United States' Notice of Election to Intervene in Part and Request to Unseal (N.D. Tex., Dkt. 24)

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The United States' Notice of Election to Intervene in Part for Purposes of Settlement and to Decline to Intervene in Part and Request to Unseal, in United States ex rel. Sidesolve, LLC v. Empire Roofing, Inc. and others, Civil Case No. 3:22-CV-2060-B, in the Northern District of Texas, Document 24, filed November 30, 2023. It states that the United States, the Relator and the defendants have finalized and executed a Settlement Agreement. The United States intervenes in part as to the False Claims Act allegations that eight PPP loan applications falsely certified eligibility because the applicant entities were affiliated and collectively employed more than 500 employees. It declines to intervene as to all other claims and asks that the complaint, the notice and the proposed order be unsealed.

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS x
DALLAS DIVISION

UNITED STATES OF AMERICA ex rei.
SIDESOLVE, LLC,

Plaintiffs,

V.

EMPIRE ROOFING, INC.; EMPIRE ROOFING
COMPANIES, INC.; EMPIRE ROOFING OF
OKLAHOMA, INC.; EMPIRE ROOFING AND
SHEET METAL, INC.; SR DISPOSAL, LTD
f/k/a EMPIRE DISPOSAL, LTD; EMPIRE
ROOFING COMPANY SOUTHEAST, LLC;
EMPIRE ROOFING COMPANY OF GEORGIA,
LLC; RONNIE MCGLOTHLIN; SANDRA
SEDILLO-MCGLOTHLIN; AND TECTA
AMERICA CORP.,

Defendants.

Civil Case No. 3:22-CV-2060-B

FILED IN SEALED CASE

UNITED STATES’ NOTICE OF ELECTION TO INTERVENE
IN PART FOR PURPOSES OF SETTLEMENT AND TO
DECLINE TO INTERVENE IN PART AND REQUEST TO UNSEAL

Pursuant to the False Claims Act, 31 U.S.C. § 3730(b)(2) and (4), the United

States of America notifies the Court of its election to intervene in part in this civil action

and to decline to intervene in part in this civil action. The United States, Relator

Sidesolve, LLC, and Defendants Empire Roofing, Inc., Empire Roofing Companies, Inc.,

Empire Roofing Company Southeast, LLC, Empire Roofing Company of Georgia, Inc.,

Empire Roofing of Oklahoma, Inc., Empire Roofing and Sheet Metal, Inc., SR Disposal,

Ltd. (f/k/a Empire Disposal, Ltd.), Ronnie McGlothlin, Sandra Sedillo McGlothlin, and
Case 3:22-cv-02@ 8 Document 24 Filed 11/30/23 Hage 2of5 PagelD 88

Tecta America Corp. (collectively, “Empire Roofing”) have finalized and executed a
Settlement Agreement that will resolve all claims in this Civil Action.

The United States partially intervenes in this action with respect to the False
Claims Act predicated upon the following factual allegations arising from the
applications for, receipt of, and forgiveness of, eight Paycheck Protection Program (PPP)
loans during the period of April 2020 to June 2021:

Empire Roofing violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by

falsely certifying in eight PPP loan applications that Empire Roofing, Inc.,

Empire Roofing Companies, Inc., Empire Roofing Company Southeast,

LLC, Empire Roofing Company of Georgia, Inc., Empire Roofing of

Oklahoma, Inc., Empire Roofing, Inc. (TN), Empire Roofing and Sheet

Metal, Inc., and SR Disposal, Ltd. (f/k/a Empire Disposal, Ltd.) met all

requirements and were eligible to receive PPP loans. These eight

certifications were false because, under applicable rules in effect at that time,

the applicant entities were ineligible to receive PPP loans because they were

affiliated entities that collectively employed more than 500 employees during

the relevant time period.

The United States declines to intervene as to all other claims, including claims
related to the allegation that Empire Roofing, Inc., an entity located in Fort Worth, Texas,
received two PPP loans.

