VSoft Corporation, a banking and payment solutions provider based in Atlanta, Georgia, has agreed to pay $2,291,927.07 to resolve allegations that it violated the False Claims Act by providing false information to obtain a Paycheck Protection Program (PPP) loan for which it was not eligible, U.S. Attorney Russ Ferguson announced on May 8.
The settlement addresses claims that VSoft misrepresented itself as a small business with fewer than 300 employees when applying for a second-round PPP loan of $1,259,732. Authorities allege that VSoft was actually part of an international corporation with multiple locations worldwide and exceeded the employee limit required for eligibility.
The case originated from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act. This allows private parties to file suit on behalf of the United States regarding false claims and potentially share in any government recovery. The lawsuit is titled United States ex rel. GHGH2, Inc. v. Vsoft Technologies Corporation; Case No. 3:24-cv-999(W.D.N.C.). The investigation was led by Assistant U.S. Attorney Seth Johnson.
Ferguson said individuals who have information about COVID-19 fraud are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
According to the official website, the U.S. Attorney's Office for the Western District of North Carolina prosecutes federal crimes and handles civil matters within its jurisdiction—including public safety initiatives addressing elder abuse and substance abuse—and employs nearly 100 federal prosecutors and support staff across facilities in Charlotte and Asheville.
Officials noted that "the claims resolved by the settlement are allegations only" and emphasized "there has been no determination of liability."
