Immco Diagnostic LLC and Primus Corporation have agreed to pay $2.375 million to settle allegations that they improperly received Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration, according to an announcement from U.S. Attorney Michael DiGiacomo for the Western District of New York.
The PPP was established by Congress in March 2020 to help American businesses facing economic challenges due to the COVID-19 pandemic. The program offered forgivable loans guaranteed by the SBA, with eligibility for a second draw loan limited to businesses with 300 or fewer employees.
In 2021, Immco and Primus applied for and received second draw PPP loans. At the time of their applications and subsequent requests for loan forgiveness, both companies were owned and controlled by Trinity Biotech plc, an Ireland-based company with subsidiaries worldwide. Including all affiliates, Trinity had more than 300 employees when Immco and Primus sought the loans and forgiveness. The United States contends that this made them ineligible under PPP rules.
“PPP was designed to support small business during the COVID-19 pandemic, but these companies failed to disclose accurate information about their size and eligibility thereby obtaining $1.8 million in forgiven loans that they were not entitled to,” said U.S. Attorney DiGiacomo. “This office is committed to recovering taxpayer dollars that were improperly obtained by through the PPP.”
The case was handled by Assistant U.S. Attorneys David M. Coriell and Jonathan W. Ferris, Investigator Margaret McFarland, and received assistance from the SBA’s Office of General Counsel.
Individuals who have information about potential fraud involving COVID-19 relief programs are encouraged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The settlement resolves allegations only; there has been no determination of liability.
