Immco Diagnostic LLC and Primus Corporation have agreed to pay $2.375 million to resolve allegations that they improperly obtained Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration, according to an announcement by U.S. Attorney Michael DiGiacomo.
The PPP was established in March 2020 by Congress as a response to the economic impact of the COVID-19 pandemic, offering forgivable loans guaranteed by the SBA to help American businesses. Eligibility for a second draw PPP loan required businesses to have no more than 300 employees.
In 2021, Immco and Primus applied for and received second draw PPP loans. At that time, both companies were owned and controlled by Trinity Biotech plc, an Ireland-based company with subsidiaries worldwide. The United States alleges that Trinity and its affiliates, including Immco and Primus, had more than 300 employees when applying for these loans and subsequent forgiveness, making them ineligible under program 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 managed by Assistant U.S. Attorneys David M. Coriell and Jonathan W. Ferris, along with Investigator Margaret McFarland and assistance from the SBA’s Office of General Counsel.
People who have information about potential fraud involving COVID-19 are encouraged to report it via the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through its online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
It is noted that the settlement resolves allegations only; there has been no determination of liability.
