Ajinomoto Cambrooke, Inc. (Cambrooke), a company headquartered in Ayer, Mass., has agreed to pay $1,360,819.04 to resolve allegations

Summary

Ajinomoto Cambrooke, Inc. (Cambrooke), a company headquartered in Ayer, agreed to pay $1,360,819.04 to resolve allegations that Cambrooke violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan for which it was not eligible. Cambrooke admitted that, on or about May 15, 2020, Cambrooke applied for a first draw PPP loan and certified eligibility while, together with a Japanese parent company, exceeding the applicable size standards. Cambrooke later sought and received forgiveness of the full amount of that loan. The relator will receive 10% of the settlement amount; the qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Ajinomoto Cambrooke, Inc.

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BOSTON – Ajinomoto Cambrooke, Inc. (Cambrooke), a company headquartered in Ayer, Mass., has agreed to pay $1,360,819.04 to resolve allegations that it violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan for which it was not eligible.
Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 29, 2020, to provide emergency financial assistance to the millions of Americans who were suffering the economic effects of the COVID-19 pandemic. The CARES Act authorized forgivable loans to small businesses for job retention and certain approved expenses through the PPP, which the U.S. Small Business Administration (SBA) administered.  The PPP provided for loans in two “draws”—first draw loans became available in March 2020. Businesses were required to certify on their loan applications that they met certain size standards based on, for example, the number of employees they employed.  On May 5, 2020, the SBA issued guidance that, for purposes of assessing whether the borrower met the size standards for a first draw loan, an applicant must count all of its employees, as well as the employees of its U.S. and foreign affiliates, absent an exception.
As detailed in the settlement agreement, Cambrooke admitted that, on or about May 15, 2020, it applied for a first draw PPP loan and certified that it was eligible to receive the loan under the PPP rules. When it applied, Cambrooke, together with its Japanese parent company, exceeded the applicable size standards for eligibility.  Cambrooke later sought and received forgiveness from the SBA of the full amount of that loan.
The settlement credits Cambrooke for cooperation under the Department of Justice’s Guidelines for Taking Voluntary Disclosure, Cooperation and Remediation into Account in False Claims Act Matters.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act.  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The relator will receive 10% of the settlement amount under today’s settlement.  The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Ajinomoto Cambrooke, Inc., No. 25-cv-10220-RGS (D. Mass.).
U.S. Attorney Leah B. Foley and the U.S. Small Business Administration made the announcement today. Assistant United States Attorney Lindsey E. Weinstein of the Affirmative Civil Enforcement Unit handled the case.
cambrooke_settlement_agreement.pdf

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