LS Cable & System USA, Inc. agreed to pay $4 million to the United States to resolve allegedly false claims for payments under Paycheck Protection Program (PPP) loans and PPP loan forgiveness, according to a July 16 announcement from the U.S. Attorney’s Office for the Eastern District of North Carolina.
The settlement addresses allegations that LS Cable knowingly misrepresented its number of employees and affiliated personnel, unlawfully seeking and obtaining PPP loan funds and forgiveness totaling more than $2,004,414 for which it was not legally eligible. The civil claims resolved by this settlement are allegations only; there has been no judicial determination or admission of liability. LS Cable denies the fraud allegations.
The False Claims Act allows the government to seek recovery of three times the amount of falsely obtained money, plus substantial penalties for each false claim submitted and attorneys’ fees to whistleblowers who initiate such actions. This matter was handled through collaboration between the United States Attorney’s Office for the Eastern District of North Carolina and the U.S. Small Business Administration.
A copy of this press release is available on the website of the U.S. Attorney’s Office for the Eastern District of North Carolina. Related court documents can be found on either their website or through PACER by searching Case No. 4:25-CV-130-BO.
The U.S. Attorney for the Eastern District of North Carolina prosecutes federal crimes, litigates civil matters, promotes community safety initiatives such as Project Safe Neighborhoods, employs 119 staff members across several cities including Raleigh and Fayetteville, covers areas with major military installations like Fort Bragg and Camp Lejeune, and is part of the Department of Justice, according to its official website.