The U.S. Department of Justice and Vix Technology (USA) Inc. have reached a resolution in a False Claims Act lawsuit involving allegations of fraud related to the Paycheck Protection Program (PPP). The lawsuit, initiated by Blockquote, a San Francisco-based company specializing in public interest research and investigations, claimed that Vix Technology improperly received a PPP loan of $1,066,900 on May 18, 2021.
According to the settlement details filed by Blockquote on June 24, 2024, Vix Technology was alleged to have more than the permissible number of employees for eligibility under the PPP guidelines. To qualify for such loans from the U.S. Small Business Administration during COVID-19 relief efforts, businesses were required to have fewer than 300 employees. However, Vix Technology's global operations exceed this threshold.
Vix Technology is an Australian firm engaged in providing automated fare collection systems and other services for public transit sectors. Its U.S. headquarters are located in Tempe, Arizona.
Without admitting any wrongdoing but seeking to avoid litigation uncertainties, Vix has agreed to pay $2,144,114 as part of the settlement with the United States government. Additionally, Vix will cover $20,000 in attorney fees and costs payable to Blockquote.
SBA General Counsel Wendell Davis commented on the resolution: “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration, working with the U.S. Attorney’s Office and with private individuals who uncover fraudulent conduct, to recover the product of fraud and penalties as well.”
Assistant United States Attorney Nickolas Bohl negotiated the terms of this settlement.