DOJ Usao Wdny Press Release Alupress Pay 22 Million Resolve False Claims Act Allegations 2026 01 13

Summary

A press release in which U.S. Attorney Michael DiGiacomo announced that Alupress LLC, a manufacturer of automotive die casting components, agreed to pay approximately $2.2 million to resolve False Claims Act allegations that it improperly obtained Paycheck Protection Program loans from the U.S. Small Business Administration for which it was not eligible. The United States contends that in 2021 Alupress obtained a forgiven loan although it exceeded the size requirement. According to the release, Alupress was a wholly owned subsidiary of Alupress Group, in turn wholly owned by Technicon, a company based in Italy, and Technicon and its affiliates had over 300 employees when Alupress applied. The release states that the claims are allegations only and there has been no determination of liability.

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Full text

BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Alupress LLC, a manufacturer of automotive die casting components, agreed to pay approximately $2.2 million to resolve False Claims Act allegations of improperly obtained Paycheck Protection Program loans from the U.S. Small Business Administration for which the manufacturer was not eligible to receive.

In March 2020, Congress created the Paycheck Protection Program to provide emergency financial assistance to American small businesses suffering from the economic effects of the COVID-19 pandemic. Under the program, eligible small businesses could receive forgivable loans guaranteed by the SBA provided they met various eligibility requirements. One such requirement limited the total number of employees an applicant company could employ, which included employees associated with the applicant company’s foreign affiliates.

The United States contends, in 2021, that Alupress obtained a forgiven loan that it was not eligible for because it exceeded the size requirement. When Alupress obtained the loan, it was a wholly owned subsidiary of Alupress Group, which in turn was wholly owned by Technicon, a company based in Italy with multiple subsidiaries worldwide. Technicon and its affiliates, including Alupress Group and Alupress LLC, had over 300 employees at the time Alupress applied for the loan, thereby exceeding the total number of employees the company could have.

“The Paycheck Protection Program was designed to support small business during the COVID-19 Pandemic,” said U.S. Attorney DiGiacomo. “This office continues to work tirelessly to recover taxpayer dollars that were improperly obtained when large companies, like Alupress, received loans by skirting the eligibility rules.”

This matter was handled by Assistant U.S. Attorney David M. Coriell and USAO Investigator Margaret McFarland, with assistance from the SBA’s Office of General Counsel.

Individuals with information about allegations involving fraud, waste and abuse associated with COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) 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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