U.S. Attorney's Office, Virginia, Eastern, "Medical group agrees to pay $2.8M to settle False Claims Act allegations" (April 2, 2025)
Summary
Press release of April 2, 2025 from the United States Attorney's Office for the Eastern District of Virginia, issued from Alexandria, announcing that Fairfax Radiological Consultants, PLLC, formerly Fairfax Radiological Consultants, P.C., agreed to pay $2,881,260 to settle False Claims Act allegations that it falsely reported payroll costs to obtain full forgiveness of a Paycheck Protection Program loan. The practice employed over 500 people in 2019 and used that payroll to apply for a $6.8 million loan in April 2020, when it employed fewer than 100. In its April 2021 forgiveness application it allegedly misstated eligible payroll costs for 98 employees, obtaining full forgiveness when, the United States alleged, it was entitled to forgiveness of only $4,945,860. The civil claims settled are allegations only.
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“U.S. Attorney's Office, Virginia, Eastern, ‘Medical group agrees to pay $2.8M to settle False Claims Act allegations’ (April 2, 2025).”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-attorney-s-office-virginia-eastern-medical-group-agrees-to-pay-2-8-c8a452f178/
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ALEXANDRIA, Va. – Fairfax Radiological Consultants, PLLC formerly known as Fairfax Radiological Consultants, P.C. (FRC), of Fairfax, agreed to pay $2,881,260 to settle False Claims Act allegations that it falsely reported its payroll costs to receive full forgiveness of a $6.7 million Paycheck Protection Program (PPP) loan. The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to qualify for the loan amount and for later loan forgiveness. In 2019, FRC employed over 500 individuals. Using its 2019 employee payroll, FRC was able to apply for a $6.8 million PPP loan in April 2020. At the time of its April 2020 PPP loan application, FRC employed less than 100 people. In April 2021, FRC applied for forgiveness of the loan. The United States alleged that FRC falsely represented its eligible payroll costs for 98 employees in its loan forgiveness application, which enabled FRC to receive full forgiveness of the $6.8 million loan. The United States alleged that, in actuality, FRC was only entitled to loan forgiveness of $4,945,860. The matter was investigated by Assistant U.S. Attorney Gina Kim and auditor Peter Melaragni. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia . The civil claims settled are allegations only; there has been no determination of civil liability.
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