Automotive management company settles with DOJ to resolve False Claims Act allegations

Federal Issues DOJ False Claims Act / FIRREA Small Business Fees Consumer Finance PPP Settlement

On October 11, an automotive management company settled claims by the Department of Justice alleging that the company had violated the False Claims Act by knowingly providing false information in support of its Paycheck Protection Program (PPP) loan forgiveness application.

According to the DOJ’s allegations, the automotive management company certified it was a small business with fewer than 500 employees when in fact it shared common operational control with dozens of automobile dealerships with more than 3,000 employees in total.