Scamming the System: $10M+ Paid to Settle COVID-19 PPP Loan Fraud Allegations in 2 Cases Brought by Whistleblowers

Posted March 28, 2025

In the deluge of recent enforcement actions battling COVID-19 fraud, the government announced that a wide range of companies fraudulently certified their loan eligibility and received Paycheck Protection Program (PPP) loans intended for qualifying small businesses seeking emergency relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Just in the past few weeks, two separate companies, a concrete manufacturer and a health system, have agreed to pay over $10 million dollars combined to settle allegations that they falsely certified eligibility to qualify for PPP loans. Both cases were brought by whistleblowers, called relators, under the qui tam (whistleblower provision) of the False Claims Act, enabling private parties to file suits on behalf of the government and receive a portion of the monetary recovery.

Here are two companies that have recently agreed to pay to settle allegations:

Speed Fab-Crete Corporation

On March 20, 2025, a Texas-based concrete manufacturer, Speed Fab-Crete Corporation, agreed to pay $1,817,546.25 to resolve allegations that it violated the False Claims Act when it falsely certified eligibility and applied for and received a $1,170,000 PPP loan during COVID-19.

Under SBA rules, businesses were disqualified from receiving PPP funds if any owner with at least 20% equity was facing criminal charges at the time of the application. In 2020, some of Speed Fab-Crete Corporation’s owners were facing criminal charges and were therefore not eligible for PPP loans.

This case was brought by whistleblower Aidan Forsyth, who will receive a 15% share of the government’s recovery as part of the settlement.

Carson Tahoe Health System and its affiliates

On March 24, 2025, California’s Carson Tahoe Health System and its entities agreed to pay $8,876,475.45 to settle allegations that the business was ineligible for the four PPP loans it received. Carson was ineligible for the loans because it exceeded the size limitations required by the SBA that counted any affiliated entities during the loan application process.

In 2020, Carson Tahoe Health System, Carson Tahoe Physician Clinics, and Carson Tahoe Continuing Care Hospital each received a PPP loan, in the amount of $5,077,011. They later submitted loan forgiveness applications and SBA forgave the loans. In February 2021, Carson Tahoe Physician Clinics applied for a $2 million PPP loan followed by a loan forgiveness application submission. In September 2021, the SBA forgave the loan. All four loans totaled $7,267,009 in funds from the government, including lenders fees, forgiven loan principal, and interest. The settlement resolves claims filed by a whistleblower who will receive an undisclosed percentage of this recovery.

Acting U.S. Attorney Michele Beckwith said: “This settlement returns millions of taxpayer dollars to the government and reflects our ongoing commitment to enforce the requirements of the Paycheck Protection Program and ensure that only eligible businesses received this critical pandemic relief.”

Constantine Cannon whistleblower attorney Ginger Buck commented: “These cases make clear that the government relies on whistleblowers to step forward. They play a critical role in helping the government hold accountable companies who take advantage of emergency relief programs.”

The Role of Whistleblowers and COVID-19 Related Fraud

Whistleblowers are vital to speaking out against misconduct and sharing information about matters such as defrauding the government. This fraud can include COVID-19 era information related to falsely certifying requirements when applying for COVID-19 loans, unauthorized use of funds, payment of kickbacks to obtain government contracts related to COVID-19, and more.

Constantine Cannon Helps COVID-19 Fraud Whistleblowers

Our firm handles cases related to COVID-19 fraud. If you have details or questions regarding a possible case, please contact us to see how we can help.