Tarrant County Concrete Company Settles COVID-19 Fraud Case for $1.8 Million
A concrete manufacturing company based in Tarrant County, Texas, has reached an agreement to repay more than $1.8 million following allegations of fraud related to COVID-19 relief funds. This settlement comes amid ongoing efforts by federal authorities to recover improperly disbursed funds from the Paycheck Protection Program (PPP).
Background of the Case
Speed Fab Crete Corporation, a precast concrete manufacturer located in Kennedale, Texas, was accused of fraudulently obtaining loans from the Small Business Administration (SBA) under the Paycheck Protection Program. According to the U.S. District Attorney’s Office, the company secured loans totaling $1.17 million while its owners were under criminal investigation for violating the program’s eligibility criteria.
Statements from Authorities
Acting United States Attorney Chad E. Meacham emphasized the commitment of his office to recover funds obtained through unlawful means. “This office is committed to finding and recovering PPP funds that were obtained by ineligible recipients during the pandemic,” Meacham stated. He further noted that investigations will persist to ensure accountability for fraud against taxpayer resources.
The settlement is a result of a lawsuit filed under the whistleblower provisions of the False Claims Act, which allows the government to seek damages from individuals who falsely claim government funds, potentially recovering three times the initial amount of damages incurred.
Wendell Davis, General Counsel for the SBA, remarked on the collaborative efforts surrounding this case, stating, “This settlement highlights the enhanced efforts of the SBA, working with the Department of Justice, SBA’s Office of Inspector General, and other Federal law enforcement agencies, as well as private individuals who have information about possible fraud in connection with PPP loans, to pursue those who violated PPP program requirements and holding them accountable.”
Previous Legal Issues
In a separate matter, Speed Fab Crete Corp. had previously faced legal consequences for employing undocumented workers. In 2020, the company agreed to a $3 million settlement with the federal government for its involvement in hiring illegal migrants. The owners and the chief financial officer of the company, along with the owner of a staffing agency involved, pled guilty in connection to this scheme. The CFO received a sentence that included three months of imprisonment and a fine of $69,000.
Conclusion
The resolution of this case reinforces the federal government’s efforts to uphold integrity in the disbursement of COVID-19 relief funds and highlights ongoing vigilance against fraudulent activities related to federal financial programs.
Sources
Information for this article is derived from the U.S. District Attorney’s Office of Northern Texas and the U.S. Department of Justice. Details regarding the 2020 hiring scheme were sourced from Immigration and Customs Enforcement.
