Setterstix Inc. and MAE-EITEL Inc., both controlled by foreign interests, have agreed to pay a total of $1,757,603.65 to settle allegations that they improperly obtained Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration.
The PPP was created by Congress in March 2020 to provide financial support to small businesses affected by the COVID-19 pandemic. Loans under this program were forgivable and guaranteed by the SBA, but applicants had to certify that their total number of employees, including affiliates, did not exceed specific size limits.
According to the government, Setterstix received a PPP loan in 2020 after certifying it had fewer than 500 employees. Authorities allege that when counting employees from its parent company and affiliated entities, Setterstix actually exceeded this threshold. Similarly, MAE-EITEL secured a PPP loan in 2021 after stating it had fewer than 300 employees; however, officials claim that with its parent and affiliates included, MAE-EITEL surpassed this limit as well. Both companies are part of GESCO Group, a German conglomerate focused on acquiring medium-sized industrial firms.
“PPP loans were meant to help small business weather the effects of the COVID-19 pandemic, but too often large businesses obtained these funds through subsidiaries that failed to disclose their true size,” said U.S. Attorney DiGiacomo. “This office has been committed to recovering misspent money and, in 2025, more than $10 million has already been recovered from companies and entities that obtained PPP loans through false and fraudulent representations on PPP loan applications.”
The settlement resolves claims brought under the whistleblower provisions of the False Claims Act. These provisions allow private individuals—referred to as relators—to file lawsuits on behalf of the United States and receive part of any recovered funds. In this case (United States ex rel. Verity Investigations, LLC v. Setterstix Inc.; MAE-AMERIKA GmbH), the relator will receive a share of the settlement.
Assistant U.S. Attorneys David M. Coriell and Investigator Margaret McFarland handled this matter with support from the SBA’s Office of General Counsel.
The public is encouraged to report suspected COVID-19 fraud by contacting the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submitting information online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government noted that these are only allegations; no determination of liability has been made.
