The U.S. Department of Justice has reached a settlement with Vix Technology (USA) Inc. over allegations related to the Paycheck Protection Program (PPP). The company, which designs and operates public transit systems, was accused of receiving a loan for which it did not qualify due to having more than 300 employees.
On June 24, 2024, Blockquote, a San Francisco-based company involved in internet research and news reporting, filed a qui tam lawsuit under the False Claims Act against Vix Technology. The lawsuit alleged that Vix had improperly received a PPP loan from the U.S. Small Business Administration on May 18, 2021.
Vix Technology agreed to pay $2,144,114 to resolve these allegations without admitting any wrongdoing. This amount represents double damages. Additionally, Vix will pay $20,000 to Blockquote for attorney fees and costs.
"The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration," stated SBA General Counsel Wendell Davis. He emphasized collaboration with private individuals in uncovering fraudulent conduct.
The negotiations were handled by Assistant United States Attorney Nickolas Bohl.
