Allstar Health Providers Inc., a Rancho Cucamonga-based home health care company, and its owner Maria Chua have agreed to a $399,990 settlement with the U.S. Department of Justice (DOJ) after allegations surfaced that they violated the Paycheck Protection Program (PPP) guidelines by receiving and retaining more than one COVID-19 relief loan. This settlement addresses claims brought under the False Claims Act, which holds businesses accountable for fraudulent financial practices.
Allstar Health Providers and Chua were accused of fraudulently receiving two PPP loans in 2020, despite certifying in their loan applications that they would not obtain more than one loan. The Paycheck Protection Program, created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was designed to assist small businesses impacted by the COVID-19 pandemic. The program allowed businesses to access loans to cover payroll costs and other expenses, with the stipulation that recipients could only receive one loan through the program before December 31, 2020.
The DOJ alleges that in May 2020, Chua submitted two separate applications on behalf of Allstar Health Providers, falsely certifying that the company would not request or receive more than one loan. Despite this, the company did indeed receive two loans, and after receiving the second loan, failed to repay it, causing a financial loss to the Small Business Administration (SBA).
The company has agreed to pay $399,990 to the U.S. government to settle the claims, resolving the federal allegations. This settlement, which includes a financial penalty, stems from the whistleblower provisions of the False Claims Act. Under this law, private individuals can file claims on behalf of the government and are entitled to a portion of any funds recovered from such settlements.
The DOJ’s action highlights its commitment to ensuring that COVID-19 relief funds, intended to support struggling businesses during the pandemic, are used appropriately and legally.
“Fraudulent claims against the PPP not only harm taxpayers but also undermine the integrity of relief programs meant to help businesses during a global crisis,” said U.S. Attorney Martin Estrada for the Central District of California. “We will hold accountable those who attempt to exploit COVID-19 relief funds for their own gain.”
Brian M. Boynton, Principal Deputy Assistant Attorney General for the DOJ’s Civil Division, added, “PPP loans were crucial to keeping small businesses afloat during the pandemic, but they were not meant to be exploited. The department will continue to pursue those who knowingly violated the program’s requirements to receive funds they were not entitled to.”
This settlement underscores the DOJ’s continued efforts to ensure accountability and integrity in federal programs designed to aid businesses during the pandemic. With more investigations underway, the department remains committed to protecting taxpayers and preserving the intended purpose of COVID-19 relief initiatives.
Read more:
Tirzepatide Shortage: FDA Rescinds Ban On Compounding Pharmacies
More Than 230 Doctors Urge Trump To Release Medical Records Amid Growing Health Concerns
Jim Harbaugh’s Heart Flutter Leads To Brief Sideline Absence During Chargers Game
