Allstar Health Providers Inc., a California-based home health agency, and its owner have reached a settlement with the United States, agreeing to pay $399,990. This payment resolves allegations of violating the False Claims Act by improperly obtaining and keeping more than one Paycheck Protection Program (PPP) loan before December 31, 2020, which contravenes PPP regulations.
Launched in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program aimed to provide financial support to small businesses during the COVID-19 pandemic. Applicants were specifically required to certify that they would not receive more than one PPP loan before the end of 2020.
Federal authorities allege that the owner of Allstar Health Providers submitted two PPP loan applications in May 2020, certifying compliance with the program’s requirements. However, the agency reportedly received and kept two PPP loans in 2020, despite the certification, leading to a loss for the Small Business Administration (SBA) due to the failure to repay the second loan.
The settlement also addresses claims from a whistleblower, who will receive approximately $60,000 as part of the resolution. This case involved collaboration between multiple federal entities, including the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Central District of California, and the SBA’s Office of General Counsel and Office of the Inspector General.
