Five companies in Bucks County, Pennsylvania have agreed to pay $1,427,869 to the United States following allegations that they improperly obtained Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. The settlement was announced by Acting U.S. Attorney and Special Attorney Alina Habba.
According to the complaint and statements in the settlement agreement, Fred Beans Holdings, Inc.; Auto Express Enterprises, Inc.; Autorent of Doylestown Inc.; McCafferty Autorent Inc.; and Noble Advertising, Inc. each applied for and received approximately $973,395 in PPP loans in April 2020. At that time, businesses with more than 500 employees—including their affiliates—were not eligible for these loans. The government alleges that despite certifying their eligibility on loan applications, the companies exceeded this employee threshold.
After obtaining the loans, all five companies requested and received forgiveness for both the principal amounts and accrued interest. The government contends that this was done even though they were not entitled to receive or have these loans forgiven under program rules.
The companies cooperated fully with authorities during the investigation and resolution process. Under terms of the settlement agreement, a whistleblower who brought suit under the False Claims Act will receive $142,786 as part of the government’s recovery. The False Claims Act allows private individuals—known as relators—to file lawsuits on behalf of the United States concerning false claims and share in any recovered funds.
Assistant U.S. Attorney David V. Simunovich from Newark’s Health Care Fraud and Opioids Enforcement Unit represented the government in this matter.
Members of the public with information about potential fraud involving COVID-19 relief programs are encouraged to contact federal authorities through a dedicated hotline or web form provided by the Department of Justice’s National Center for Disaster Fraud at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The lawsuit is titled United States ex rel. Forsyth v. Fred Beans Holdings, Inc., et al., 25-2324 (D.N.J.).
