Complaint — GNGH2 v. Allied Crawford (Petersburg) Inc. (E.D. Va.)

Summary

A qui tam Complaint Under the False Claims Act in United States of America ex rel. GNGH2 Inc. v. Allied Crawford (Petersburg) Inc. and other Allied Crawford companies, Case 3:24-cv-00610-MHL, in the United States District Court for the Eastern District of Virginia, Richmond Division, filed August 27, 2024. Relator GNGH2 Inc. alleges that the defendants, which assemble and deliver steel products, each received a second draw PPP loan on 3/12/21, including $399,835 to AC Petersburg and $422,215 to AC Atlanta, after certifying on Form 2483-SD that they conformed to applicable size standards. It alleges that, combined with each other and their affiliates, the defendants did not conform to those standards, in violation of 31 U.S.C. Section 3729(a)(1)(B). A table sets out the principal and interest, processing fees and triple damages sought against each defendant.

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“Complaint — GNGH2 v. Allied Crawford (Petersburg) Inc. (E.D. Va.).” Original at archive.org. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-no-3-24-cv-00610-dkt-1-e-d-va-659c85db42/, SHA-256 e202e7937915875a058dff79f8f3b1f3f5dcf0fa0a1a9e3de02055f80d7e1221.

Full text

Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 1 of 7 PageID# 102

fp
D ft [1
Damon R. Miller (VSB #98308) br
3998 Fair Ridge Dr., #250 Li
AUG 2 7 2024
Fairfax, VA 22031
CLEKK
(703)591-9829 ' ■ 'URT

dmiller@benglasslaw.com

United States District Court
Eastern District of Virginia - Richmond Division

) TO BE FILED UNDER
United States of America ex rel. ) SEAL PURSUANT TO
GNGH2 Inc., ) 31 U.S.C. 3730(b)(2)
Plaintiff-Relator, )
)
- against - ) Case No. 10
)
ALLIED CRAWFORD (PETERSBURG) INC.; ) Complaint Under the
ALLIED CRAWFORD (ATLANTA) INC; ) False Claims Act
ALLIED CRAWFORD (JACKSON) INC.; )
ALLIED CRAWFORD (CINCINNATI) INC.; )
ALLIED CRAWFORD (HARRISBURG) INC.; )
ALLIED CRAWFORD (CHARLESTON) INC.; &)
ALLIED CRAWFORD (NASHVILLE) INC., )
)
Defendants. )

Plaintiff-Relator, complaining of the Defendants by its attorney, Damian R.

Miller, respectfully sets forth and alleges as follows:

I. Nature of the Case

This is a false claims act claim. The Qui Tam Plaintiff and Relator, GNGH2

Inc. ("Relator"), alleges that the Defendant fraudulently obtained CARES Act

disaster relief by means of fraudulent certifications of eligibility. As set forth in
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 2 of 7 PageID# 103

more detail below, second-round PPP funding is barred to entities which exceed

applicable size standards.

II. Parties

2. Defendant ALLIED CRAWFORD (PETERSBURG) INC. ("AC

Petersburg") is a Virginia business corporation with a principal place of business in

Petersburg, Virginia.

2a. Defendant ALLIED CRAWFORD (ATLANTA) INC. "AC Atlanta") is a

Georgia business corporation with a principal place of business in Cobb County,

Georgia.

2b. Defendant ALLIED CRAWFORD (JACKSON) INC. ("AC Jackson") is a

Mississippi business corporation with a principal place of business in Hinds

County, Mississippi.

2c. Defendant ALLIED CRAWFORD (CINCINNATI) INC. ("AC Cincinatti")

is an Ohio business corporation with a principal place of business in Warren

County, Ohio.

2d. Defendant ALLIED CRAWFORD (HARRISBURG) INC. ("AC

Harrisburg") is a Pennsylvania business corporation with a principal place of

business in Dauphin County, Pennsylvania.

2
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 3 of 7 PageID# 104

2e.
Defendant ALLIED CRAWFORD (CHARLESTON) INC. ("AC

Charleston") is a South Carolina business corporation with a principal place of

business in Charleston County, South Carolina.

2f
Defendant ALLIED CRAWFORD (NASHVILLE) INC. ("AC Nashville") is

a Tennessee business corporation with a principal place of business in Davidson

County, Tennessee.

3.
The Relator, GNGH2 Inc. ("Relator" or "Plaintiff) is a New Jersey

corporation with a principal office in Bergen County, New Jersey.

III. Compliance with Requirements of Suit

4. This matter will be filed under seal pursuant to 31 U.S.C. Section 3730(b)

and at or about the same time, a copy of the Complaint, any Sealing Order, and
Relator's disclosure of evidence will be served on the Department of Justice and

the United States Attorney for the District in which this matter has been filed.

