Allstar Health Providers Inc., a home health agency based in California, and its owner, Maria Chua, have reached a settlement with the United States to pay $399,990. This resolves allegations that they violated the False Claims Act by receiving and retaining more than one Paycheck Protection Program (PPP) loan before December 31, 2020.
The PPP was established under the CARES Act in March 2020 to assist small businesses during the COVID-19 pandemic. It required applicants to certify they would not receive more than one loan before the end of 2020. The United States alleged that Chua submitted two applications for Allstar Health Providers in May 2020, certifying each time that only one loan would be received. However, it is claimed that Allstar retained both loans without repaying the duplicate, resulting in a loss when the SBA purchased the loan guaranty.
Principal Deputy Assistant Attorney General Brian M. Boynton stated: “PPP loans were intended to provide critical relief to small businesses.” He emphasized the department's commitment to pursuing those who violated PPP requirements or other COVID-19 assistance programs.
U.S. Attorney Martin Estrada for the Central District of California remarked: “When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose.”
Therese Meers from SBA highlighted this case as an example of successful collaboration between SBA and DOJ in addressing fraudulent acts against COVID-relief programs.
The settlement also resolves claims under the qui tam provisions of the False Claims Act filed by J. Bryan Quesenberry. He will receive approximately $60,000 from this settlement.
This resolution involved efforts from multiple entities including the Civil Division’s Commercial Litigation Branch and Fraud Section, U.S. Attorney’s Office for Central District of California, SBA’s Office of General Counsel and Inspector General.
Trial Attorney Jared S. Wiesner and Assistant U.S. Attorney Frank Kortum managed this matter.
In May 2021, a COVID-19 Fraud Enforcement Task Force was established to enhance efforts against pandemic-related frauds through coordination across government agencies.
The public can report potential fraud involving COVID-19 relief programs via various channels provided by DOJ.
It is important to note that these are allegations only; there has been no determination of liability in this case.