Former Department of Education Employee Agrees to Pay More Than $160,000 to Resolve False Claims Act Allegations

Baltimore, Maryland - The U.S. Attorney's Office announced, today, a former U.S. Department of Education employee agreed to pay a settlement in connection with federal False Claims Act violation allegations.

Natayah Adams, 44, of Upper Marlboro, Maryland, agreed to pay the United States $161,248.30 to resolve allegations that she submitted false claims to obtain three Paycheck Protection Program (PPP) loans.

U.S. Attorney Kelly O. Hayes announced the settlement with Special Agent in Charge Jamila Davis, U.S. Department of Education Office of Inspector General Eastern Regional Office (ED-OIG).

The Coronavirus Aid, Relief, and Economic Security (CARES) Act - a federal law enacted in March 2020 - provided emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. It gives financial assistance including forgivable loans to small businesses for job retention and other expenses. Established by the CARES Act, the Paycheck Protection Program (PPP) - administered through the Small Business Administration (SBA) - along with the Economic Injury Disaster Loan (EIDL), helped businesses meet their financial obligations.

In 2021, Adams submitted applications for three PPP loans in less than three months, each with a different lender. In total, Adams received $62,499.32 in PPP loans. The United States contends that in her loan applications, Adams knowingly made material misrepresentations. Among other things, Adams falsely claimed that her business - in which Adams resold jewelry purchased from another company on Etsy - brought in a gross income of $100,000.00. But Adams knew, the gross income of the business was less than $100,000.00. Additionally, Adams did not use the loans for the approved purposes listed on her applications. Instead, she diverted the money for personal use and to put toward a separate business.

U.S. Attorney Hayes commended ED-OIG for its work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Matthew Shea who handled this case.

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

For more information about the Maryland U.S. Attorney's Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.

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