Slifco Electric, LLC False Claims Act settlement

Case summary

Slifco Electric, LLC, a Sterling Heights, Michigan small business wholly owned by John P. Slifco, has paid $1,460,062 to settle False Claims Act allegations, Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan announced in April 2025. The company was alleged to have falsely certified to the SBA that it was eligible for full Paycheck Protection Program loan forgiveness. The claims are allegations only, and there has been no determination of liability.¹

In April 2020, Slifco Electric obtained a first-draw PPP loan of $2,633,170. According to the settlement announcement, borrowers seeking forgiveness were required to certify the truthfulness of information provided to the SBA, including whether they had paid dividends or other capital distributions to owners during the loan forgiveness covered period. In seeking full forgiveness of that loan, the government alleged, Slifco Electric did not disclose that from March 13, 2020 through the end of the covered period it paid $730,031 in capital distributions to Slifco for his personal expenses.¹

The settlement was handled by Assistant U.S. Attorney Anthony Gentner of the Eastern District of Michigan, with assistance from the SBA's Office of General Counsel.¹

Notes

1. U.S. Attorney's Office for the Eastern District of Michigan, "Michigan Small Business, Slifco Electric, LLC, Pays Over $1.4 Million To Settle False Claims Act Allegations Regarding Paycheck Protection Program" (original), April 28, 2025. ↩₁ ↩₂ ↩₃

Summary written from the documents on this page; every sentence is sourced.