Complaint — GNGH2 v. VSoft Corporation (W.D.N.C.)

Summary

A qui tam complaint under the False Claims Act, United States of America ex rel. GNGH2 Inc. v. VSoft Corporation, No. 3:24-cv-00999, in the U.S. District Court for the Western District of North Carolina, Charlotte Division, filed under seal November 13, 2024 as Document 2. The relator alleges that VSoft, a software developer and a subsidiary of VSoft Technologies Private Limited out of India, falsely certified on Form 2483-SD that it met applicable size standards and received a second draw PPP loan of $1,259,732 on 2/1/2021, forgiven 1/21/22. It states that the United States paid some $1,271,880.65 in principal and interest and $37,791.96 in processing fees. The complaint seeks judgment of $3,929,017.83 plus penalties and a qui tam award, and is signed by Graham Pitman of Wyche, P.A.

Summary drafted by a model from the text of the original file linked on this page and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Text recognized from a scanned document; may contain errors.

PILED
CHARLOTTE, NC

FOR THE WESTERN DISTRICT OF NORTH CAROLINA ;
CHARLOTTE DIVISION
) TO BE FILED UNDER
United States of America ex rel. ) SEAL PURSUANT TO
GNGH2 Inc., ) 31 USC § 3730(b)(2)
Plaintiff-Relator, )
)
- against - ) Case No. 3:249-CV- 9494- FDW
)
VSOFT CORPORATION, )
)
Defendant. )
)

Complaint Under the False Claims Act, 31 U.S.C. 8§ 3729 et seq.

1. Qui tam Relator GNGH2 Inc., by and through counsel, individually and
on behalf of the United States of America files this Complaint against VSOFT
CORPORATION (“Defendant” or “VSOFT CORPORATION”) to recover
damages, penalties, and attorney’s fees for violation of the False Claims Act, 31
U.S.C. §§ 3729 et seq.

I. Nature of the Case

2. 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
more detail below, second-round PPP funding is barred to entities which exceed

certain statutory size standards.
II. Parties

3. VSOFT CORPORATION is a Georgia business corporation with a
principal place of business in Gwinnett County, North Carolina.

4. The Relator, GNGHz2 Inc. (“Relator” or “Plaintiff’) is a New Jersey
corporation with a principal office in Bergen County, New Jersey.

III. Compliance with Requirements of Suit

5. This matter will be filed under seal pursuant to 31 U.S.C. § 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.

6. 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

7. 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, the loans at issue were

processed through Bank of America in Charlotte, North Carolina.

Case 3:24-cv-00999-FDW-DCK Desument 2 Filed 11/13/24 Page 2of6
Vv. Background

8. 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”).

9. 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.

10. Allofthe above 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.”

11. The CARES Act contains a provision which permits qualifying
business which were affected by the foregoing disruption to obtain forgivable
disaster loans.

12. The CARES Act was subsequently amended to provide for a second
round of disaster funding. Significantly, an applicant is ineligible for such funding
if, when combined with its affiliates, it exceeds applicable size standards.

13. The Defendant in this matter is a firm which develops software. It
received second draw PPP disaster relief as follows:

Date Amount Loan # Forgiven

2/1/2021 $1,259,732 1287728409 1/21/22

Case 3:24-cv-00999-FDW-DCK Dotument 2 Filed 11/13/24 Page 3of6
14. Thus, on or about February 1, 2021, Defendant completed Form 2483-
SD which required it to certify that it met applicable size standards.

15. This certification was false when made as set forth below.

16. At all times relevant to this matter, the Defendant was a subsidiary of
an entity known as VSoft Technologies Private Limited out of India. The Defendant
and its affiliates did not conform to the SBA’s applicable size standards in
contradiction to the certification on the application.

17. Moreover, the foregoing information is available on the websites of the
Defendant and/or its corporate parent.

18. Thus, Defendant’s authorized representative must have been either
aware of this information or reckless in regards to same.

19. Thus, Defendant made a fraudulent representation when it completed
Form 2483-SD and certified eligibility in respect of the above matters.

20. Asaresult 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

21. 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. § 3729(a)(1)(B).

Case 3:24-cv-00999-FDW-DCK Dogument 2 Filed 11/13/24 Page 4of6
22. 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.”).

23. Thus, the Defendant’s certifications of eligibility violated the False
Claims Act because they were false and required for eligibility for disaster relief.

VIL. Relief Sought

24. On behalf of the government, Relator is seeking judgment for triple
damages and civil penalties set forth in 31 U.S.C. § 3729.

25. The United States paid some $1,271,880.65 in principal and interest in
respect of the above loan.

26. Additionally, the United States paid $37,791.96 in processing fees in
respect of the above loan.

27. Accordingly, Relator seeks judgment in the amount of $3,929,017.83
against the Defendant and in favor of the United States, together with costs,
attorney’s fees, interest, civil penalties, an appropriate qui tam award, and such other

and further relief as the Court deems just.

Case 3:24-cv-00999-FDW-DCK Dotument 2 Filed 11/13/24 Page5of6
Respectfully submitted,

WYCHE, P.A.

s/ Graham Pitman

Graham Pitman (N.C. State Bar No. 61191)
Post Office Box 728

Greenville, South Carolina 29602-0728
Telephone: (864) 242-8200
gpitman@wyche.com

Counsel for Plaintiff-Relator

Dated: November 13, 2024


File and source

File

2-qui-tam-complaint-under-the-false-claims-act-united-states-e.pdf

Size

223,785 bytes

SHA-256

2af64f72b02c662987d5ebdf7881f836547c9fd3381aa340d693d72961c91309

Our copy

2-qui-tam-complaint-under-the-false-claims-act-united-states-e.pdf

Original

archive.org