Air Force Active Duty Member Settles False Claims Act Allegations for Fraudulent Government Loan

Pensacola, Florida - Tyndall Air Force Base active-duty member, Negleatta Davis, has agreed to settle civil allegations that she violated the False Claims Act ("FCA") by knowingly providing false information in support of a Paycheck Protection Program ("PPP") loan pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Davis agreed to pay $24,000 in damages under the FCA. The civil settlement was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said, "Whether its through aggressive criminal prosecutions or affirmative civil enforcement actions, or both, my office is committed to rooting out fraud, waste, and abuse of federal programs to ensure fraudsters are held accountable. When someone defrauds the federal government, they are victimizing every U.S taxpayer. Under the National Fraud Enforcement Division, the Department of Justice is returning to a zero-tolerance posture for fraud of any kind or amount to fulfill the fiduciary duty we have to the American taxpayer."

The United States contends that from in or about April 2021, Davis prepared and submitted, or caused to be submitted, false and fraudulent documents and a false and fraudulent application to obtain a PPP loan totaling $14,375, in her name as sole proprietor. The loan was funded directly by the United States Small Business Administration ("SBA") or through various PPP-participating financial institutions that were federally-guaranteed by the SBA. The loan was forgiven and paid by the SBA, plus a lender fee of $2,500 and interest of $63.09, for a total of $16,938.09. Davis registered a business, Apple Jreamzz Treats & Things, with the State of Nevada while she was stationed there, on July 1, 2020. The United States contends that Davis fraudulently obtained the PPP loan at least in part because Apple Jreamzz Treats & Things was not established until July 2020, after CARES Act eligibility.

The Air Force Office of Special Investigations and the U.S. Small Business Administration provided substantial assistance in the investigation.

Assistant U.S. Attorney Mary Ann Couch represented the United States in this matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation's principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of FloridaLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. website. For more information about the United States Attorney's Office, Northern District of Florida, visit https://www.justice.gov/usao-ndfl.