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Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 1 of 12 PageID: 75
U.S. Department of Justice
Un ited S tates Attorney's Office
District of N ew Jersey
970 Broad Street, 7,h Fl. Main: 973-645-2700
Newarh, New Jersey 07102 Direct: 973-645-2736
David. Sim wwuich@usdoj.gov
FILED UNDER SEAL & EX PARTE
February 27, 2026
Via Hand Delivery
Melissa E. Rhoads, Esq.
Clerk of the Court 0
United States District Court ~~
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Re: United States ex rel. [UNDER SEAL] v. [UNDER SEAL], -U
Civil Action No. 25-16211 (BRM)
Dear Ms. Rhoads:
I enclose for filing ex parte and under seal in the above-referenced case copies
each of the following documents:
1. The United States' notice of election to intervene for purposes of
effectuating settlement;
2. Proposed order; and
3. Certificate of service.
We would greatly appreciate receivmg a copy of the signed order m the
enclosed envelope.
Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 2 of 12 PageID: 76
Respectfully submitted,
TODD BLANCHE
U.S. Deputy Attorney General
PHILIP LAMPARELLO
Senior Counsel
Isl David V. Simunovich
By: David V. Simunovich
Assistant U.S. Attorney
Encl.
cc: Amy Gregory, Esq. - Relator's counsel (via email)
-2 -
Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 3 of 12 PageID: 77
TODD BLANCHE
U.S . Deputy Attorney General
PHILIP LAMPARELLO
Senior Counsel
DAVID V. SIMUNOVICH
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, NJ 07102
Tel. (973) 645-2736
da vid.sim unovich@usdoj.gov
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA ex rel.
VERITY INVESTIGATIONS, LLC,
HON. BRIAN R. MARTINOTTI
Plaintiffs,
Civil Action No. 25-16211
V.
FILED UNDER SEAL & EX PARTE
LYNRED USA INC. ,
Defendant.
THE UNITED STATES' NOTICE OF ELECTION TO INTERVENE FOR
PURPOSES OF EFFECTUATING SETTLEMENT
The United States, Relater Verity Investigations, LLC, and Defendant
Lynred USA Inc. ("Lynred"), have reached a settlement agreement t o resolve the
claims brought on behalf of the United States in this action. In light of this
agreement, and for the purpose of effectuating and formalizing that resolution,
pursuant to the False Claims Act, 31 U.S.C. §§ 3730(b)(2) and (4), the United States
respectfully advises the Court of its decision to intervene for the purposes of
settlement.
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Specifically, the United States intervenes in this action with respect to civil
claims predicated upon the following factual allegations (the "Covered Conduct"):
1. The Coronavirus Aid, Relief, and Economic Security ("CARES") Act
was a federal law enacted in or about March 2020 designed to
provide emergency financial assistance to millions of Americans
suffering economic effects caused by the COVID-19 pandemic. One
source of relief provided by the CARES Act was the authorization of
forgivable loans to small businesses for job retention and certain
other expenses, through a program referred to as the Paycheck
Protection Program ("PPP"). PPP loans were guaranteed by the
SBA and, if the loan proceeds were used for eligible expenses, the
SBA would forgive the loan balance and accrued interest.
11. To obtain a PPP loan, a qualifying business had to submit a PPP
loan application to an authorized lender. The PPP loan application
required the business, through its authorized representative, to
acknowledge the PPP rules and make certain affirmative
certifications that the applicant was eligible to obtain a PPP loan.
111. On or about February 18, 2021, Lynred applied for a PPP loan (the
"Second Draw PPP Loan"). At the time of its application, Defendant
employed approximately 18 people in the United States. In
addition, Lynred's two corporate affiliates, (i.e., Lynred S.A.S. and
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Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 5 of 12 PageID: 79
Lynred Asia-Pacific), employed more than 300 employees outside of
the United States (though not in China).
1v. At the time Lynred submitted its application for the Second Draw
PPP Loan, businesses with more than 300 employees were not
eligible for PPP loans. Applicants were instructed that the 300-
employee limit was inclusive of the applicant's affiliates. Under the
rules in effect at the time of Lynred's application, applicants were
required to count both U.S. and foreign affiliates' employees when
evaluating their eligibility.
v. In its application, Lynred certified that it was eligible for its loan
and that it employed no more than 300 employees. Lynred was not
eligible for its loan because, inclusive of its foreign affiliates, it had
more than 300 employees.
vi. Based on Lynred's certification of eligibility in its loan application,
a lender approved the Second Draw PPP Loan application and
issued a loan in the amount of $342,085. In addition, pursuant to
the PPP, the SBA paid the lender a $17,104 processing fee in
connection with the lender's issuance of the Second Draw PPP
Loan.
