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DOJ Press Releases (all components) · October 27, 2026 · Primary source

Foreign-Owned Companies To Pay $4.9 Million To Settle Fraud Allegations Related To Paycheck Protection Program Loans

Score 66PRIMARYregulatoryDOJFCAMI

Summary

The U.S. Attorney's Office for the Eastern District of Michigan announced a $4,769,597 False Claims Act settlement with Energy Steel & Supply Co. and Hayward Tyler Inc., both subsidiaries of UK-based Avingtrans PLC, resolving allegations that they falsely certified eligibility for second-draw PPP loans in February 2021. The United States alleged the companies collectively exceeded the 300-employee cap when affiliates were counted, making them ineligible under SBA rules. The case originated as a qui tam action under 31 U.S.C. 3729 et seq., captioned United States ex rel. GNGH2, Inc. v. Energy Steel & Supply Co., et al., Case No. 2:24-cv-11617, with the relator receiving 10% of the recovery.

What this may mean

The settlement resolves FCA liability for false certifications in SBA loan applications, reinforcing that affiliate-employee aggregation rules apply to PPP eligibility determinations. Foreign-owned or multi-entity corporate families that failed to aggregate employee counts across affiliates when certifying PPP eligibility face continued qui tam and DOJ exposure. The recovery amount of approximately $4.77 million reflects the combined loan proceeds plus applicable multipliers under the civil FCA settlement framework.

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