Durst Image Technology US LLC, a company based in Rochester, New York, has agreed to pay $1.8 million to settle allegations that it improperly obtained Paycheck Protection Program (PPP) loans for which it was not eligible. The announcement was made by U.S. Attorney Michael DiGiacomo.
The PPP was created in March 2020 as part of the federal government’s response to the economic challenges posed by the COVID-19 pandemic. The program offered forgivable loans to help small businesses retain employees and manage expenses during shutdowns and reduced operations. Eligibility requirements included restrictions on the number of employees, with applicants generally required to have 300 or fewer workers for a second draw loan.
According to the U.S. Attorney's Office, Durst received a forgiven PPP loan despite exceeding these size limits. In 2021, when Durst applied for a second draw PPP loan, it was wholly owned by Durst Group AG, an international company headquartered in Brixen, Italy with multiple subsidiaries worldwide. At that time, Durst Group AG and its affiliates had more than 300 employees.
“PPP was designed to support small business during the COVID-19 Pandemic,” said U.S. Attorney DiGiacomo. “When companies fail to comply with the size and eligibility rules, this office is committed to recovering taxpayer dollars that were improperly obtained and spent.”
The settlement resolves claims brought under the qui tam provisions of the False Claims Act. Under these provisions, private individuals can file lawsuits on behalf of the government regarding fraud against federal programs and receive a portion of any recovered funds. In this case, United States ex rel. GNGH2 Inc. v. Durst Image Technology US LLC (24-cv-6185 W.D.N.Y.), the whistleblower will receive a share of the settlement.
Assistant U.S. Attorney David M. Coriell and USAO Investigator Margaret McFarland handled this matter with assistance from the Small Business Administration’s Office of General Counsel.
Anyone with information about potential fraud involving COVID-19 relief programs is encouraged to contact the Department of Justice’s National Center for Disaster Fraud via their hotline at 866-720-5721 or through their online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Authorities emphasized that these are only allegations; there has been no determination of liability.
