Dynamic Staffing, Inc., an Alabama-based company, has agreed to pay $1,725,000 to resolve allegations that it falsely claimed eligibility for a Second Draw Paycheck Protection Program (PPP) loan. The company, located in Muscle Shoals, received over $1.4 million through the PPP loan program. According to the United States government, Dynamic Staffing submitted false statements on its loan application in February 2021 and again when applying for forgiveness of the loan in October 2021.
The settlement stems from a lawsuit filed under the whistleblower provision of the False Claims Act. This provision allows private individuals to bring lawsuits on behalf of the federal government concerning false claims and share in any financial recovery. In this case, the whistleblower received ten percent of the settlement amount.
The resolution was achieved through cooperation between the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Small Business Administration. Assistant U.S. Attorney Robert McIntosh led the investigation.
Officials clarified that "the civil claims settled are allegations only; there has been no determination of civil liability."
Additional information about this case is available on the website of the U.S. Attorney’s Office for the Eastern District of Virginia and public court records can be accessed via PACER under case number 3:25-cv-200.
