Universal Environmental Services, LLC, a Peachtree City-based subsidiary of the Avista Oil Group, will pay $2.6 million to resolve allegations that it violated the False Claims Act related to a Paycheck Protection Program loan, according to a July 27 announcement from the U.S. Attorney’s Office for the Northern District of Georgia.
U.S. Attorney Theodore S. Hertzberg said, “When people provide false information to obtain government-backed loans, they break the law and misdirect resources away from those who need them. Our office will continue to enforce the False Claims Act to recover such funds, plus penalties.”
The settlement follows an investigation prompted by a whistleblower complaint alleging that Universal Environmental Services applied for a second-draw Paycheck Protection Program loan in 2020 by reporting only its domestic employee count of 287 rather than including all employees within its corporate family as required by program rules. The company is part of Avista Oil Group, whose total workforce exceeds 300 employees—the eligibility threshold for these loans. Based on this information, a bank approved an approximately $2 million loan that was later paid off by the Small Business Administration at taxpayer expense.
Under provisions of the False Claims Act allowing private citizens to bring lawsuits on behalf of the United States and share in any recovery obtained by the government, the whistleblower will receive $312,000 from this settlement along with attorney fees. The claims resolved are allegations only; there has been no determination of liability.
This civil settlement resolves litigation filed under qui tam or whistleblower provisions in U.S. District Court for the Northern District of Georgia as United States ex rel. Verity Investigations LLC v. Universal Environmental Services, LLC (No. 3:24-cv-00109-LMM). Assistant U.S. Attorney Anthony DeCinque led the investigation with participation from former Special Assistant U.S. Attorney Nicole Karem and assistance from counsel at SBA’s Office of General Counsel.
The U.S. Attorney’s Office for the Northern District of Georgia serves as principal federal law enforcement agency across north Georgia—including Atlanta suburbs and bordering regions—handling cases with national and international dimensions while prioritizing threats such as terrorism and civil rights violations through collaboration with law enforcement partners serving about 7.5 million residents in its region, according to its official website.