The Battle Creek, Michigan-based manufacturer, Rosler Metal Finishing USA LLC (AKA Rosler), agreed to pay more than $2.2 million to resolve allegations that it defrauded the COVID-19-era Paycheck Protection Program, which was initiated as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act in March 2020 and administered by the Small Business Administration (SBA). The PPP was meant to provide loans to qualifying small businesses to assist with business expenses during the pandemic.

A second round of PPP loans became available in 2021. Rosler fraudulently obtained a second loan even though it did not meet criteria requiring companies to have less than 300 employees. Rosler, with over 300 employees, applied and falsely certified its total. The company shared ownership of other businesses, yet omitted this information on the application.

The settlement includes the resolution of claims brought under the qui tam, or whistleblower provisions, of the False Claims Act, where private parties can bring a lawsuit on behalf of the government and share up to 30% of the recovery.

Wendell Davis, General Counsel at the SBA, said: “The settlement in this matter reflects SBA’s commitment to identifying and pursuing those who perpetrated fraud on the Paycheck Protection Program. Such fraud unconscionably undermines critical pandemic relief, and SBA continues its enhanced efforts to uncover such misconduct and recover those damages.”

Constantine Cannon whistleblower partner Alysia Solow stated: “Government enforcement action against fraudsters who took advantage of emergency government assistance programs is needed to protect the integrity of support for businesses and workers. This news comes on the heels of a similar settlement regarding more allegations of fraudulently obtained PPP loans. At our firm, we encourage whistleblowers to bring information forward about these types of potential cases.”

If you would like to learn more about what it means to be a whistleblower or think you may have information relating to False Claims Act violations or COVID-19 fraud, please contact us so we can connect you with a member of our whistleblower lawyer team for a free and confidential consultation.

Read Michigan Manufacturer Rosler USA Will Pay $2.2M+ to Settle COVID-19 PPP Loan Program Fraud Allegations at constantinecannon.com