It has come to light that a Raleigh-based IT company, DynPro, Inc., has agreed to cough up in excess of $2 million to settle claims of falsifying information to obtain a Paycheck Protection Program (PPP) loan. This settlement was announced by the Acting United States Attorney for the Eastern District of North Carolina. The Department of Justice reported that DynPro misrepresented their financials to illegitimately secure emergency aid meant to assist small businesses during the COVID-19 pandemic.
The PPP loans were intended to provide a financial lifeline to struggling businesses, with stipulations, including a requirement that businesses must have seen at least a 25% drop in quarterly gross receipts to be eligible for a second draw. However, DynPro, while applying for this second-draw PPP loan, falsely reported to have met this condition. Assistant U.S. Attorney Andrew Kasper, along with the Small Business Administration's Office of General Counsel, spearheaded the government's case resulting in this resolution.
Despite the serious allegations, it was noted that DynPro took initiative to self-report their inaccurate claims to the United States Attorney’s Office. They cooperated fully with the subsequent investigation, aiding in the identification of key witnesses and documents. This active participation played a part in the final outcome. These tidbits of information gathered from an official release by the DOJ add dimension to the understanding of the company's alleged misconduct.
Daniel P. Bubar, the Acting U.S. Attorney, highlighted the cooperative effort that led to uncovering the truth behind DynPro's false loan application. The company will now have to repay a hefty sum of $2,178,254 to resolve their liability under the False Claims Act.
