An Upstate New York company has agreed to pay $1.9 million to settle allegations that it improperly obtained a Paycheck Protection Program loan by failing to disclose its foreign ownership and employee count, federal prosecutors announced Thursday.
Sark Wire Corporation, an Albany-based manufacturer, admitted it did not meet eligibility requirements for the second-round PPP loan because it failed to count employees of its foreign affiliates when applying for the funds. The company also acknowledged that it did not disclose that it was majority-owned by a Turkish conglomerate in its loan and forgiveness applications.
The case originated from a complaint filed in U.S. District Court for the Northern District of New York. Under the False Claims Act, private parties can file suit on behalf of the government and receive a share of any recovery. The whistleblower in this case will receive $190,000 as their statutory share of the settlement…