Letter to Heidi D. Campbell, Clerk, To Be Filed Under Seal Pursuant to 31 USC § 3730(b)(2) — United States of America ex rel. GNGH2 Inc. v. Speridian Technologies LLC, et al., Case No. 24cv628-SH (Dkt. 9, N.D. Okla.)

Summary

Relator GNGH2 Inc., through attorney David Abrams, files an amended False Claims Act complaint under seal in the Northern District of Oklahoma, Case No. 24cv628-SH, against Speridian Technologies LLC and related companies including BenefitAlign LLC, Xelleration LLC, TrueCoverage LLC and Helix Business Solutions LLC. It alleges the defendants falsely certified on second-draw forms 2483-SD that, combined with affiliates, they had no more than 300 employees, while belonging to an international concern called Speridian with an employee count well above 300. The seven listed loans run from $208,989 for TrueCoverage to $2,000,000 for Speridian, and the table shows each forgiven; 6 of the 7 were processed by BOK Financial in Tulsa. The relator seeks triple damages, including a $6,233,499.99 judgment against Speridian. The complaint is dated February 18, 2025.

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aS: Cech) 1 Madge 1

ue VE r L

David Abrams, Attorney at Law

PO Box 3353 Church Street Station F [ L EB D

New York, NY 10008

212-897-5821 dnabrams@gmail.com FEB 2 1 2025
Heidi D. Campbell, Clerk
United States District Court U.S. DISTRICT COURT

Northern District of Oklahoma

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. 24cv628-SH

SPERIDIAN TECHNOLOGIES LLC,

BENEFITALIGN LLC,

XELLERATION LLC,

TRUECOVERAGE LLC,

SPERIDIAN TECHNOLOGIES LLC as
successor to EDATAWORLD LLC,

BUSINESS ADVANTAGE
CONSULTING INC., and

HELIX BUSINESS SOLUTIONS LLC,

Complaint Under the False
Claims Act (Amended)

Defendants.

Plaintiff-Relator, complaining of the Defendants by its attorney, David
Abrams, Attorney at Law, respectfully sets forth and alleges as follows:
I. Nature of the Case
1. This is a false claims act claim. The Qui Tam Plaintiff and Relator, GNGH2
Inc. ("Relator"), alleges that the Defendants fraudulently obtained CARES Act

disaster relief by means of fraudulent certifications of eligibility. As set forth in
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more detail below, PPP funding is barred to entities which exceed the applicable
size standards.

II. ‘Parties

2. Defendant SPERIDIAN TECHNOLOGIES LLC ("Speridian") is a
Delaware limited liability company with a principal place of business in Bernalillo
County, New Mexico.

2a. Defendant BENEFITALIGN LLC ("BenefitAlign") is a New Mexico
limited liability company with a principal place of business in Bernalillo County,
New Mexico.

2b. Defendant XELLERATION LLC ("Xelleration") is a California limited
liability company with a principal place of business in Orange County, California.
2c. Defendant TRUECOVERAGE LLC ("TrueCoverage") is a Delaware limited
liability company with a principal place of business in the State of New Mexico,
County of Bernalillo.

2d. Defendant Speridian is the successor by merger to Defendant EDataWorld
LLC, which was a Washington limited liability company at the time of the events
described herein. In its capacity as successor by merger to EDataWorld LLC,

Speridian is referred to herein as "EDataWorld."
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2e. Defendant BUSINESS ADVANTAGE CONSULTING INC. ("Business
Advantage") is a California business corporation with a principal place of business
in the State of California, County of Sacramento.

2f. Defendant Helix Business Solutions LLC ("Helix") is a Tennessee limited
liability company with a principal place of business in the State of Tennessee,
County of Shelby.

2. The Relator, GNGH2 Inc. ("Relator" or "Plaintiff") is a New Jersey
corporation with a principal office in Bergen County, New Jersey.

