PHOENIX, AZ – Hemisphere GNSS (USA) Inc., a satellite-based GPS manufacturer now owned by CNH Industrial, has agreed to pay $2.6 million to settle allegations that it improperly obtained and received forgiveness for a second-draw Paycheck Protection Program (PPP) loan by misrepresenting its eligibility under federal rules. The allegations were brought to light by GNGH2 Inc., a private entity that filed a qui tam lawsuit under the False Claims Act.
The case, filed in the District of Arizona (United States ex rel. GNGH2, Inc. v. Hemisphere GNSS (USA) Inc., 2:22-cv-00224), claimed that Hemisphere falsely certified it was eligible for PPP funds by asserting that it was not owned or substantially controlled by a Chinese entity. Specifically, the company certified that it:
- Had no 20% or greater ownership interest held by any entity organized under the laws of the People’s Republic of China.
- Did not retain any board member who was a resident of China.
According to the Department of Justice, both certifications were false at the time they were made in February 2021, and therefore, Hemisphere was ineligible to receive the loan or its subsequent forgiveness.
Whistleblower Rewarded
Thanks to the whistleblower complaint initiated by GNGH2 Inc., the case resulted in full resolution without a trial. Under the False Claims Act’s qui tam provisions, the whistleblower is entitled to a share of the recovery. In this case, GNGH2 Inc. will receive $260,000.
Why It Matters
This case is yet another reminder that pandemic relief programs, while essential, were vulnerable to exploitation. It also underscores the importance of vigilant private parties—like GNGH2—who come forward with credible information.
At Find Corporate Waste, our mission is to help whistleblowers with material knowledge of fraud connect to legal experts who can pursue False Claims Act recoveries on behalf of the government. This settlement shows the power of that connection.
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