ID Logistics settles claim of Covid loan fraud for $2.6M
ID Logistics US has settled a case of alleged pandemic relief fraud for $2.6 million. The post ID Logistics settles claim of Covid loan fraud for $2.6M appeared first on FreightWaves .
ID Logistics Group SA, the parent company of U.S. subsidiary ID Logistics US, has reached a $2.36 million settlement to resolve allegations of improper acquisition of a Paycheck Protection Program (PPP) loan during the Covid crisis. The U.S. Attorney’s Office for the Middle District of Pennsylvania announced the agreement on Tuesday.
According to the source, ID Logistics US falsely claimed it had fewer than 500 employees when it actually had over 500, making it ineligible for the PPP loan. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided forgivable loans to small businesses under the PPP, and the SBA guaranteed these loans. The fraudulent application was reported by a whistleblower, who will receive $236,200 from the settlement, as stated by the Department of Justice.
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