Stainless-steel components supplier pays over $1.1 million to resolve False Claims Act allegations

HOUSTON - Stafford-based Matrix Metals LLC has agreed to pay $1,175,529.20 to resolve allegations of fraudulently obtaining a Paycheck Protection Program loan for which it was ineligible.

The Coronavirus Aid, Relief, and Economic Security Act established the PPP to provide forgivable loans to eligible small businesses affected by the COVID-19 pandemic. To qualify for a Second Draw PPP loan, businesses generally were required to have fewer than 300 employees of affiliated entities.

The settlement resolves allegations that Matrix Metals exceeded that employee threshold when it obtained a Second Draw PPP loan in January 2021 and later sought loan forgiveness. At the time, Matrix Metals was a wholly owned subsidiary of Matrix Metals Holdings Inc., which was owned by interests based in India. According to the allegations, Matrix Metals and its affiliated entities employed more than 300 people, making the company ineligible for the loan.

The settlement stems from a qui tam or whistleblower complaint filed under the False Claims Act which permits a private party to file an action on behalf of the United States and receive a portion of any recovery.

The U.S. Attorney's Office conducted the investigation in coordination with the Small Business Administration. Assistant U.S. Attorney Kenneth Shaitelman is handling the matter along with Attorney Amber Perez, Office of General Counsel for the SBA.

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