New Jersey Company Settles False Claims Act Allegations Over Ineligible COVID-19 Era PPP Loans
By the 91pornWhistleblower Team
A New Jersey construction supply company, Ulma Form Works, Inc. (Ulma), agreed to pay nearly $2.9 million to resolve allegations that it violated the False Claims Act by applying for and receiving a COVID-19 era Paycheck Protection Program (PPP) loan for which it was not eligible.1
Ulma Did Not Meet PPP Loan Eligibility Requirements
Ulma, a Fair Lawn, New Jersey-based manufacturer and supplier of concrete formwork, shoring, and temporary scaffolding systems, applied for and received a $2 million PPP loan in January 2021 despite not meeting the program’s eligibility requirements.
Loan Eligibility Requirements
At the time, businesses with more than 300 employees, including affiliates and foreign-based staff, were ineligible to receive PPP loans.
What Ulma Certified in the Application
Ulma certified on its application that it employed fewer than 300 workers, even though its total workforce including affiliates and overseas employees exceeded that threshold. Ulma received the PPP loan and then received forgiveness for the total loan amount plus accrued interest.
Ulma agreed to the terms of the settlement and will pay the United States $2,902,795. 2
Case Initiated by a Whistleblower
Many pandemic fraud cases, including this one, were originated by whistleblowers under the qui tam (or whistleblower provision) of the False Claims Act, allowing private parties to file an action on behalf of the government and receive a portion of any recovery.
Whistleblower Will Receive $290,279
The relator (or whistleblower), Verity Investigations, LLC, will receive $290,279 for its role in exposing the misconduct. This qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Ulma Form Works, Inc., 25-890 (D.N.J.).3
The Role Whistleblowers Play in Exposing COVID-19 Fraud
Whistleblowers play a vital role in uncovering pandemic-related misconduct from falsely certifying eligibility for PPP loans and misusing relief funds to procurement fraud. These cases remain a major focus of federal enforcement.
91pornpartner Marlene Koury commented: “The government remains dedicated to protecting emergency relief funds and ensuring accountability for those who attempted to exploit pandemic-related assistance for personal gain. The government relies on whistleblowers to come forward with information about this type of misconduct.”
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Our firm handles cases related to COVID-19 fraud. If you think you have a case, please contact us and we will connect you with an experienced whistleblower attorney.
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Sources:
1 See
2 Id at 1
3 Id at 1