III Compliance with Requirements of Suit

4. This matter was filed under seal pursuant to 31 U.S.C. Section 3730(b) and
at or about the same time, a copy of the Complaint, any Sealing Order, and
Relator's disclosure of evidence was served on the Department of Justice and the
United States Attorney for the District in which this matter has been filed.

5. Relator will not serve the Amended Complaint or any other papers in this
matter until and unless it becomes unsealed. Thus, if the Amended Complaint is
served on the Defendant, it means that the matter has been duly unsealed.

IV. Jurisdiction and Venue

6. 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, 6 of the 7 loans at issue in
this matter were processed by BOK Financial, One Williams Center, Tulsa
Oklahoma, 74172-0140
V. Background
7. 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").

8. 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.

9. All of the above has 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."

10. The CARES Act contains a provision which permitted qualifying business
which were affected by the foregoing disruption to obtain forgivable disaster loans.
11. 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 the applicable size standards, i.e. if

when combined with its affiliates it has more than 300 employees.
. of 10

12. The Defendants in this matter are part of an international concern which

provides IT services. They received the following second-draw disaster relief:

Defendant Date Amount Loan # Forgiven
Speridian 3/13/21 $2,000,000 1340098606 2/1/22
BenefitAlign 2/17/21 $293,462.50 9506288405 1/11/22
Xelleration 2/13/21 $632,949 8391078406 1/12/22
TrueCoverage 2/17/21 $208,989 9798128404 1/12/22
EDataWorld 2/19/21 $461,767.50 1968258503 1/12/22

Business Advantage 2/17/21 $345,419 9428958409 1/11/22
Helix 3/20/21 $954,171.73 4807258604 11/8/21
13. Thus, on or about the above dates, Defendants had to complete the
applicable forms 2483-SD in respect of the above loans.

14. In connection with these forms, the Defendants had to certify that they
complied with applicable size standards, i.e. that when combined with their
affiliates they did not have more than 300 employees.

15. These certifications were false when made as set forth below.

16. Atall times relevant to this matter, the Defendants were part of an

international concern called "Speridian" with an employee count well above 300
persons. The foregoing is set forth in more detail in Relator's disclosure statement
of January 2, 2025 which is incorporated herein by reference.

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

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

19. Thus, Defendants made fraudulent representations when they completed the
application forms for the loans.

20. Asa result of these statements, the Defendants received (and the United
States paid) substantial funds to which they 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. Section 3729(a)(1)(B)

22. The 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.")
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23. Thus, the Defendants' certifications of eligibility violated the False Claims
Act because they were false, fraudulent, and required for eligibility for disaster

relief.

VII. 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. Section 3729.

25. Accordingly, Relator seeks judgment as follows against the Defendants and
in favor of the United States:

Defendant Principal Interest Fees Judgment
Speridian $2,000,000 $17833.33 $60,000 $6,233,499.99
BenefitAlign $293,462.50 $2,624.86 $14673.12 $932,281.44
Xelleration $632,949 $5749.29 $18,988.47 $1,973,060.28
TrueCoverage $208,989 $1875.10 $10,449.45 $663,940.65

EDataWorld $461,767.50 $4,130.25 $13,853.02 $1,439,252.31

Business $345,419 $3,089.58 $17,270.95 $1,097,338.59
Advantage
Helix $954,171.73 $5,960.31 $28,625.15 $2,966,271.57

[continued on next page]
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26. Additionally, Relator seeks appropriate costs, attorney's fees, interest, civil
penalties, an appropriate qui tam award, and such other and further relief as the

Court deems just.

Respectfully submitted,

David Abrams, Attorney at Law (NY 3051604)
Attorney for Relator
GNGH2 Inc.

PO Box 3353 Church Street Station

New York, NY 10008

Tel. 212-897-5821 dnabrams@gmail.com
Fax 212-897-5811

Dated: February 18, 2025
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Express

Extremely Urgent

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