Vix Technology Inc. Pays $2M+ to Settle Allegations of COVID-19 PPP Loan Fraud

Whistleblowers have been instrumental in the surge of recent government actions against COVID-19 relief fraud. On March 19, the government announced that Vix Technology Inc. (“Vix”) will pay double damages of $2,144,114 to resolve allegations that the company fraudulently submitted their qualifications for, and received, a COVID-19 Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA).

Vix Technology caters to the public transit industry by providing intelligent transportation systems, automated fare collection, and transit analytics.

Vix was allegedly ineligible for its $1,066,900 PPP loan due to the number of global workers it employed. The loan’s eligibility qualifications require a business to have fewer than 300 employees. Vix, an Australian company with a US headquarters in Arizona, has more than 300 total employees internationally, and thus did not qualify for the loan.

This resolves a qui tam False Claims Act lawsuit brought by the San Francisco-based company, Blockquote, responsible for news reporting, public interest internet research, and investigations. Blockquote filed the qui tam case on June 24, 2024.

Under the qui tam provisions of the False Claims Act, individuals or private parties, called relators, can bring claims and receive a portion of the monetary recovery by the government. Blockquote will receive $20,000 for attorneys’ fees and costs.

SBA General Counsel Wendell Davis commented: “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration, working with the U.S. Attorney’s Office and with private individuals who uncover fraudulent conduct, to recover the product of fraud and penalties as well.”

Constantine Cannon whistleblower partner Alysia Solow stated: “COVID-19 PPP loan fraud exploited the relief systems in place during a global crisis. With the deluge of enforcement actions we are seeing post-pandemic, it is clear that the government counts on whistleblowers to speak up and hold companies like Vix accountable.”

COVID-19 Related Fraud and The Role of Whistleblowers

Whistleblowers are critical to exposing misconduct, including sharing information about companies who scammed the government during the pandemic. Such fraud can include falsely certifying requirements when applying for COVID-19 loans, unauthorized use of funds, and payment of kickbacks to obtain government contracts related to COVID-19, among other examples.

On our blog, we have been reporting how whistleblowers called out businesses and individuals who defrauded the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. So far, in the first few months of 2025, the government announced millions of dollars in settlements and recoveries pertaining to such fraud.

Our Firm Helps COVID-19 Fraud Whistleblowers

As a whistleblower, you could be eligible for rewards under the False Claims Act. If you have information on a possible case, please contact us to see how we can help.