Taiji Group USA, Inc., a paper converter based in Conover, North Carolina, has agreed to pay $460,395.09 to settle allegations of violating the False Claims Act. The company allegedly provided false information when applying for a Paycheck Protection Program (PPP) loan it was not entitled to receive. This announcement was made by Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
The PPP was established in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help small businesses cover payroll and other expenses during the pandemic. In 2021, Congress extended these forgivable loans through additional legislation aimed at supporting hard-hit businesses.
In March 2021, Taiji Group applied for a second-round PPP loan and certified its eligibility by stating that no entity from China owned or held significant interest in the company and that no board member resided in China. However, both certifications were allegedly false at the time of application. Despite this, Taiji Group received a $271,165 loan and later obtained forgiveness for it.
"PPP loans were a lifeline for many businesses during the COVID-19 pandemic," said Acting U.S. Attorney Cameron. "Ineligible businesses that improperly obtained federal aid loans harmed the taxpayers who funded these programs and reduced the resources available for businesses that were eligible to receive assistance."
The case originated from a lawsuit filed under the qui tam provision of the False Claims Act by Sidesolve LLC on behalf of the United States against Taiji Group USA Inc., Case No. 5:24-cv-98.
Assistant U.S. Attorney Seth Johnson represented the government in this matter.
Individuals with information about COVID-19-related fraud can report it through various channels provided by the Department of Justice’s National Center for Disaster Fraud.
It is important to note that these resolved claims are only allegations with no determination of liability made against Taiji Group USA Inc.
