Company that improperly took COVID 19 PPP loan agrees to pay nearly $1 million to settle False Claims Act case
Summary
Docklight Brands agreed to pay $989,438 to the United States to resolve allegations that it improperly obtained a Paycheck Protection Program loan, the U.S. Attorney's Office for the Western District of Washington announced on March 11, 2024. A False Claims Act qui tam suit filed in September 2022 by relator Sidesolve LLC alleged that Docklight falsely certified it was eligible for a $494,719 PPP loan, although its involvement with cannabis businesses that remain illegal under federal law made it ineligible. Docklight develops and sells hemp derived products and licenses marks for use with state-licensed cannabis products. Under the settlement Docklight pays back double the amount of the loan, with the additional $494,719 as penalties, and Sidesolve will receive $148,416.70.
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Press Release Company that improperly took COVID 19 PPP loan agrees to pay nearly $1 million to settle False Claims Act case Monday, March 11, 2024 For Immediate Release U.S. Attorney's Office, Western District of Washington Docklight Brands was ineligible for Small Business Administration loan due to involvement with federally illegal cannabis businesses Seattle –Brands LLC, has agreed to pay $989,438 to the United States to resolve allegations the company improperly obtained a Paycheck Protection Loan from the U.S. Small Business Administration. Docklight Brands develops and sells hemp derived products, and licenses certain marks for use in connection with state-licensed cannabis products. A False Claims Act qui tam lawsuit originally brought by relator Sidesolve LLC, alleged that the company was ineligible for the federal loan program because of its involvement with cannabis businesses that remain illegal under federal law. According to the settlement, Sidesolve filed the qui tam case in September 2022, alleging that Docklight had falsely certified that it was eligible for a $494,719 Paycheck Protection Program loan. The Small Business Administration program allows the loan amount to be forgiven. “Those seeking vital assistance from SBA’s pandemic response programs must comply with the requirements,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Today’s settlement sends a strong message of accountability. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.” Under the terms of the settlement, Docklight has agreed to pay back double the amount of the loan, with the additional $494,719 as penalties. Under the qui tam statute, the relator receives a percentage of the settlement for bringing the false claims matter to the government’s attention. In this case Sidesolve LLC will receive $148,416.70 of the settlement funds. The matter was handled for the United States Attorney’s Office by Assistant United States Attorney Matt Waldrop with investigative assistance from SBA-OIG. Contact Press contact for the U.S. Attorney’s Office is Communications Director Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov . Updated March 11, 2024 Topics COVID-Related Fraud False Claims Act Component USAO - Washington, Western Related Content Press Release DOJ and Seattle-based FidaLab, LLC settle allegations it inflated bills to government health care programs Seattle – A Seattle medical testing laboratory will pay the government $2 million to resolve allegations that it illegally overbilled government health care programs, announced U.S. Attorney Charles Neil Floyd. January 12, 2026 Press Release Three companies settle allegations they applied for and received pandemic related loans that were illegal Seattle – Three different companies settled allegations they applied for and accepted millions of dollars in pandemic loans for which they were not qualified, announced U.S. Attorney Charles Neil Floyd. December 3, 2025 Press Release Indian national sentenced to prison for Medicare fraud scheme that stole more than $1 million in taxpayer funds Seattle – An Indian national convicted of health care fraud was sentenced today in in U.S. District Court in Seattle to two years in prison, announced U.S. Attorney Charles Neil... December 2, 2025
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