U.S. ex rel. Forsyth v. Firas Hajjar, et al.

Case summary

Four Michigan companies owned by Firas Hajjar and Bradley McKouen agreed to pay a combined $1,933,448 to settle False Claims Act allegations; the claims are allegations only, and there has been no determination of liability. According to the settlement announcement, PPP regulations excluded borrowers with certain criminal histories, particularly financial felonies such as tax evasion. The United States contended that the two owners failed to disclose that history on their companies' applications.¹

Firas Hajjar owned Your Fantasy Warehouse, Inc., Ugly Christmas Sweater, Inc., and Costume Agent, Inc., which collectively obtained four PPP loans and loan forgiveness totaling $504,482. The United States contended the companies falsely certified their eligibility because Hajjar did not disclose that he had pleaded guilty to felony tax evasion within the preceding five years.¹

Bradley McKouen owned Delta Staffing LLC, which obtained two PPP loans and loan forgiveness totaling $462,241.92. The United States contended Delta Staffing falsely certified its eligibility because McKouen did not disclose that he had, within the preceding five years, been placed on supervised release after a felony tax evasion conviction.¹

The settlements resolved a sealed qui tam lawsuit, U.S. ex rel. Forsyth v. Firas Hajjar, et al., No. 2:22-cv-11432; the whistleblower will receive 15 percent of the settlement.¹

Notes

1. U.S. Department of Justice, U.S. Attorney's Office for the Eastern District of Michigan, "Four Michigan Businesses Pay $1.9 Million To Settle Allegations That They Unlawfully Obtained Paycheck Protection Program Loans" (original), case No. 2:22-cv-11432 (E.D. Mich.). ↩₁ ↩₂ ↩₃ ↩₄

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