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Tag Archives: PPP loan

March 04

FCA Qui Tam

SBA Oversight Under Scrutiny as Borrowers Secure Nearly 7,000 Potentially Fraudulent PPP and EIDL Loans Worth $400M

On January 1st, Small Business Administration (SBA) Administrator Kelly Loeffler announced on X that the agency suspended “6,900 Minnesota borrowers” over suspected fraudulent activity regarding the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) payouts. Loeffler reported that these loans are worth “approximately $400M.” This article will explore PPP EIDL programs, relevant fraudulent claims in Minnesota, and how these illegally acquired loans violate the False Claims Act (FCA). How…

October 22

FCA Qui Tam, Whistleblowers

The Evolution of Whistleblower Lawsuits in PPP Loan Fraud

What is PPP Loan Fraud? In the heat of the Covid-19 pandemic, the U.S. Congress passed the Coronavirus Aid, Relief, and Economic Security Act, more widely known as the CARES Act, to provide emergency assistance and health care response for individuals, families, and businesses affected by the pandemic. The Act established the $953 billion Paycheck Protection Program (“PPP”) to allow afflicted entities to apply for low-interest private loans to cover payroll, rent, and additional costs. An approved PPP loan provided the…

September 02

Whistleblowers, FCA Qui Tam

$36M COVID Fraud Case Shows How Tax Preparers Can Trigger FCA Liability

On July 21, 2025, Farooq Khan was sentenced to 42 months in prison for participating in a scheme to fraudulently obtain over $3.6 million in minor business loans under the Coronavirus Aid, Relief, and Economic Security Act Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loan (EIDL) program implemented by the Small Business Administration (SBA). Khan owned and managed Hannan Tax Services, a tax preparation company based in Chicago.…

August 12

Whistleblowers, FCA Qui Tam

Founder of Lender Service Convicted in Multimillion-Dollar PPP Fraud Scheme

On June 20, 2025, Stephanie Hockridge, founder of service provider Blueacorn, received a federal jury conviction in connection with her fraudulent applications to the Small Business Association’s Paycheck Protection Program (“PPP”). She was convicted of four counts of wire fraud as well as conspiracy to commit wire fraud, facing up to 20 years in prison. Blueacorn’s mission was, purportedly, to assist small businesses and individuals with applying for and obtaining…

July 03

Whistleblowers, FCA Qui Tam

DOJ Secures Sentences in $30 Million COVID-19 Unemployment Fraud Scheme

On May 23, 2025, the Department of Justice (“DOJ”) announced that three co-conspirators were sentenced to up to 15 years in prison and ordered to pay restitution after being found guilty of defrauding the Georgia Department of Labor (“GDOL”) of more than $30 million in a COVID-era scheme. Macovian Doston, Shatara Hubbard, and Torella Wynn fraudulently submitted over 5,000 unemployment insurance (“UI”) claims, taking advantage of UI programs expanded through…

April 29

Whistleblowers

Health System Settles for $8 Million Over Healthcare PPP Loan Fraud Allegations

The U.S. Department of Justice has reached an $8.8 million settlement with Carson Tahoe Health System, resolving allegations that the healthcare provider improperly secured Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. According to the DOJ, Carson Tahoe and its affiliates—including Carson Tahoe Physician Clinics and Carson Tahoe Continuing Care Hospital—received four PPP loans despite allegedly exceeding size limits outlined in the Small Business Administration’s (SBA) affiliation rules. What…

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