Charlotte Company Agrees to Pay Nearly $1.2 Million to Resolve Allegations It Improperly Obtained a PPP Loan — Okaya Shinnichi Corporation of America, False Claims Act
Summary
A press release announcing that Okaya Shinnichi Corporation of America (Okaya), a steel tubing manufacturer located in Charlotte, agreed to pay $1,196,421.68 to resolve allegations that it violated the False Claims Act by providing false information to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible. The settlement resolves allegations that Okaya misrepresented that it had less than 300 employees among all affiliates on its application for a second round PPP loan of $478,568.67, when, the lawsuit alleged, it was a U.S. subsidiary of two Japanese corporations. The matter arose from a qui tam lawsuit captioned U.S. ex rel. Verity Investigations, LLC v. Okaya Shinnichi Corporation of America, W.D.N.C. Case No. 3:25-cv-232. The release states that there has been no determination of liability.
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“Charlotte Company Agrees to Pay Nearly $1.2 Million to Resolve Allegations It Improperly Obtained a PPP Loan — Okaya Shinnichi Corporation of America, False Claims Act.”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/doj-usao-wdnc-press-release-charlotte-company-agrees-pay-nearly-12-mil-b0feace2aa/
, SHA-256 14cac3701f6f5ac3849971b69014c5dd012e20627c26f7fccd9c300a063254ff.Full text
CHARLOTTE, N.C. –Okaya Shinnichi Corporation of America (Okaya), a steel tubing manufacturer located in Charlotte, has agreed to pay $1,196,421.68 to resolve allegations that it violated the False Claims Act by providing false information to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible, the U.S. Attorney’s Office announced today. This settlement resolves allegations that Okaya misrepresented that it was a small business with less than 300 employees among all affiliates on its application for a second round PPP loan of $478,568.67. Instead, the lawsuit alleged, Okaya was the jointly held U.S. subsidiary of two Japanese corporations, and had multiple affiliates worldwide, totaling well over the 300-employee limit for second round PPP loans. This matter arose from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Verity Investigations, LLC v. Okaya Shinnichi Corporation of America ; W.D.N.C. Case No. 3:25-cv-232. The government’s investigation was led by Assistant U.S. Attorney Seth Johnson. Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The claims resolved by the settlement are allegations only. There has been no determination of liability
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