California Home Health Agency and Owner Settle Alleged False Claims Act Over Bad PPP Loan

Allstar Health Providers Inc., a California-based home health agency, and its owner, Maria Chua, have agreed to pay $399,990 to the United States to settle allegations that they violated the False Claims Act by improperly accepting and maintaining Paycheck Protection more than one. Program loan (PPP) before 31 December 2020, which violates PPP rules.

The Paycheck Protection Program, established in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by the Small Business Administration (SBA), is designed to help small businesses cover payroll and other essential business expenses during the COVID-19 pandemic. . -19 disease. Under the rules governing PPP in 2020, applicants had to confirm that they will not receive more than one PPP loan before December 31, 2020.

According to the US government, Maria Chua, on behalf of Allstar Health Providers, submitted two applications for PPP loans in May 2020. In both applications, she confirmed that the company will not receive more than one PPP loan before the end of 2020. Despite these requests. Certificates, Allstar Health Providers are said to have received two PPP loans in 2020 and know they are keeping a second, duplicate loan without paying it back. Failure to pay back the second loan resulted in a loss to the SBA when it purchased the loan guarantee for the second loan.

The settlement also resolves claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by J. Bryan Quesenberry. Under these provisions, private entities can file actions on behalf of the United States and receive a share of the recovery. As part of the solution, Mr. Quesenberry will receive about $60,000.

The resolution of this matter involved a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel and the Office of the Inspector General.