WISCONSIN (WFRV) – A group of affiliated companies controlled by a family office in Wisconsin has agreed to pay nearly $11 million to settle allegations of violating the False Claims Act by submitting false certifications for Paycheck Protection Program (PPP) loans.
On April 2, Barrington Venture Holding Company LLC, The Club at Strawberry Creek LLC, The Garlands of Barrington LLC, Nuestro Queso LLC, SSCO LLC, and Tire Profiles LLC agreed to settle the claims.
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The settlement resolves allegations that four of these companies — The Club at Strawberry Creek LLC, The Garlands of Barrington LLC, Nuestro Queso LLC, and Tire Profiles LLC — falsely certified their eligibility for PPP loans. These companies collectively received six PPP loans totaling more than $5 million in principal, despite having more than 500 employees, which made them ineligible for the program.
The PPP loan program, created in March 2020 through the Coronavirus Aid, Relief and Economic Security (CARES) Act, provided financial assistance to small businesses impacted by the COVID-19 pandemic. The loans could be forgiven if used on payroll and other eligible expenses, with the government repaying the borrower.
Borrowers were required to certify their eligibility when applying for a loan and forgiveness, including an accurate employee count. Businesses with fewer than 500 employees were eligible for the loans, but businesses under common ownership or control had to aggregate employee counts.
The U.S. government alleges that the family office companies knew they were ineligible for the PPP loans but applied anyway, taking steps to conceal their ineligibility.
“This settlement reflects the continuing commitment of the Department of Justice and the Small Business Administration to hold accountable businesses that abused this emergency program,” said Acting U.S. Attorney Frohling.
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SBA General Counsel Wendell Davis emphasized the collaborative efforts by federal agencies to recover the funds and impose penalties in such cases.
The claims settled are allegations only, with no determination of liability made.
