Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
Ajinomoto Cambrooke, Inc., a company based in Ayer, Massachusetts, has agreed to pay $1,360,819.04 to settle allegations that it violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan for which it was not eligible.
The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020 to provide financial assistance to small businesses during the COVID-19 pandemic. The program allowed for forgivable loans if businesses met certain requirements, including size standards related to the number of employees. On May 5, 2020, guidance from the U.S. Small Business Administration clarified that applicants needed to count all employees of both their own company and any U.S. or foreign affiliates unless an exception applied.
According to the settlement agreement, Cambrooke admitted that on or about May 15, 2020, it applied for a first draw PPP loan and certified its eligibility under PPP rules. At that time, Cambrooke and its Japanese parent company together exceeded the employee size limit required for eligibility. Despite this, Cambrooke later received full forgiveness of the loan from the SBA.
The Department of Justice credited Cambrooke for cooperating with authorities as outlined in its guidelines regarding voluntary disclosure and remediation in False Claims Act matters.
The civil settlement also resolves claims brought under the whistleblower provisions of the False Claims Act. These provisions allow private individuals to file actions on behalf of the United States and receive part of any recovery. In this case, the relator will receive 10% of the settlement amount. The qui tam lawsuit is titled United States ex rel. Verity Investigations, LLC v. Ajinomoto Cambrooke, Inc., No. 25-cv-10220-RGS (D. Mass.).
U.S. Attorney Leah B. Foley and representatives from the U.S. Small Business Administration announced the resolution today. Assistant United States Attorney Lindsey E. Weinstein managed the case.