VIL Lynred applied for and received forgiveness of the Second Draw
PPP Loan, thereby extinguishing its liability for the $342,085
principal loan amount, as well as $2,338 in accrued interest.
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Under the terms of the settlement agreement among the parties, following
Lynred's payment of the settlement amount, the United States and the Relator will
file a Notice of Voluntary Dismissal with respect to all claims brought on behalf of
the United States against Lynred.
In light of the settlement agreement reached among the parties, the United
States does not presently intend to file a complaint in intervention but reserves the
right to seek leave to file such a complaint in the event that Lynred does not pay the
full settlement amount consistent with the terms of the settlement agreement.
Finally, the United States hereby requests that the Court unseal the
Relator's Complaint, this Notice of Intervention for Purposes of Effectuating
Settlement, and all subsequent filings following this Notice of Election.
The United States further requests that all other papers on file in this action
remain under seal because in discussing the content and extent of the United
States' investigation, such papers are provided by law to the Court alone for the sole
purpose of evaluating whether the seal and the time for making an election to
intervene should be extended.
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A proposed order accompanies this Notice.
Dated: Newark, New Jersey
February 27, 2026
Respectfully submitted,
TODD BLANCHE
U.S. Deputy Attorney General
PHILIP LAMPARELLO
Senior Counsel
By: / s I David V Simunovich
DAVID V. SIMUNOVICH
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, NJ 07102
Tel. (973) 645-2736
david.sim unovich@usdoj.gov
Attorneys for the United States
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Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 8 of 12 PageID: 82
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA ex rel.
VERITY INVESTIGATIONS, LLC,
HON. BRIAN R. MARTINOTTI
Plaintiffs,
Civil Action No. 25-16211
V.
FILED UNDER SEAL & EX PARTE
LYNRED USA INC. ,
Defendant.
[PROPOSED]
ORDER
The United States, pursuant to the False Claims Act, 31 U.S.C. §§ 3730(b)(2)
and (4), having intervened in the above-captioned matter for purposes of settlement
in this action, it is hereby:
ORDERED that the Relator's Complaint, the United States' Notice of
Intervention for Purposes of Effectuating Settlement, and this Order be unsealed;
and it is further
ORDERED the seal shall be lifted on all matters occurring in this action
after the date of this Order; and it is further
ORDERED that all other papers or Orders on file in this matter shall
remain under seal; and it is further
ORDERED the Clerk of the Court shall provide an executed copy of this
Order to counsel for the Government and counsel for the Relator.
Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 9 of 12 PageID: 83
IT IS SO ORDERED, this _ _ day of _ __ _ _ _ _ _ _ , 2026.
HON. BRIAN R. MARTINOTTI
United States District Judge
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Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 10 of 12 PageID: 84
TODD BLANCHE
U.S. Deputy Attorney General
PHILIP LAMPARELLO
Senior Counsel
DAVID V. SIMUNOVICH
Assistant United States Attorney
970 Broad Street, Suite 700
Newark, NJ 07102
Tel. (973) 645-2736
da vid. sim unovich@usdoj.gov
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
UNITED STATES OF AMERICA ex rel.
VERITY INVESTIGATIONS, LLC,
HON. BRIAN R. MARTINOTTI
Plaintiffs,
Civil Action No. 25-16211
V.
FILED UNDER SEAL & EX PAilTE
LYNRED USA INC. ,
Defendant.
CERTIFICATE OF SERVICE
I, Assistant U.S. Attorney David V. Simunovich, hereby certify that on
February 27, 2026, I caused copies of the Notice of Election to Intervene for
Purposes of Effectuating Settlement and a Proposed Order to be filed with the
Court via U.S. mail, with an electronic courtesy copy, and sent to Relator Verity
Investigations, LLC, through its counsel, Amy Gregory, Esq. , via email.
1
Case 2:25-cv-16211-BRM-CF Document 5 Filed 02/27/26 Page 11 of 12 PageID: 85
I swear that the foregoing statements are true and correct to the best of my
knowledge. I am aware that I am subject to penalty for any willful misstatement
herein.
Dated: Newark, New Jersey
February 27, 2026
Is I David V Simunovich
DAVID V. SIMUNOVICH
Assistant United States Attorney
2
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U.S. Department of Justice
United
D . • States Attorney's Offiice
zstrzct of New Jersey
970 Broad Street, Suite 700
Newark, New Jersey 07102-2535 SEALED
Official Business
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