Rockland Congruity LLC, a Delaware limited liability company based in Pembroke, Massachusetts, has agreed on July 15 to pay $2,687,700 to resolve allegations that it fraudulently obtained a Paycheck Protection Program (PPP) loan for which it was ineligible.
The settlement follows claims that Rockland received a $1,709,099 second draw PPP loan in March 2021 after certifying eligibility under the program’s regulations and stating it had 96 employees including those of its affiliates. The company later sought and received forgiveness for the full amount of the loan. At the time of application and forgiveness, Rockland was a subsidiary of Procurri Corporation Limited—a company with global operations—and when considering all employees from Procurri and its affiliates, Rockland exceeded the PPP’s maximum employee threshold of 300 for second draw loans.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted by Congress on March 29, 2020, created emergency financial assistance programs such as forgivable PPP loans for small businesses impacted by COVID-19. To qualify for these loans—administered by the Small Business Administration—businesses were required to certify they met certain size standards based on total employees across all U.S. and foreign affiliates.
United States Attorney Leah B. Foley and the U.S. Small Business Administration announced the resolution. Assistant U.S. Attorney Julien M. Mundele from the Affirmative Civil Enforcement Unit handled this matter.
The U.S. Attorney for the District of Massachusetts is part of the United States Department of Justice and enforces federal laws through prosecutions involving national security threats and civil rights violations; it also advances community initiatives on civil rights and violence prevention while serving all residents statewide with offices in Boston’s John Joseph Moakley United States Federal Courthouse as well as Springfield and Worcester locations. More than 200 attorneys, paralegals, and professional staff are employed at these facilities, according to the official website.