Southside Communities Fire Protection, Inc. — Has Agreed to Pay a Settlement of $3,499,619 (Chatham County, Georgia)

Summary

Southside Communities Fire Protection, Inc. (Southside), a nonprofit entity providing emergency services to Chatham County, Georgia, agreed to pay $3,499,619 to resolve allegations that Southside violated the False Claims Act by improperly obtaining a Paycheck Protection Program (PPP) loan. GNGH2, Inc. filed a qui tam complaint in the Middle District of Florida alleging that Southside was ineligible for a $3.1 million loan because it was a Section 501(c)(4) nonprofit entity. GNGH2 will receive $318,115 as a share in the recovery. The release states that the claims are allegations only and there has been no determination of liability. United States Attorney Gregory W. Kehoe announced the settlement.

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“Southside Communities Fire Protection, Inc. — Has Agreed to Pay a Settlement of $3,499,619 (Chatham County, Georgia).” Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-11-14-georgia-non-profit-entity-pays-3-5-million-to-settle-false-fe74342efb/, SHA-256 bb5e18f517055c8ad066be1efe757621b1af39b76bab0ab7558d895e880a1d71.

Full text

Tampa, FL – United States Attorney Gregory W. Kehoe announces that Southside Communities Fire Protection, Inc. (Southside), a nonprofit entity providing emergency services to Chatham County, Georgia, has agreed to pay a settlement of $3,499,619 to resolve allegations that Southside violated the False Claims Act by improperly obtaining a loan under the Paycheck Protection Program (PPP).
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. The PPP was administered by the U.S. Small Business Administration (SBA). Under the PPP rules and regulations, nonprofit entities organized under Section 501(c)(4) of the Internal Revenue Code were not eligible for PPP loans.
GNGH2, Inc. (GNGH2) filed a qui tam complaint in the Middle District of Florida alleging that Southside improperly obtained a $3.1 million PPP loan. According to the allegations in the complaint, Southside was ineligible for its PPP loan because it was a Section 501(c)(4) nonprofit entity. The United States investigated GNGH2’s allegations with the cooperation of Southside. This settlement concludes the litigation and GNGH2 will receive $318,115 as a share in the recovery.
“This settlement is the latest demonstration of our Office’s commitment to the recovery of money from individuals and entities that improperly obtained loans under the PPP program,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.
“The favorable settlement in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration, working in conjunction with the U.S. Attorney’s Office to recover the pandemic relief funds improperly procured,” said SBA General Counsel Wendell G. Davis.
This settlement resulted from a coordinated effort by the U.S. Attorney’s Offices for the Middle District of Florida and the Southern District of Georgia. Assistant U.S. Attorneys Christopher J. Emden from the Middle District of Florida and Jennifer Thompson from the Southern District of Georgia led the investigation, with assistance from the Small Business Administration’s Office of General Counsel.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
NOTE: This matter occurred on a previous date but not published at that time due to government shutdown. Press release posted and made available following the return to normal operations.

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Original: www.justice.gov