Beko Technologies, a manufacturer based in Atlanta, Georgia, has agreed to pay $3,662,026 to settle allegations of providing false information to obtain Paycheck Protection Program (PPP) loans. The announcement was made by Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
“PPP loans were designed to assist struggling businesses and to keep people employed in the middle of the pandemic,” said U.S. Attorney Ferguson. “The program was supported by taxpayer money to help small businesses and the U.S. economy, not to bankroll foreign businesses ineligible for taxpayer-funded assistance.”
The PPP was created under the CARES Act in March 2020 and administered by the Small Business Administration. It offered forgivable loans to small businesses during the COVID-19 pandemic. Beko is alleged to have misrepresented itself as a small business with 104 or fewer employees when it applied for over $2.5 million in PPP loans. In reality, Beko is a subsidiary of a German company with more than 500 employees worldwide.
This settlement resolves allegations that arose from a lawsuit filed under the qui tam provision of the False Claims Act, allowing private parties to file suit on behalf of the United States and share in any recovery. The lawsuit is titled United States ex rel. GNGH2 Inc. v. Beko Technologies Corp., No. 3:24-cv-980 (W.D.N.C.).
Assistant U.S. Attorney Seth Johnson led the government’s investigation into this matter.
Individuals with information about 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 their online complaint form.
It should be noted that these claims are allegations only and there has been no determination of liability.
