A North Texas concrete company, Speed Fab-Crete Corporation, has settled a lawsuit for $1.8 million after being accused of falsely claiming eligibility for a Paycheck Protection Program (PPP) loan. The Kennedale-based manufacturer agreed to pay $1,817,546.25, as announced by Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham, to resolve the assertions that they applied for and accepted funds from the PPP when they were, in fact, ineligible.
The PPP loans were part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, set up in March 2020 to support small businesses impacted by the economic hardships brought on by the COVID-19 pandemic. Eligibility for these funds was contingent on several factors, including the criminal background of the business owners. Speed Fab-Crete, which received a loan of $1,170,000, came under scrutiny as certain of its owners faced criminal charges at the time, disqualifying it per SBA's guidelines. Yet, the loan was granted and later became subject to this legal discrepancy, culminating in the current settlement.
In a statement detailed by the Department of Justice, Meacham stated, "This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic." He continued, "We will continue to investigate and take action as necessary to reclaim those funds on behalf of the American taxpayer."
The lawsuit was originally filed under the qui tam provision of the False Claims Act, which allows individuals to sue on behalf of the U.S. government and potentially share in any financial return. In this case, the whistleblower, Aidan Forsyth, is set to receive a 15% share of the recovery. Although the civil claims settled by the agreement are allegations only, and no civil liability has been determined, this case spotlights the overall intensified efforts by various federal entities to pursue and hold accountable those who have sidestepped PPP program requirements.
The prosecution was handled by Assistant United States Attorney Brian Stoltz, with the aid of Lane Siems of the SBA. For more information on this settlement and the ongoing efforts to address financial fraud related to the PPP loans, contact [email protected].
