Manufacturer to pay $2.6 million for denying ties to China when applying for PPP loan
Hemisphere GNSS (USA) Inc. has entered into an agreement with the U.S. Department of Justice (DOJ) to resolve allegations that the company provided false information when applying for and receiving forgiveness of a Paycheck Protection Program (PPP) loan. The DOJ claims that the company, which manufactures satellite global positioning systems, violated the False Claims Act in February 2021 when it applied for a second round PPP loan. Hemisphere stated that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in the company. Additionally, Hemisphere asserted that it did not “retain as a board member a person who is a resident of the People’s Republic of China.” Both of these claims were determined to be false, thus negating the company’s eligibility for the PPP loan, which was later forgiven. To resolve these issues, Hemisphere has agreed to pay $2.6 million.
What people are saying
In a recent quote, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said, “PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open. When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.”
U.S. Attorney Gary M. Restaino for the District of Arizona added, “Legitimate PPP loans saved small businesses across America. But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.”
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