New York City-based Lafayette RE Management LLC and its founder Thibault Adrien have settled a lawsuit with the federal government, agreeing to a sum of $680,000 over claims they misled the government to secure a forgivable loan intended for businesses struggling amid the COVID-19 pandemic, this according to the U.S. Attorney's Office for the Western District of Texas.
The Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, was designed to provide financial relief to sustain American businesses as the pandemic wreaked havoc, the program required applicants to assert the necessity of the loan for their continuous operation due to "current economic uncertainty" and that the funds would be directed toward retaining workers and covering other prescribed expenses, these conditions laid the groundwork for the allegations against Lafayette and Adrien.
Lafayette and Adrien were accused of making false certifications in their application for a $335,000 PPP loan, and again when they sought loan forgiveness, as reported by the Justice Department. They claimed the loan was required due to economic hardships caused by the pandemic—assertions that the U.S. government challenged as untrue.
The case surfaced thanks to whistleblower Jesus Nunez-Unda, who filed the complaint under the qui tam provisions of the False Claims Act, and where the law allows individuals to sue on behalf of the government and potentially receive a cut of any financial recovery, the case titled United States ex rel. Nunez-Unda v. Lafayette RE Management LLC, Brandywine Homes USA LLC, and Thibault Adrian, was overseen in the Western District of Texas.
While the payment of $680,000 closes this particular chapter, it is important to note that the settlement resolves the allegations without a legal determination of liability, Assistant U.S. Attorney Samuel M. Shapiro, who represented the government in these proceedings, emphasized that the resolution pertains solely to the allegations made.
