Settlement Over COVID-19 Relief Loan Allegations

Three companies owned by Chinese interests have agreed to pay $7.3 million to settle claims that they submitted false information to obtain COVID-19 relief loans, according to an announcement from the Department of Justice (DOJ) on Tuesday.

The firms involved, Greenland LA Metropolis Hotel Development LLC, Greenland US Management LLC, and Greenland LA Metropolis Development III, collectively referred to as the Greenland USA Entities, allegedly violated the False Claims Act by securing Paycheck Protection Program (PPP) loans for which they were not eligible. The DOJ stated that Trial Attorney Lindsey Roberts and Assistant U.S. Attorney Michael Carter handled the case.

Efforts to reach the Greenland USA Entities for comment were unsuccessful.

U.S. Attorney Brad D. Schimel for the Eastern District of Wisconsin remarked that the PPP was designed to support American small businesses during the pandemic, not to provide funding for large corporations owned by foreign entities. He emphasized that the defendants reportedly submitted inaccurate details to the Small Business Administration (SBA) to access funds they did not have the right to receive.

This settlement, Schimel noted, reflects a serious commitment to combatting fraud and protecting American taxpayers.

In their loan applications, the Greenland USA Entities claimed eligibility for the PPP. However, U.S. officials argue that these companies did not meet the qualifying criteria in either round of PPP loans because of their affiliations with additional companies in both the U.S. and China. Consequently, they employed more individuals than permitted under SBA size standards for their sector.

Lily Tang Williams, a Republican candidate for New Hampshire’s 2nd Congressional District, reacted on social media, expressing outrage over the situation. She referred to it as a fraud and criticized the companies’ actions, calling them “disgusting.” Williams, who has a background in China, is a vocal opponent of the Chinese Communist Party.

Greenland USA is described as a notable developer of residential and commercial properties, claiming to have invested over $8 billion across the U.S. on both coasts.

Established in 2020 through the CARES Act and executed by the SBA with assistance from the Treasury Department, the PPP aimed to provide financial relief to small businesses affected by COVID-19. Yet, numerous relief programs have been subject to fraud, as previous experts have indicated.

In another case, a man from Marietta, Georgia, was found guilty of multiple charges including bank fraud after he fraudulently obtained a PPP loan of $9.6 million and filed false tax returns that led to a $3.4 million IRS refund. Furthermore, 11 individuals have been indicted for fraudulently acquiring over $2 million in pandemic relief funds.