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Published on October 11, 2024
Rancho Cucamonga Health Agency to Pay Nearly $400K Settlement Over Duplicate PPP Loan ClaimsSource: Unsplash/Giorgio Trovato

In a settlement that underscores ongoing efforts to address fraudulent activities linked to pandemic relief funds, Rancho Cucamonga's Allstar Health Providers Inc. and its owner, Maria Chua, have agreed to a nearly $400,000 payment to resolve claims of wrongdoing. According to the Justice Department, the home health agency received and improperly retained an extra Paycheck Protection Program (PPP) loan.

The Paycheck Protection Program was established by Congress as part of the CARES Act to help small businesses stay afloat during the pandemic, covering employee salaries and other business expenses. To receive these PPP loans, applicants were required to certify eligibility and compliance with program rules, one of which included a prohibition against securing more than a single PPP loan before December 31, 2020. The settlement comes as a result of allegations that Chua submitted two loan applications on Allstar Health Providers’ behalf in May 2020, certifying each time that the company would not receive an additional loan before the year's end. Nevertheless, the agency received two PPP loans and failed to repay the second, leading to a loss for the Small Business Administration (SBA) when it purchased the loan's guaranty.

"When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose," said U.S. Attorney Martin Estrada for the Central District of California. The statement, obtained by the Justice Department, reiterates the commitment to holding violators accountable. Echoing this sentiment, Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the department's dedication to pursuing those who knowingly skirted the rules to obtain funds they weren't entitled to.

This case stems from a whistleblower suit filed under the qui tam provisions of the False Claims Act, which allows private citizens to sue on behalf of the U.S. and share in any recovery. The whistleblower, J. Bryan Quesenberry, is set to receive approximately $60,000 from the resolution of these claims.