The management company of the LaFontaine Automotive Group in Metro Detroit has agreed to pay $1.5 million to settle an alleged Paycheck Protection Program loan fraud.
According to the U.S. Attorney’s Office, LaFontaine Management Inc. is accused of violating the False Claims Act after making false statements to the Small Business Administration to obtain PPP loans. State officials say the company obtained a $1 million loan in April 2020.
The company allegedly “falsely certified it was eligible for its first draw loan and loan forgiveness, even though, together with its affiliates, it had more than 500 employees and was not operating as a franchise with a franchise identifier code from SBA, in violation of the PPP rules,” federal prosecutors say…