Alupress LLC, a company that manufactures automotive die casting components, has agreed to pay about $2.2 million to settle allegations that it improperly received Paycheck Protection Program (PPP) loans intended for small businesses. The announcement was made by U.S. Attorney Michael DiGiacomo in Buffalo, New York.
The PPP was established by Congress in March 2020 to help small businesses manage the economic challenges brought on by the COVID-19 pandemic. The program allowed eligible businesses to apply for forgivable loans guaranteed by the U.S. Small Business Administration (SBA), provided they met certain requirements. One key requirement limited the total number of employees an applicant could have, including those working for any foreign affiliates.
According to federal authorities, Alupress obtained a forgiven loan in 2021 despite not meeting these size restrictions. At the time of its application, Alupress was owned by Alupress Group and ultimately by Technicon, an Italian company with subsidiaries around the world. Together, Technicon and its affiliates had more than 300 employees when Alupress applied for the loan—exceeding the employee limit set by PPP rules.
“The Paycheck Protection Program was designed to support small business during the COVID-19 Pandemic,” said U.S. Attorney DiGiacomo. “This office continues to work tirelessly to recover taxpayer dollars that were improperly obtained when large companies, like Alupress, received loans by skirting the eligibility rules.”
The case was managed by Assistant U.S. Attorney David M. Coriell and USAO Investigator Margaret McFarland with assistance from the SBA’s Office of General Counsel.
People who have information about fraud or misuse related to 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.
Authorities noted that these claims are allegations only and there has been no determination of liability.
