (SIGPR) to investigate and prosecute fraud in the distribution of the massive relief package authorized by the CARES Act.

Politico: Oversight group says SBA misled public on disaster loan fraud A government watchdog group reported that the SBA misled the public about its ability to prevent fraud in a disaster business loan program. The Project on Government Oversight (POGO) claimed, citing internal emails, that SBA was scrambling through mid-August to clamp down on fraudulent loans from the Economic Injury Disaster Loan (EIDL) program.

Case Settlements & Opinions


Dept. of Justice: West Virginia Hospital Agrees to Pay $50 Million To Settle Allegations Concerning Improper Compensation to Referring Physicians Wheeling Hospital Inc., an acute care hospital located in Wheeling, West Virginia, has agreed to pay the United States a total of $50,000,000 to resolve claims that it violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute.

Dept. of Justice: William M. Kelly, M.D., Inc And Omega Imaging, Inc. Agree To Pay $5 Million To Resolve Alleged False Claims For Unsupervised And Unaccredited Radiology Services William M. Kelly Inc. and Omega Imaging Inc. have agreed to pay the United States $5 million to resolve allegations that they violated the False Claims Act by knowingly submitting claims to Medicare and the military healthcare program, TRICARE, for unsupervised radiology services and services provided at unaccredited facilities.

Dept. of Justice: Asphalt Contractor to Pay $4.25 Million To Settle Claims That It Misled the Government as To The Materials Used To Pave Road Dave O’Mara Contractor Inc. (DOCI), an Indiana-based asphalt contractor, has agreed to resolve allegations that it violated the False Claims Act by misrepresenting to the government the materials that it was using to pave federally-funded roads in the state of Indiana. DOCI has agreed to pay over $4.25 million over a period of four years.

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