Acting U.S. Attorney for the Western District of Michigan, Andrew Birge, announced that Rosler Metal Finishing USA LLC, also known as Roesler Metal Finishing USA LLC (Rosler USA), has agreed to pay $2,289,505.40. This payment resolves allegations that the company violated the False Claims Act by obtaining a second-draw Paycheck Protection Program (PPP) loan in violation of eligibility rules.
“The Paycheck Protection Program was intended only for those who met the eligibility criteria,” stated Acting U.S. Attorney Andrew Birge. “My office will continue to pursue recipients who falsely obtained PPP loans.”
In January 2021, Rosler USA applied for and received a second-draw PPP loan amounting to $1,265,035, which was subsequently forgiven by the SBA. The United States alleges that Rosler USA was not eligible for this loan due to having over 300 employees collectively with its affiliates. Additionally, it is alleged that Rosler USA falsely certified having fewer than 300 employees in its application and omitted shared ownership with other businesses.
The PPP was established under the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020 and expanded by the American Rescue Plan Act (ARPA) in 2021. It provided loans to cover payroll or other specified business expenses but required applicants to meet certain eligibility criteria including having no more than 300 employees collectively with affiliates.
Wendell Davis, General Counsel at the U.S. Small Business Administration commented on the settlement: “The settlement in this matter reflects SBA’s commitment to identifying and pursuing those who perpetrated fraud on the Paycheck Protection Program.”
The civil settlement also resolves claims brought under the qui tam provisions of the False Claims Act against Rosler USA. Under these provisions, private parties can file actions on behalf of the United States and receive a portion of any settlement or judgment. In this case, titled U.S. ex rel. GNGH2 Inc. v. Rosler Metal Finishing USA LLC a/k/a Roesler Metal Finishing USA LLC, No. 1:24-cv-373 (W.D. Mich.), the United States took over proceedings leading to an investigation and negotiated settlement.
This resolution resulted from efforts between the U.S. Attorney’s Office for the Western District of Michigan and the SBA with Assistant United States Attorney Whitney M. Schnurr leading investigations into this case.
It is important to note that these resolved claims are allegations only without any determination of liability.