Erlanger-based manufacturing companies, Post Glover Lifelink, Inc and Post Glover Resistors, Inc., agreed to pay $2,500,000 to resolve allegations that they violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims.

Congress created the Paycheck Protection Programme to provide emergency financial assistance to small American businesses struggling to pay employees and other expenses during the COVID-19 pandemic.

Under the PPP, eligible small businesses could receive forgivable loans guaranteed by the U.S. Small Business Administration. Borrowers were required to certify in their applications that they were eligible for the requested loans and that the information they provided was true and accurate.

Regulations provided various eligibility requirements for the PPP, including limitations on the number of employees.

The settlement resolved allegations that Post Glover Lifelink, Inc. and Post Glover Resistors, Inc. falsely certified they were eligible to apply for and receive forgiveness of their second-draw PPP loans.

The government contended that, together with their foreign affiliates, Post Glover Lifelink, Inc. and Post Glover Resistors, Inc. collectively had more than 300 employees and were therefore ineligible for their second-draw PPP loans.

Post Glover Lifelink, Inc. and Post Glover Resistors, Inc. fully cooperated in the investigation and resolution of this matter.

The settlement resolves a lawsuit brought by a private citizen under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the government’s attention, and share in any financial recovery.

As part of this resolution, the individual who filed the qui tam complaint is eligible to receive a portion of the settlement proceeds.