Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
Akris Inc. has agreed to pay more than $1.8 million to settle allegations that it violated the False Claims Act by securing a Paycheck Protection Program (PPP) loan for which it was not eligible.
According to the settlement agreement, Akris admitted that in March 2021, it applied for a second draw PPP loan and certified its eligibility under program rules. At the time of application, Akris and its foreign affiliate together employed over 300 people. The Small Business Administration (SBA) had announced on January 8, 2021, that businesses with more than 300 employees were not eligible for these second draw loans.
The settlement recognizes Akris for cooperating under the Department of Justice’s guidelines regarding voluntary disclosure and remediation in False Claims Act matters.
The case also involved claims brought under the qui tam or whistleblower provisions of the False Claims Act, allowing private individuals to file actions on behalf of the United States and share in any recovery. As part of this resolution, the whistleblower will receive approximately $183,000.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 29, 2020, provided financial support through forgivable loans to small businesses impacted by COVID-19 via the PPP. SBA guidance issued on May 5, 2020 clarified that applicants must count all employees—including those of U.S. and foreign affiliates—when determining size eligibility unless an exception applies. This rule was enforced prospectively for applications made after May 5, 2020.
United States Attorney Leah B. Foley and representatives from the U.S. Small Business Administration announced the settlement. Assistant U.S. Attorney Steven Sharobem managed the case within the Affirmative Civil Enforcement Unit.
