Immco Diagnostic LLC and Primus Corporation have agreed to pay $2.375 million to settle allegations that they improperly received Paycheck Protection Program (PPP) loans, according to an announcement from U.S. Attorney Michael DiGiacomo for the Western District of New York.
The PPP was established by Congress in March 2020 to help American businesses affected by the COVID-19 pandemic. The program offered forgivable loans guaranteed by the U.S. Small Business Administration (SBA). Eligibility for a second draw PPP loan required that a business have no more than 300 employees.
In 2021, Immco and Primus applied for and received second draw PPP loans. At the time, both companies were owned and controlled by Trinity Biotech plc, an Ireland-based company with multiple subsidiaries worldwide. According to the United States, Trinity and its affiliates—including Immco and Primus—had more than 300 employees when applying for the loans and seeking forgiveness, making them ineligible under PPP rules.
“PPP was designed to support small business during the COVID-19 pandemic, but these companies failed to disclose accurate information about their size and eligibility thereby obtaining $1.8 million in forgiven loans that they were not entitled to,” said U.S. Attorney DiGiacomo. “This office is committed to recovering taxpayer dollars that were improperly obtained by through the PPP.”
The case was handled by Assistant U.S. Attorneys David M. Coriell and Jonathan W. Ferris, Investigator Margaret McFarland, and with assistance from the SBA’s Office of General Counsel.
Individuals who have information about possible fraud involving COVID-19 are encouraged to report it via phone or online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The settlement resolves allegations only; there has been no determination of liability.
