Speed Fab-Crete Corporation, a concrete manufacturer based in Kennedale, Texas, has agreed to pay $1,817,546.25 to settle allegations of violating the False Claims Act. The company was accused of improperly obtaining a loan from the Small Business Administration's Paycheck Protection Program (PPP). Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham announced the settlement.
The PPP was established in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act to assist small businesses facing economic difficulties due to the COVID-19 pandemic. Eligibility for a PPP loan depended on several factors.
In 2020, Speed Fab-Crete received a PPP loan amounting to $1,170,000 at a time when some of its owners were dealing with criminal charges. According to government claims, this made Speed Fab-Crete ineligible for the loan as SBA rules disqualify any business if an owner with at least 20% equity faces criminal charges.
"This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic," stated Acting United States Attorney Chad E. Meacham. "We will continue to investigate and take action as necessary to reclaim those funds on behalf of the American taxpayer."
SBA General Counsel Wendell Davis remarked on efforts involving various agencies: "This settlement highlights the enhanced efforts of the SBA, working with the Department of Justice, SBA’s Office of Inspector General, and other Federal law enforcement agencies...to pursuing those who violated PPP program requirements and holding them accountable."
The lawsuit was filed under the qui tam provision of the False Claims Act which allows private parties to sue on behalf of the United States and receive part of any recovery. In this case numbered 3:23-CV-2162-S in U.S. District Court for Northern Texas, Aidan Forsyth will receive 15% of what is recovered by the government as part of this settlement.
Assistant United States Attorney Brian Stoltz represented the government in this case with support from Lane Siems at SBA. The settled civil claims are currently only allegations; no civil liability has been determined.