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Home False Claims-Qui Tam

Whistleblower Receives $2 Million for Exposing Alleged PPP Loan Fraud Scheme

Geoff SchwellerbyGeoff Schweller
January 22, 2025
in False Claims-Qui Tam
Reading Time: 3 mins read
COVID fraud whistleblower
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On January 17, the U.S. Department of Justice (DOJ) announced that skilled nursing facilities chain Unified Care Services LLC (Unified Care), its affiliates and its owner agreed to pay $18 million to resolve allegations that they violated the False Claims Act (FCA) by defrauding Paycheck Protection Program (PPP).

The case stems from a whistleblower lawsuit filed under the FCA’s qui tam provisions. The whistleblower is set to receive $2 million as their share of the recovery.

According to the DOJ, “Unified Care and its affiliates falsely certified they were small business with fewer than 500 employees when they submitted their PPP loan and loan forgiveness applications in 2020.”

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“PPP loans were intended to assist eligible small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”

“COVID-relief programs were designed to help people and businesses during the worst public health crisis this nation had seen in one century,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to pursue those who knowingly cheat taxpayers by violating PPP and other pandemic-related programs.”

The False Claims Act’s qui tam provisions enable private citizens and private parties to file lawsuits on behalf of the government if they know of an individual or company defrauding the government. Qui tam whistleblowers are eligible to receive between 15 and 30% of the government’s recovery.

During FY 2024, settlements and judgments under the False Claims Act exceeded $2.9 billion and over $2.4 billion of the recoveries stemmed from qui tam whistleblower lawsuits. Furthermore, according to the government, a record 979 qui tam lawsuits were filed in FY 2024.

However, in September 2024, a district judge in Florida ruled that the False Claims Act’s qui tam provisions were unconstitutional. The U.S. federal government is urging the U.S. Court of Appeals for the Eleventh Circuit to reverse that decision, stating in a brief that “other than the district court here, every court to have addressed the constitutionality of the False Claims Act’s qui tam provisions has upheld them.”

Whistleblower advocates have warned of dire consequences should the district court ruling stand and have also outlined why it is inconsistent with prior case precedent and misinterprets the qui tam provisions.

The claims asserted in this case are allegations only, and there has been no determination of liability.

Further Reading:

Unified Care Services LLC Agrees to Pay $18M to Settle False Claims Act Allegations Relating to Paycheck Protection Program Loans

More False Claims Act News

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SEC Penalizes Investment Adviser Two Sigma for Impeding Whistleblowing

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False Claims Act Whistleblower Suit Results in $4 Million Settlement over PPP Fraud Allegations

Geoff Schweller

Geoff Schweller

Geoff Schweller is the Assistant News Editor for Whistleblower Network News. He coordinates news coverage, and also writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, CFTC whistleblowers, and federal employee whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies.

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Duct Cleaning Company To Pay $30,000 To Settle Allegations of PPP Loan Fraud; Whistleblower To Receive Award 

False Claims Act Whistleblower Suit Results in $4 Million Settlement over PPP Fraud Allegations

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