Louisiana Company Settles Matter Alleging Receipt of Improper CARES Act Loans for Over $2.9 Million

Summary

CAN USA, Inc., an inspection, repair and maintenance company based in Harvey, Louisiana, with offices in Hackensack, New Jersey, agreed to pay the United States $2,916,900 to settle False Claims Act allegations, U.S. Attorney Robert Frazer announced. According to the complaint and the government's contentions, in January 2021 it applied for and received a $2 million Paycheck Protection Program loan while certifying it employed no more than 300 people, though with the employees of its foreign affiliates it had more than 300. It then obtained forgiveness of the full loan plus accrued interest. The relator, Clearwater Metrics LLC, receives $291,690 in the qui tam case, Civil Action No. 26-3469 (D.N.J.). The claims resolved are allegations only; there has been no determination of liability.

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NEWARK, N.J. – A company providing inspection, repair and maintenance services based in Harvey, Louisiana, with offices in Hackensack, New Jersey, entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a Paycheck Protection Program (PPP) loan to which it was not entitled, U.S. Attorney Robert Frazer announced. According to the allegations in the complaint and the contentions of the United States in the settlement agreement: In January 2021, CAN USA, Inc. applied for and received a $2 million PPP loan. Under the eligibility rules in effect at that time, businesses with more than 300 employees were not eligible for PPP loans. Applicants were instructed that the 300-employee limit included employees working for the applicant’s affiliates. In its loan application, CAN USA certified that it was eligible for the loan and that it employed no more than 300 employees. However, CAN USA was not eligible for its loan because, inclusive of employees working for the company’s foreign affiliates, CAN USA had more than 300 employees. After receiving the PPP loan, CAN USA sought and received forgiveness of the total amount of the loan, plus accrued interest. CAN USA fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, CAN USA will pay the United States $2,916,900. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $291,690 as the share. The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud and Opioid Enforcement Unit in Newark. The qui tam case is captioned United States ex rel. Clearwater Metrics LLC v. CAN USA Inc. , Civil Action No. 26-3469 (D.N.J.). The claims resolved by the settlement are allegations only, and there has been no determination of liability. ### canusa.agreement.pdf Counsel for CAN USA, Inc.: Duris Holmes, Esq., New Orleans, LA Counsel for Relator ClearWater Metrics, LLC: Jason Marcus, Esq., Atlanta, GA

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