ATLANTA - A Peachtree City business has agreed to pay $2.6 million after federal investigators found the firm improperly secured a pandemic relief loan meant for small businesses.
Universal Environmental Services PPP settlement
What we know:
Universal Environmental Services, a Peachtree City company owned by German parent conglomerate Avista Oil Group, agreed to a $2.6 million civil settlement. Federal prosecutors stated the company improperly claimed fewer than 300 employees on a 2020 Paycheck Protection Program application to secure an approximate $2 million loan.
Though the entire corporate family employed well over 300 people, the subsidiary reported only 287 domestic workers on its application. A bank approved the loan, which the Small Business Administration later paid off at taxpayer expense.
Whistleblower complaint in Georgia federal court
By the numbers:
The settlement resolves a civil lawsuit filed in the U.S. District Court for the Northern District of Georgia under case No. 3:24-cv-00109-LMM. The private whistleblower who filed the complaint under False Claims Act provisions will receive $312,000 from the total recovery.
Universal Environmental Services must also pay the whistleblower's attorney fees as part of the agreement.
Federal investigation of pandemic loan fraud
What they're saying:
"When people provide false information to obtain government-backed loans, they break the law and misdirect resources away from those who need them," said U.S. Attorney Theodore S. Hertzberg. "Our office will continue to enforce the False Claims Act to recover such funds, plus penalties."
Assistant U.S. Attorney Anthony DeCinque handled the investigation alongside former Special Assistant U.S. Attorney Nicole Karem and the SBA Office of General Counsel.
Universal Environmental Services legal liability
What you can do:
Federal authorities noted that the resolved claims are allegations only, and there has been no official determination of liability. Officials have not announced whether any additional individuals or entities face further enforcement action.
Reporting COVID relief fraud to authorities
What you can do:
Anyone with information regarding potential pandemic program fraud can report it to the National Center for Disaster Fraud Hotline at 866-720-5721. Submissions can also be completed online through the Small Business Administration Office of Inspector General portal.
The Source: The information in this story was gathered from the U.S. Attorney's Office for the Northern District of Georgia, who issued a press release on Monday detailing the settlement.