Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
RelyOn Nutec USA LLC has agreed on Apr. 23 to pay $2,389,213 to settle allegations that it improperly obtained a Paycheck Protection Program (PPP) loan for which it was not eligible.
The case concerns the integrity of federal pandemic relief programs and efforts by authorities to ensure that emergency funds reached only those businesses that met eligibility requirements. The PPP, created under the Coronavirus Aid, Relief, and Economic Security Act in March 2020, provided forgivable loans to small businesses impacted by COVID-19 for job retention and certain approved expenses.
According to the U.S. Attorney's Office for the District of Massachusetts, RelyOn received a second draw PPP loan of $1,279,707 in January 2021 after certifying its eligibility based on employee count. The company stated it had 99 employees including those of affiliates but actually exceeded the program's limit of 300 employees when counting all U.S. and foreign affiliates as required by regulations at the time. Despite this discrepancy, RelyOn later sought and received forgiveness for the full amount of its loan.
United States Attorney Leah B. Foley announced that RelyOn admitted it did not qualify for either the second draw loan or forgiveness due to having more than 300 employees when considering its status as a wholly owned subsidiary of Denmark-based RelyOn Nutec Holding A/S during this period.
The U.S. Attorney for the District of Massachusetts is responsible for enforcing federal laws through prosecutions involving crimes such as national security threats and civil rights violations according to its official website. The office advances community initiatives on civil rights and violence prevention according to its official website, maintains facilities at several locations across Massachusetts according to its official website, employs over 200 attorneys and staff according to its official website, serves all residents statewide according to its official website, is part of the United States Department of Justice according to its official website, and traces its origins back to one of America's earliest such offices established in 1789 according to its official website.
Assistant U.S. Attorney Julien M. Mundele from the Affirmative Civil Enforcement Unit handled this matter.
