U.S. ex rel. Patricia Lesko and Bram Lesko v. Lafontaine Management, Inc.

Case summary

LaFontaine Management, Inc. agreed to pay $1,500,000 to settle allegations that it violated the False Claims Act by making false statements to the SBA to obtain a Paycheck Protection Program loan for which it was ineligible. The company is affiliated with the LaFontaine Automotive Group network of Michigan auto dealerships and related entities. U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan announced the settlement in December 2025. The claims are allegations only, and there has been no determination of liability.¹

In April 2020, LaFontaine Management obtained a first-draw PPP loan of $1,000,000. The government alleged that LaFontaine Management falsely certified it was eligible for the loan and for forgiveness. According to the government, together with its affiliates it had more than 500 employees and was not operating as a franchise with an SBA franchise identifier code, in violation of the PPP rules.¹

The settlement resolved a qui tam lawsuit filed under seal and since unsealed, captioned U.S. ex rel. Patricia Lesko and Bram Lesko v. Lafontaine Management, Inc., Case No. 2:23-cv-13130; the whistleblowers will receive a combined 15 percent of the settlement amount. Assistant U.S. Attorney Anthony Gentner handled the matter for 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, "MANAGEMENT COMPANY FOR MAJOR METRO DETROIT AUTO DEALER TO PAY $1.5 MILLION TO SETTLE FRAUD ALLEGATIONS REGARDING PAYCHECK PROTECTION PROGRAM LOAN" (original), December 10, 2025. ↩₁ ↩₂ ↩₃

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