BUFFALO, N.Y. (WIVB) — Former Depew medical practice Lancaster Medical LLC has agreed to pay $500,000 to resolve allegations that the company fraudulently obtained a Paycheck Protection Program loan in 2020 that they were ineligible for, according to the United States Attorney’s Office.
Authorities alleged that Lancaster Medical LLC falsely certified their eligibility for a $249,290 PPP loan from the U.S. Small Business Administration in April 2020, violating the Trump Administration’s False Claims Act, a task force created to eliminate fraud.
According to the U.S. Attorney’s Office, Lancaster Medical LLC was ineligible for the loan as the company had sold its assets in 2019 prior to applying and failed to repay the loan after being informed it was not approved for forgiveness. Further, the office alleges that the loan proceeds were misused, funding personal expenses for the company’s formers owners…