The Taiji Group USA, Inc. (Taiji Group), a paper converter in Conover, has agreed to pay $460,395.09 to resolve allegations that it violated the False Claims Act by knowingly providing false information to apply for a Paycheck Protection Program (PPP) loan to which the company was not entitled, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina.
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide forgivable loans to small businesses struggling to pay employees and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, & Venues Act. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In March 2021, the Taiji Group applied for a second round PPP loan and certified that it was eligible to receive the loan. Among other certifications, the Taiji Group certified that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20 percent or more of the economic interest in the Taiji Group. The company also certified that it did not retain, as a member of its board of directors, a person who was a resident of the People’s Republic of China. According to the U.S. Attorney’s Office, at the time of its application, both certifications were allegedly false. For that reason, the Taiji Group was not eligible for the $271,165 second round PPP loan that it received. After receiving the PPP loan, the Taiji Group sought and received forgiveness for the total amount of the loan.
This matter arose from a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.
The claims resolved by the settlement are allegations only. There has been no determination of liability. The government was represented by Assistant U.S. Attorney Seth Johnson.
Story: Ralph Mangum-WHKY