The Texas Construction News staff writer
HOUSTON – Four luxury home building companies and their three owners have agreed to pay $2.65 million to resolve allegations that they violated the False Claims Act by submitting fraudulent applications for federally funded pandemic relief loans.
The settlement, announced Jan. 20 by the U.S. Attorney’s Office for the Southern District of Texas, resolves claims that the defendants provided false information to secure Paycheck Protection Program (PPP) loans.
Prosecutors alleged the builders inflated their payroll expenses to qualify for larger loans than they were entitled to receive. The PPP was created by Congress to help struggling businesses retain employees during the COVID-19 pandemic.
“The claims resolved by the settlement are allegations only and there has been no determination of liability,” the Department of Justice noted in its announcement. The investigation was conducted by the Small Business Administration’s Office of Inspector General.
