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Brian M. LaMacchia

Oversight and enforcement

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Oversight and enforcement
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PPP
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The profile

Assistant U.S. Attorney in Massachusetts named on the Kabbage PPP False Claims Act resolution.

Identity and role

Brian M. LaMacchia is an Assistant U.S. Attorney in the District of Massachusetts. The U.S. Attorney's Office in Boston described him in May 2024 as chief of its Affirmative Civil Enforcement Unit, when it credited him and Diane Seol with handling the False Claims Act resolution with Kabbage. He signed the government's filings in two PPP whistleblower cases against lenders, United States ex rel. Berteletti v. Kabbage, Inc. and United States ex rel. Integra Research Group LLC v. B.S.D. Capital, Inc. dba Lendistry, and the office credits him with three PPP borrower settlements announced between September 2025 and February 2026.

Biography / career arc

Our records on LaMacchia are court papers in these two cases and the office's press releases from 2024 to 2026, which give his title and unit but not his earlier career. He signed the May 2024 Kabbage notice under Acting U.S. Attorney Joshua S. Levy and the June 2025 Lendistry consent under U.S. Attorney Leah B. Foley.

Pandemic-relief / PPP-EIDL role

Kabbage. The Massachusetts case (No. 1:20-cv-12114-GAO) began as a whistleblower suit filed under seal on November 25, 2020. On May 7, 2024 LaMacchia digitally signed the Massachusetts settlement agreement for the United States and the government's notice that it would intervene only to settle with Kabbage, Inc., which unsealed the case; the notice also lists Seol and Civil Division attorneys including Sarah E. Loucks. Kabbage had filed for Chapter 11 in Delaware in October 2022.

The office announced the resolution on May 13, 2024: two settlements giving the United States an allowed general unsecured claim in the bankruptcy of up to $120 million, with actual recovery dependent on the estate's assets.

  • The Massachusetts settlement, up to $63.2 million, resolves allegations that Kabbage systemically inflated tens of thousands of PPP loans. KServicing Wind Down Corp. admitted that Kabbage double-counted state and local taxes paid by employees, failed to exclude annual compensation above $100,000 per employee, and miscalculated leave and severance payments. Kabbage received a $12.5 million credit for money it had already returned to the SBA.
  • The Texas settlement, up to $56.7 million, resolves allegations that Kabbage knowingly ran inadequate fraud controls and submitted thousands of PPP applications that were fraudulent or highly suspicious.

On July 16, 2024 Judge George A. O'Toole, Jr. dismissed the Massachusetts case. Claims against Kabbage, Inc. for the settled conduct were dismissed with prejudice as to the United States.

Lendistry. A second whistleblower suit, filed under seal on October 30, 2024 (No. 1:24-cv-12753-WGY), named B.S.D. Capital, Inc., which does business as Lendistry. The relator, Integra Research Group LLC, alleged on information and belief that more than 63,000 of the PPP loans Lendistry originated, over 30.7% of the total, were fraudulent. The relator dismissed the suit on June 9, 2025. On June 24, 2025 LaMacchia signed the United States' consent, which said dismissal was "commensurate with the public interest" and that the matter did not warrant "the continued expenditure of government resources to pursue or monitor the action based on currently available information." Judge William G. Young dismissed the case without prejudice to the relator and the United States on July 3, 2025. The dismissal ended the case without a ruling on the allegations.

Borrower settlements. The office's releases name LaMacchia, as chief of the Affirmative Civil Enforcement Unit, as handling three False Claims Act settlements with PPP borrowers that admitted or acknowledged they were ineligible:

  • September 17, 2025: International Brotherhood of Electrical Workers Local 103, a Dorchester union, agreed to pay $2,033,205. It admitted taking a first-round loan in April 2020, before Congress made unions eligible in March 2021.
  • December 12, 2025: Kokusai Denki Electric America, Inc., formerly Hitachi Kokusai Electric Comark, LLC, of Southwick, Massachusetts, agreed to pay $2,092,371. It admitted receiving a $1,342,232 second-round loan in January 2021 while certifying 67 employees; counting its Tokyo-based parent, it had more than 300.
  • February 5, 2026: QP Holdings, LLC of Arkansas and three affiliates agreed to pay $3,295,129.76. They acknowledged exceeding the size standards for second-draw loans. The settlement resolved a whistleblower suit, United States ex rel. Verity Investigations, LLC v. QP Holdings, LLC (No. 24-cv-12001-NMG), and the relator receives 10%.

Each release says the settlement credits the borrower for cooperation under the Justice Department's False Claims Act cooperation guidelines.

Their own relief

Neither the SBA's public PPP loan-level data (September 30, 2024 release) nor the USAspending COVID-EIDL award files we searched list a loan to a borrower named Brian LaMacchia.

LaMacchia is a government attorney, not a party to any of these cases. The Kabbage settlement's fraud-control counts and the Lendistry complaint are allegations; the Kabbage payroll-calculation errors were admitted in the settlement.

Where they are now (2025–2026)

The office's February 5, 2026 release on the QP Holdings settlement is our latest record of LaMacchia. It names him as chief of the Affirmative Civil Enforcement Unit of the U.S. Attorney's Office in Boston, under U.S. Attorney Leah B. Foley.

Sources held in this archive

  • Who Got Paid
  • When the Guaranty Fee Ran Backwards

Sources

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