The United States requests that the Relator’s Complaint, this Notice, the Proposed
Order, and the Court’s order granting the relief requested herein (if granted) be unsealed.
The United States asks that all other materials in this matter (including, but not limited to,
any applications and accompanying memoranda filed by the United States for an
extension of time in which to intervene or for any other reason) remain under seal and not
be made public or served on the defendants at any time because, in discussing the content

and extent of the United States’ investigation, such papers are provided by law to the

United States Notice of Election to Intervene in Part for Purposes of Settlement and to Decline to
Intervene in Part and Request to Unseal - Page 2
Case 3:22-cv-02@B Document 24 Filed 11/30/23 @ age 3of5 PagelD 89

Court alone for the sole purpose of evaluating whether the seal and time for making an
election to intervene should be extended.

Finally, the United States and Relator will file a Joint Stipulation of Voluntary
Dismissal under Federal Rule of Civil Procedure 41(a)(1)(A)(i1) within 30 days.

A proposed order accompanies this notice.

Respectfully submitted,

LEIGHA SIMONTON

UNITED es ATTO

rere Robbins

New York Bar No. 4836508
William C. Admussen

Illinois Bar No. 6335479
Assistant United States Attorneys
1100 Commerce Street, Third Floor
Dallas, Texas 75242-1699
Telephone: 214-659-8600
Facsimile: 214-659-8807
andrew.robbins@usdoj.gov
william.admussen@usdoj.gov

Attorneys for the United States of America

CERTIFICATE OF SERVICE

I hereby certify that on November 30, 2023, I served copies of this notice and the

proposed order on counsel for Relator.

ANDREW S. ROBBINS

Assistant United States Attorney

United States Notice of Election to Intervene in Part for Purposes of Settlement and to Decline to
Intervene in Part and Request to Unseal - Page 3
ORIGINAL

- Case 3:22-cv-020@B Document 24 Filed 11/30/23 @xs¢ 4of5 PagelD 90

SEALED

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

UNITED STATES OF AMERICA ex rei.
SIDESOLVE, LLC,

Plaintiffs,

V.

EMPIRE ROOFING, INC.; EMPIRE
ROOFING COMPANIES, INC.; EMPIRE
ROOFING OF OKLAHOMA, INC.;
EMPIRE ROOFING AND SHEET METAL,
INC.; SR DISPOSAL, LTD f/k/a EMPIRE
DISPOSAL, LTD; EMPIRE ROOFING
COMPANY SOUTHEAST, LLC; EMPIRE
ROOFING COMPANY OF GEORGIA,
LLC; RONNIE MCGLOTHLIN; SANDRA
SEDILLO-MCGLOTHLIN; AND TECTA
AMERICA CORP.,

Defendants.

Civil Action No. 3:22-cv-2060-B

FILED IN SEALED CASE

[PROPOSED] ORDER GRANTING THE UNITED STATES’ NOTICE OF
ELECTION TO INTERVENE IN PART FOR PURPOSES OF SETTLEMENT
AND TO DECLINE TO INTERVENE IN PART AND REQUEST TO UNSEAL

The United States having intervened in part in this action and having declined to

intervene in part in this action pursuant to the False Claims Act, 31 U.S.C. § 3730(b)(2)

and (4), the Court rules as follows:

[Proposed] Order Granting the United States’ Notice of Election to Intervene in Part for Purposes of
Settlement and to Decline to Intervene in Part and Request to Unseal - Page 1
- Case 3:22-cv-024@B Document 24 Filed 11/30/23 @age 5 of 5 PagelD 91

IT IS ORDERED that,
1. The relator’s complaint, the United States’ Notice of Election to Intervene in
Part for Purposes of Settlement and to Decline to Intervene in Part and Request
to Unseal, and this Order be unsealed;
2. all other papers or Orders on file in this matter shall remain under seal;
3. the seal be lifted on all other matters occurring in this action after the date of

this Order; and that all orders of this Court shall be sent to the United States.
SO ORDERED.

Dated this day of , 2023.

JANE J. BOYLE
UNITED STATES DISTRICT JUDGE

[Proposed] Order Granting the United States’ Notice of Election to Intervene in Part for Purposes of
Settlement and to Decline to Intervene in Part and Request to Unseal - Page 2


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