Find Corporate Waste

Tag: Utah

  • Aquatherm Pays $1.35M Over PPP Eligibility Allegations

    Aquatherm Pays $1.35M Over PPP Eligibility Allegations

    Aquatherm, L.P.⁠ agreed to pay $1,351,575.84 to resolve False Claims Act⁠ allegations that it improperly obtained a Paycheck Protection Program⁠ loan for which it was not eligible, according to the U.S. Attorney’s Office for the District of Delaware⁠.

    DOJ said Aquatherm received an $864,982 PPP loan in March 2021 after certifying that it and its affiliates had fewer than 300 employees. Under the applicable PPP rule, that employee count included domestic and foreign affiliates.

    According to DOJ, Aquatherm is 99% owned by Aquatherm Besitzgesellschaft mbH & Co. KG, a German company. The government alleged that Aquatherm exceeded the 300-employee limit when its domestic and foreign affiliates were included, making it ineligible for the loan. Aquatherm later received full forgiveness from the SBA.

    The settlement also resolved claims brought under the qui tam⁠ provisions of the False Claims Act. DOJ said the whistleblower will receive a share of the recovery.

    The case highlights a recurring PPP enforcement issue: affiliate headcount. For public-record screening, foreign ownership, control, affiliated entities, employee count, and forgiveness records can all create eligibility questions requiring verification.

  • Utah Men Charged in Alleged $5.5M IRS and SBA COVID-Relief Fraud Scheme

    Utah Men Charged in Alleged $5.5M IRS and SBA COVID-Relief Fraud Scheme

    Federal prosecutors have charged two Provo, Utah men in an alleged scheme to defraud the IRS and the Small Business Administration out of more than $5.5 million tied to COVID-era relief programs.

    According to the SBA Office of Inspector General⁠, David Starling, 61, and Benjamin Young, 39, were charged with conspiring to defraud the United States. Young was also charged with twelve counts of wire fraud. A third defendant, Adam Starling of Oregon, previously pleaded guilty.

    The government alleges the defendants owned or controlled eight companies and falsely listed family members — including spouses and children — as employees. Prosecutors say they created false tax documents reporting more than $4 million in wages, then used those documents to obtain COVID-relief benefits.

    The alleged proceeds included $3 million in tax credits and $200,000 in Paycheck Protection Program loans, which were later forgiven based on alleged false statements.

    The case also includes a separate SBA-backed loan angle. Prosecutors allege Young used fraud proceeds and embezzled funds to buy commercial space in Provo, then relied on fabricated documents to obtain a $2.5 million SBA-secured bank loan.

    For Find Corporate Waste⁠, this case is another reminder that COVID-relief enforcement is not just about the original loan. It is about payroll records, forgiveness certifications, tax filings, affiliated entities, and the paper trail behind taxpayer-backed money.