Fairfax (Va.) Radiological Consultants has agreed to pay $2.88 million to resolve allegations it misrepresented payroll costs to obtain full forgiveness of a $6.8 million Paycheck Protection Program loan, according to an April 2 news release from the Justice Department.
What happened?
- The group employed over 500 people in 2019, allowing it to qualify for a $6.8 million PPP loan in April 2020. However, by the time of the application, the group had fewer than 100 employees.
- In April 2021, FRC applied for full loan forgiveness, allegedly inflating its payroll data for 98 employees. Prosecutors say the group was only eligible for $4.95 million in loan forgiveness but received the full amount by falsely reporting payroll figures.
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