United States’ Notice of Election to Intervene for the Purpose of Settlement — United States ex rel. Scissors LLC v. Rema Tip Top of America, Inc. (Dkt. 9, D.N.J.)

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The United States' notice of election to intervene for the purpose of settlement in United States ex rel. Scissors LLC v. Rema Tip Top of America, Inc., et al., Civil Action No. 23-20790 (JXN) (JSA), in the U.S. District Court for the District of New Jersey, filed June 13, 2025 as Document 9 and signed by Assistant U.S. Attorney Susan J. Pappy for U.S. Attorney Alina Habba. Under 31 U.S.C. §§ 3730(b)(2) and (4), the United States states that it, the relator, C&J Welding & Construction, LLC, NexGen Industrial Services, Inc. and Industrial Services Group, Inc. d/b/a Universal Blastco have settled. It intervenes on the claim that these defendants knowingly submitted false PPP loan and loan forgiveness applications, including by failing to fully disclose their affiliates.

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Case 2:23-cv-20790-JXN-JRA      Document 9     Filed 06/13/25   Page 1 of 3 PageID: 66




ALINA HABBA
United States Attorney
SUSAN J. PAPPY
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, NJ 07102
Tel.: 201-407-2971
e-mail: susan.pappy@usdoj.gov

                      UNITED STATES DISTRICT COURT
                         DISTRICT OF NEW JERSEY


  UNITED STATES OF AMERICA, ex               HON. JULIEN X. NEALS
  rel. SCISSORS LLC,

                      Plaintiffs,            Civil Action No. 23-20790 (JXN) (JSA)

                 v.                          UNITED STATES’ NOTICE OF
                                             ELECTION TO INTERVENE FOR
  REMA TIP TOP OF AMERICA, INC.,             THE PURPOSE OF SETTLEMENT
  REMA TIP TOP/NORTH AMERICA,
  INC., C&J WELDING &
  CONSTRUCTION, LLC, NEXGEN
  INDUSTRIAL SERVICES, INC., and
  INDUSTRIAL SERVICES GROUP,
  INC. d/b/a UNIVERSAL BLASTCO,

                      Defendants.


                      FILED IN CAMERA & UNDER SEAL

      The United States, pursuant to the False Claims Act, 31 U.S.C. §§ 3730(b)(2)

and (4) hereby notifies the Court of its election to intervene for settlement purposes.

The United States, Scissors LLC, C&J Welding & Construction, LLC (“C&J

Welding”), NexGen Industrial Services, Inc. (“NexGen”), and Industrial Services

Group, Inc. d/b/a/ Universal Blastco (“ISG”) have reached a settlement of the claims

in the action.

Case 2:23-cv-20790-JXN-JRA      Document 9     Filed 06/13/25    Page 2 of 3 PageID: 67




      Specifically, the United States intervenes in this action with respect to civil

claims predicated upon the following factual allegations (the “Covered Conduct”):

      The United States contends it has certain civil claims against C&J Welding,

      NexGen, and ISG arising from their knowing submission of false loan and

      loan forgiveness applications for the Forgiven PPP Loans (defined in the

      Settlement Agreement) during the Relevant Time Period. Specifically, the

      United States contends that Defendants knowingly failed to fully disclose

      their affiliates, including Rema Tip Top of America, Inc. (“Rema”) on their

      Forgiven PPP loan applications, and C&J Welding, NexGen, and ISG falsely

      certified eligibility for PPP loans and loan forgiveness. Because of their

      affiliation with each other and with other entities, C&J Welding, NexGen,

      and ISG exceeded the employee and/or revenue-based eligibility limits for

      PPP loans and loan forgiveness. C&J Welding, NexGen, and ISG were

      therefore too large to qualify for the Forgiven PPP loans that they received.

      The United States declines intervention with respect to all other claims

alleged against the Defendants apart from those based upon the Covered Conduct.

      Pursuant to the terms and conditions of the settlement agreement, a

stipulation of dismissal will be filed following the payment of the settlement

amount.

      The United States requests that the Complaint, the Government’s Notice of

Election, and this notice be unsealed; all other papers or Orders on file in this

matter remain under seal; and the seal be lifted on all pleadings filed in this action



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Case 2:23-cv-20790-JXN-JRA        Document 9       Filed 06/13/25   Page 3 of 3 PageID: 68




after the filing of this Notice of Election.

       The United States is filing a proposed Order to this effect.

Dated: June 13, 2025
Newark, New Jersey


                                                   Respectfully submitted,

                                                   ALINA HABBA
                                                   United States Attorney

                                               By: /s/ Susan Pappy
                                                  Susan J. Pappy
                                                  Assistant U.S. Attorney
                                                  Attorneys for the United States




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