Management Company Agrees to Pay More Than $2 Million to Resolve Improper Paycheck Protection Program Loan

Summary

A press release published April 9, 2026 reports that Jeff Wyler Automotive Family, Inc., an automotive management company, agreed to pay $2,106,927 to resolve allegations that it violated the False Claims Act. The settlement resolves allegations that the company falsely certified it was eligible to apply for and receive forgiveness of a first-draw PPP loan. The Government contends that, together with its affiliates, the company had more than 500 employees and was ineligible, while the release states the company did not operate as a franchise and so had to include its affiliates' employees. The civil case is United States ex rel. David Reed v. Jeff Wyler Automotive Family, Case No. 2:25-CV-00084-SCM, a qui tam action. The release states that the claims are allegations only.

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Full text

LEXINGTON, Ky.
– An automotive management company, Jeff Wyler Automotive Family, Inc., agreed to pay $2,106,927 to resolve allegations that it violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims.
Congress created the Paycheck Protection Program (PPP) to provide emergency financial assistance to small American businesses struggling to pay employees and other expenses during the COVID-19 pandemic. Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the U.S. Small Business Administration (SBA). Borrowers were required to certify in their applications that they were eligible for the requested loans and that the information they provided was true and accurate. Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees and exceptions for certain types of businesses operating as franchises, such as automotive dealerships.
The settlement resolves allegations that Jeff Wyler Automotive Family, Inc. falsely certified it was eligible to apply for and receive forgiveness for a first-draw PPP loan. Jeff Wyler Automotive Family, Inc. served as the management company for a network of automotive dealerships. Under the PPP, automotive dealerships were not required to count affiliates’ employees in their PPP applications if the dealerships qualified for the PPP’s franchise exception. Although Jeff Wyler Automotive Family, Inc. managed automotive dealerships, it did not operate as a franchise and thus was required to include its affiliates’ employees when considering PPP eligibility. The Government contends that, together with its affiliates, Jeff Wyler Automotive Family, Inc. had more than 500 employees and was therefore ineligible for its first-draw loan.
The settlement resolves a lawsuit brought by a private citizen under the
qui tam
provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individual who filed the
qui tam
complaint is eligible to receive a portion of the settlement proceeds. The civil case is captioned
United States ex rel. David Reed v. Jeff Wyler Automotive Family, Inc.
, Case No. 2:25-CV-00084-SCM.
This matter was handled by Assistant U.S. Attorney Meghan Stubblebine, with assistance from the SBA’s Office of General Counsel. The claims resolved by the settlement are allegations only; there has been no determination of liability.
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www.justice.gov