5.
Relator will not serve the Complaint or any other papers in this matter until

and unless it becomes unsealed. Thus, if the Complaint is served on the

Defendant, it means that the matter has been duly unsealed.
IV. Jurisdiction and Venue

6. This Court has jurisdiction pursuant to 31 U.S.C. Section 3732(a) which

provides that this type of action may be brought in any district where any

Defendant resides or transacts business. In this case. Defendant

3
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 4 of 7 PageID# 105

AC Petersburg maintains its principal office at 2021 Bessemer Road, Petersburg

Virginia 23805.

V. Background

7. Throughout most of 2020 and continuing into 2021, the United States was

faced with a large scale outbreak of the virus commonly known as "Coronavirus

and ''COVID-19." (the "Coronavirus Epidemic").

8. In addition to the Coronavirus Epidemic itself, the United States was faced

with large scale outbreaks of panic and hysteria as a result of the Coronavirus

Epidemic.

9. All of the above has resulted in major economic disruption and as a result

Congress enacted the Coronavirus Aid, Relief, and Economic Security Act,

commonly known as the "CARES Act.

10.
The CARES Act contains a provision which permitted qualifying business

which were affected by the foregoing disruption to obtain forgivable disaster loans.

11. The CARES Act was subsequently amended to provide for a second round

of disaster funding. Significantly, an applicant is ineligible for such funding if it

exceeds applicable size standards.

[continued on next page]

4
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 5 of 7 PageID# 106

12. The Defendants in this matter assemble and deliver steel products. They

received second draw PPP disaster relief as follows:

Defendant Date Amount Loan # Forgiven

AC Petersburg 3/12/21 $399,835 9762638500 8/26/2021

AC Atlanta 3/12/21 $422,215 1193958603 9/1/2021

AC Jackson 3/12/21 $336,192 9709428508 9/29/2021

AC Cincinnati 3/12/21 $413,150 9819618507 9/29/2021

AC Harrisburg 3/12/21 $380,655 9895078502 8/26/2021

ACCharlston 3/12/21 $353,702 1505358600 9/1/2021

AC Nashville 3/12/21 $399,695 1003158610 8/26/2021

13. Thus, on or about March 12, 2021, each of the Defendants completed Form

2483-SD which required that such Defendant conformed to applicable size

standards.

14. These certifications was false when made as set forth below.

15. At all times relevant to this matter, the Defendants, when combined with

each other and applicable affiliates, did not confonn to applicable size standards.

16. Moreover, the foregoing information is available on the websites and/or

filings of the Defendants and/or their affiliates.

17. Thus, Defendant's authorized representative must have been either aware of

this information or reckless in regards to same.

5
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 6 of 7 PageID# 107

18. Thus, Defendants made a fraudulent representation when they completed

form 2483-SD and certified eligibility in respect of the above matters.

19. As a result of these statements, the Defendant received (and the United

States paid) substantial funds to which it would not otherwise have been entitled.

VI. (Count I) Violation of the False Claims Act

20. The False Claims Act imposes liability on a person or entity who

knowingly makes, uses, or causes to be made or used, a false record or statement

material to a false or fraudulent claim" 31 U.S.C. Section 3729(a)(1)(B)

21. The Courts have held that this can include false statements regarding

eligibility to participate in a program. See United States ex rel Kirk v. Schindler

Elevator Corp., 601 F.3d 94, 116 (2d Cir. 2010), rev'd on other grounds, 131 S.Ct.

1885 (2011) ("[C]laims may be false even though the services are provided as

claimed if, for example, the claimant is ineligible to participate in the program.")

22. Thus, the Defendants' certifications of eligibility violated the False Claims

Act because they were false and required for eligibility for disaster relief

VII. Relief Sought

23. On behalf of the government, Relator is seeking judgment for triple damages

and civil penalties set forth in 31 U.S.C. Section 3729.

6
Case 3:24-cv-00610-MHL Document 1 Filed 08/27/24 Page 7 of 7 PageID# 108

24. According, Relator seeks judgment in favor of the United States and against

each Defendant as set forth below:

Defendant Principal & Interest Processing Fees Triple Damages

AC Petersburg $401,620.56 $11,995.05 $1,240,846.83

AC Atlanta $424,169.91 $12,666.45 $1,310,509.08

AC Jackson $338,006.52 $16,809.60 $1,064,448.36

AC Cincinnati $415,379.88 $12,394.50 $1,283,323.14

AC Harrisburg $382,354.91 $11,419.65 $1,181,323.68

AC Charlston $355,339.69 $10,611.06 $1,097,852.25

AC Nashville $401,479.94 $11,990.85 $1,240,412.37

25. Relator also seeks judgment for costs, attorney's fees, interest, penalties, an

appropriate qui tarn award, and such other relief as the Court deems just.

Respectfully submitted.

Damon Miller, Attorney at Law (VSB #98308)
Attorney for Relator
GNGH2 Inc.

3998 Fair Ridge Dr., #250
Fairfax, VA 22031
(703) 591-9829
dmiller@benglasslaw.com

Dated: Fairfax, Virginia
August 26, 2024

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