Three companies settle allegations they applied for and received pandemic related loans that were illegal
Summary
Three companies agreed to pay a total of more than $5.4 million to settle allegations that they applied for and accepted Paycheck Protection Program loans for which they were not qualified, the U.S. Attorney's Office for the Western District of Washington announced on December 3, 2025. Lotte Duty Free Guam LLC, which operates a duty-free store at the Guam airport, will pay $3,437,549; it claimed fewer than 500 employees, but the store is part of a much larger company. An Everett, Washington subsidiary of UMBRAGROUP S.p.A will pay $1,424,996 over allegations it had too many employees to qualify. Podworks Corporation will pay $632,958 after a relator alleged in April 2025 that it did not qualify because some of its business involves the sale of cannabis, illegal under federal law. The release says the settlements are not an admission of guilt.
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Press Release Three companies settle allegations they applied for and received pandemic related loans that were illegal Wednesday, December 3, 2025 For Immediate Release U.S. Attorney's Office, Western District of Washington Two companies had too many employees to qualify and one was engaged in cannabis sales which is disqualifying Seattle – Three different companies settled allegations they applied for and accepted millions of dollars in pandemic loans for which they were not qualified, announced U.S. Attorney Charles Neil Floyd. The companies have agreed to pay back a total of more than $5.4 million in restitution and penalties. The settlements are not an admission of guilt. The first settlement payment is from Lotte Duty Free Guam LLC. A division of Lotte Hotel Holdings USA LLC. According to the settlement agreement, Lotte Duty Free Guam LLC received two Small Business Administration (SBA) Paycheck Protection Program (PPP) loans. In its application for the loans, Lotte -which operates a duty-free store at the Guam airport, claimed to have fewer than 500 employees making them eligible for the loans. However, the Guam store is part of a much larger company which has too many employees to qualify for the loans. Lotte will pay $3,437,549 to resolve the matter. An Everett, Washington company that is a subsidiary of multinational aerospace conglomerate UMBRAGROUP S.p.A will pay $1,424,996 to resolve allegations it had too many employees to qualify for the SBA PPP loan it received. Finally, Podworks Corporation will pay the government $632,958 for an SBA PPP loan the company received. In April 2025, a relator filed suit in U.S. District Court in Seattle alleging that Podworks did not qualify for the PPP loan because some of its business involves the sale of cannabis which is illegal under federal law. The settlement resolves the allegation. These civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. These resolutions were negotiated by Assistant United States Attorneys Matt Waldrop and Kayla Stahman. Contact Press contact for the U.S. Attorney’s Office is Communications Director Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov . Updated December 3, 2025 Topics COVID-Related Fraud False Claims Act Component USAO - Washington, Western Related Content Press Release Final member of COVID rental assistance fraud ring convicted at trial of wire fraud and money laundering Seattle – The final defendant of a six-defendant fraud scheme that submitted fraudulent applications seeking more than $6.8 million in COVID benefits was convicted late yesterday in U.S. District Court... August 7, 2026 Press Release DOJ and Seattle-based FidaLab, LLC settle allegations it inflated bills to government health care programs Seattle – A Seattle medical testing laboratory will pay the government $2 million to resolve allegations that it illegally overbilled government health care programs, announced U.S. Attorney Charles Neil Floyd. January 12, 2026 Press Release Indian national sentenced to prison for Medicare fraud scheme that stole more than $1 million in taxpayer funds Seattle – An Indian national convicted of health care fraud was sentenced today in in U.S. District Court in Seattle to two years in prison, announced U.S. Attorney Charles Neil... December 2, 2025
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