Ohio Auto Parts Manufacturer Agrees to Pay $3M+ To Resolve False Claims Act Allegations Relating to Paycheck Protection Program Loans

TOLEDO, Ohio - The U.S. Attorney's Office for the Northern District of Ohio announced today that Murotech Ohio Corporation, an automotive component parts manufacturer with its principal place of business in St. Marys, Ohio, has agreed to pay $3,039,615, of which $1,085,577 is restitution, to resolve allegations under the False Claims Act (FCA) that it knowingly provided false information to obtain Paycheck Protection Program (PPP) loans and loan forgiveness. The company is a subsidiary of Muro Corporation, located in Japan.

The PPP program was launched through the Small Business Administration (SBA) to provide eligible companies with financial support during the COVID-19 pandemic. Murotech Ohio's first application submitted in May 2020 certified that the company had fewer than 500 employees, but in fact, it exceeded that amount when counting affiliates. A second application submitted in January of 2021 certified that it employed fewer than 300 employees, but in truth, the company employed far more when including affiliates. Murotech Ohio then applied to have both federal loans forgiven and certified on its submitted applications that the number of employees was below program limit requirements.

This settlement resolves two lawsuits filed under the whistleblower provisions of the FCA, which allows an individual, known as the "relator," to file a complaint on behalf of the United States for false claims and share in a portion of the government's recovery. The whistleblower cases are captioned United States ex rel. GNGH2, Inc. v. Murotech Ohio Corporation, case number 3:24-CV-1592 and United States ex rel. Verity Investigations, LLC. v. Murotech Ohio Corporation, case number 3:24-CV-2245. As part of the settlement, relators will receive $151,980.75 each.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Northern District of Ohio, with assistance from the SBA's Office of General Counsel (SBA-OGC).

Assistant United States Attorney Angelita Cruz Bridges handled this matter for the Northern District of Ohio.

Anyone with information about allegations of PPP fraud may submit a report with the SBA Office of the Inspector GeneralLinks 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..

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