Beko Technologies, a company based in Atlanta, Georgia, has agreed to pay over $3.6 million to settle allegations of providing false information to obtain Paycheck Protection Program (PPP) loans. This announcement was made by Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
“PPP loans were designed to assist struggling businesses and to keep people employed in the middle of the pandemic,” said U.S. Attorney Ferguson. “The program was supported by taxpayer money to help small businesses and the U.S. economy, not to bankroll foreign businesses ineligible for taxpayer-funded assistance.”
The PPP was created under the CARES Act in March 2020 and administered by the Small Business Administration. It provided forgivable loans during the COVID-19 pandemic. Borrowers had to certify their eligibility when applying for these loans.
The settlement addresses claims that Beko misrepresented itself as a small business when applying for PPP loans totaling over $2.5 million. The government alleges that Beko claimed it had 104 or fewer employees while being part of a German company with over 500 employees worldwide, making it ineligible for these loans.
This case originated from a lawsuit filed under the False Claims Act’s qui tam provision, allowing private parties to sue on behalf of the United States and share in any recovery obtained by the government.
Assistant U.S. Attorney Seth Johnson led the government’s investigation into this matter.
Individuals with information about COVID-19-related fraud are encouraged to report it via the Department of Justice’s National Center for Disaster Fraud Hotline or through their online complaint form.
It is important to note that these claims are allegations only and there has been no determination of liability.
