In what has been shaped up as a calculated financial misstep, Austin-based Freedom Solar LLC has agreed to cough up $425,710 to settle allegations that it hoodwinked the federal government. The solar power installer, known for putting up solar panels on homes and businesses, reportedly played fast and loose with figures when they grabbed a Paycheck Protection Program (PPP) loan during 2020's pandemic-induced economic anxiety.
The PPP loans were designed as a lifeline, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act aimed at keeping small businesses afloat amidst the COVID-19 turmoil. However, the cap for these forgivable loans was clearly set at 2.5 times a company's average monthly payroll, with earnings over $100,000 per employee not meant to be included in the calculations. Freedom Solar was accused of failing to justly cap several employees' salaries when crunching these crucial numbers, allowing them to not only snag more money than their fair share but also to secure complete forgiveness of the loan later on.
The hefty repayment settles a whistleblower lawsuit, as noted in a release from the U.S. Attorney's Office for the Western District of Texas, declaring Freedom Solar's agreement to pay out without admitting any actual wrongdoing—the usual legalese indicating that while they're forking over the cash, they're not technically owning up to any foul play. This lawsuit, formally known as United States ex rel. Mossburg v. Freedom Solar, LLC, et al., was lodged under the False Claims Act's qui tam provision, which interestingly allows individuals to sue on behalf of the government and potentially share in the restitution.
This financial saga was punctuated by Assistant U.S. Attorney Thomas Parnham, the government's negotiator in this settlement, according to information from the U.S. Attorney's Office. While the dust settles on this case, the resolution is keenly poised as a reminder to all that in the government's eyes, creative accounting is a no-go zone. Significantly, the nitty-gritty of the claims resolved by this settlement remains, officially, only allegations. No formal admission of liability has been made, leaving one to wonder if there's more than what meets the eye in the shadowy overlaps of COVID-19 relief finance and business ethics.
