DOJ and Vix Technology (USA) Inc. resolve allegations of Paycheck Protection Program fraud

Summary

The U.S. Department of Justice and Vix Technology (USA) Inc. resolved a qui tam False Claims Act lawsuit alleging Vix had too many employees to qualify for the Paycheck Protection loan, $1,066,900, that it received on May 18, 2021. Vix will pay $2,144,114, described as double damages, and does not admit any wrongdoing. The relator, the San Francisco company Blockquote, filed the qui tam action on June 24, 2024, according to the settlement agreement, and will receive $20,000 from Vix for attorney fees and costs. The text names SBA General Counsel Wendell Davis, who is quoted, and Assistant United States Attorney Nickolas Bohl, who negotiated the settlement.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Seattle – The U.S. Department of Justice and Vix Technology (USA) Inc. today resolved a
qui tam
False Claims Act
lawsuitalleging Vix had too many employees to qualify for the $1,066,900 Paycheck Protection loan it received on May 18, 2021. Vix will pay $2,144,114 to resolve the matter. The relator of the
qui tam
case will receive a percentage of the settlement amount. The relator is the San Francisco company Blockquote that produces public interest internet research, news reporting and investigations.
According to the settlement agreement, on June 24, 2024, Blockquote filed a
qui tam
action alleging that Vix Technology had improperly received a COVID 19 Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration.  To be eligible for the loan a business had to have fewer than 300 employees. Vix has more than 300 employees in its operations around the world and therefore did not qualify for the loan.
Vix Technology is an Australian company that designs, supplies, and operates automated fare collection systems, intelligent transportation systems access, payment, and passenger information display systems for the public transit industry. The company’s U.S. Operations are headquartered in Tempe, Arizona.
Vix does not admit any wrongdoing, but to avoid the uncertainty of litigation, entered into the agreement with the United States paying double damages of $2,144,114. Vix will also pay $20,000 to the relator, Blockquote, for attorney fees and costs.
“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration, working with the U.S. Attorney’s Office and with private individuals who uncover fraudulent conduct, to recover the product of fraud and penalties as well,” said SBA General Counsel Wendell Davis.
The settlement was negotiated by Assistant United States Attorney Nickolas Bohl.

File and source

File

2025-03-19_doj-and-vix-technology-usa-inc-resolve-allegations-of-paycheck-protectio_d4df50e1.md.txt

Size

1,916 bytes

SHA-256

4c097685ff9e436e831041f182375313881e6d54db8e216f5d9f621a04228c8a

Our copy

2025-03-19_doj-and-vix-technology-usa-inc-resolve-allegations-of-paycheck-protectio_d4df50e1.md.txt

Original

www.justice.gov