Grubman Warner Berry, "Home Health Agency Will pay Nearly $400k to Resolve FCA Allegations Brought by Serial Relator"
Summary
This Oct 14, 2024 post by Chilivis Grubman reports a DOJ announcement that home health agency Allstar Health Providers Inc. will pay $399,990 to resolve allegations of violating the False Claims Act by failing to comply with Paycheck Protection Program loan rules. According to the DOJ, Allstar Health and its owner, Maria Chua, submitted two PPP loan applications in May 2020 despite certifying that the company would not apply for more than one loan, and Allstar Health failed to repay the second loan. The settlement amount includes $199,955 in restitution, and the relator, attorney J. Bryan Quesenberry, who brought the matter under the qui tam provisions, will receive $59,998.50. The post says Quesenberry has filed dozens of qui tam actions alleging duplicate PPP loans and quotes U.S. Attorney Martin Estrada for the Central District of California.
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False Claims Act Home Health Agency Will pay Nearly $400k to Resolve FCA Allegations Brought by Serial Relator Share This: Oct 14, 2024 The DOJ announced home health agency, Allstar Health Providers Inc., will pay $399,990 to resolve allegations of violating the False Claims Act (FCA) by failing to comply with Paycheck Protection Program (PPP) loan rules. This matter was initiated under the qui tam provisions of the FCA, which allows private parties to bring claims on behalf of the United States, by attorney J. Bryan Quesenberry. Quesenberry, known for bringing qui tam matters, will receive approximately $60,000 in connection with the settlement . Congress established the PPP, under the Coronavirus Aid, Relief and Economic Security (CARES), to support small businesses during the COVID-19 pandemic. PPP loans were administered by the Small Business Administration (SBA), and borrowers were required to certify compliance before applying. PPP borrowers were specifically required to certify that they would not receive more than one PPP loan in 2020. According to the DOJ, Allstar Health and its owner, Maria Chua, submitted two PPP loans applications in May 2020 despite certifying that the company would not apply for more than one loan. The SBA purchased the loan guaranty for both loans and Allstar Health failed to repay the second PPP. Consequently, the government alleged that Allstar Health, and its owner, knowingly submitted false claims to the government in violation of the FCA. Allstar Health and its owner will pay $399,990 to the government by November 2024. The settlement amount includes $199,955 in restitution. In turn, the government will pay Relator, attorney J. Bryan Quesenberry, $59,998.50. Quesenberry has filed dozens of qui tam actions that alleged companies have applied and received duplicate PPP loans in violation of the FCA. In February 2023, the government settled three matters brought by Quesenberry. Upon announcing the Allstar settlement, U.S. Attorney Martin Estrada for the Central District of California commented “[t]hose who violate the law by fraudulently receiving and retaining PPP loans will be held accountable.” The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today. More News Get in Touch With Us For more information or to arrange a consultation, please contact us by telephone at (404) 233-4171 or online by submitting the form below. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship nor create an expectancy of a potential attorney-client relationship. Do not submit information which is confidential or time sensitive, as it may not be treated as such.
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