Wholesale steel distributors settle Paycheck Protection Program false claims

RICHMOND, Va. - Seven Allied Crawford corporations who are wholesale steel distributors incorporated in seven separate states, including Virginia (Allied Companies), have agreed to pay $3,316,973.98 to settle civil False Claims Act (FCA) allegations arising from the submission of statements on their applications for Paycheck Protection Program (PPP) loans, specifically, that each of the Allied Companies falsely certified it was eligible to receive the loans.

The United States alleged that the Allied Companies received PPP loans of more than $2.7 million, which later were forgiven, after submitting statements on loan applications falsely certifying eligibility, and again on applications for forgiveness of the loans between February 2021 and October 2021.

The settlement began with a lawsuit, United States ex rel. GNGH2, Inc. v. Allied Crawford (Petersburg), Inc., filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims presented to the federal government and share in a portion of the government's recovery. The whistleblower will receive a ten-percent share of the settlement. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the U.S. Small Business Administration.

The matter was investigated by Assistant U.S. Attorney Robert McIntosh.

A copy of this press release may be found on the website of the U.S. Attorney's Office for the Eastern District of Virginia. Case records may be found on PACERLinks 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. under case number 3:25-cv-200.

The civil claims settled are allegations only; there has been no determination of civil liability.