Civil settlement
U.S. ex rel. Quesenberry v. Bay Wire, Inc., et al.
U.S. ex rel. Quesenberry v. Bay Wire, Inc., et al. — no court filings from this case are in the archive yet; the summary is sourced to 1 document listed under Documents.
Case facts
| Record type | Civil settlement |
|---|---|
| Court | U.S. District Court for the Northern District of California |
| Docket number | No. 2:20-cv-712 (no document in the archive is numbered on it) — main docket |
Case summary
La Baguette LLC, which operates a bakery in Palo Alto, agreed in February 2023 to pay $430,000 to settle False Claims Act allegations. The government alleged that it received and retained a duplicate Paycheck Protection Program loan in 2020 and then improperly sought and received forgiveness for it. The claims are allegations only, and there has been no determination of liability. Two other California companies settled similar allegations at the same time, bringing the combined total to $530,000.1
Dynamic Integrated Solutions, Inc., an industrial equipment supplier in Santa Clara, agreed to pay $50,000 in civil penalties to settle allegations that it received and retained a duplicate loan. It also agreed to repay the loan in full to its lender, relieving the SBA of liability for the federal guaranty of approximately $985,000. Priority Acquisitions, Inc., a licensed general contractor in Castro Valley, agreed to pay $50,000 in civil damages and penalties on the same kind of allegation. It also agreed to repay its loan in full, relieving the SBA of liability for the federal guaranty of approximately $200,625.1
According to the Justice Department, PPP applicants were required to certify throughout 2020 that they would not receive more than one PPP loan before December 31 of that year. All three were alleged to have received and retained more than one PPP loan before Dec. 31, 2020, in violation of PPP rules.1
The settlements resolve qui tam whistleblower claims brought by J. Bryan Quesenberry in U.S. ex rel. Quesenberry v. Bay Wire, Inc., et al., No. 2:20-cv-712 (N.D. Cal.); Quesenberry will receive a total of approximately $80,000 from the three settlements. Trial Attorney Jared S. Wiesner of the Justice Department's Civil Division and Assistant U.S. Attorney Michael T. Pyle for the Northern District of California handled the matter. The SBA's Office of General Counsel and Office of Inspector General assisted.1
Notes
- U.S. Department of Justice, Civil Division, "Three California Companies Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program Loans" (original), February 1, 2023. ↩1 ↩2 ↩3 ↩4
Summary written from the documents on this page; every sentence is sourced.
Documents
1 document about this case is in the archive.
- Three California Companies Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoansPress release · U.S. Department of Justice, Civil Division