Two foreign-controlled companies have agreed to pay more than $1.7 million after federal officials said they weren’t eligible for the COVID relief loans they took.
Setterstix Inc. and MAE-EITEL Inc. will pay a combined $1,757,603 to resolve allegations that they violated the False Claims Act when applying for Paycheck Protection Program (PPP) loans, according to the U.S. Attorney’s Office in Buffalo.
Federal prosecutors say both companies falsely certified they had fewer than the maximum number of employees allowed under the program. Setterstix claimed to have under 500 workers in 2020, while MAE said it had under 300 in 2021. But in both cases, government officials allege the real number was higher once employees from parent and affiliated companies were counted.
Both companies are owned by GESCO Group, a German industrial conglomerate…