IE In-Home Health Care Provider Accused By Feds Of False Claims

RANCHO CUCAMONGA, CA — A Rancho Cucamonga-based home health company and its owner have agreed to settle an allegation that they double-dipped on a federal COVID-relief loan, the U.S. Department of Justice announced Friday.

Allstar Health Providers Inc. and its owner, Maria Chua, have agreed to pay $399,990 to the United States to resolve allegations that they violated the False Claims Act when they knowingly received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules, according to the DOJ.

The PPP emergency loan program, established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the Small Business Administration, was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic.

A borrower applying for a PPP loan was required to make multiple certifications relating to its eligibility and compliance with program rules. Among other things, PPP loan applicants in 2020 were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020.

Federal officials alleged that Chua submitted two PPP loan applications on behalf of Allstar Health Providers in May 2020, and in both applications, she certified that the company would not receive more than one loan prior to the December date.

"Despite these certifications, the United States alleged that Allstar Health Providers received two PPP loans in 2020, and thereafter knowingly and improperly retained the second, duplicate loan," according to the DOJ.

Allstar Health Providers failed to repay the duplicate loan, which resulted in a loss to the SBA when it purchased the loan guaranty on the duplicate loan, the federal agency said.

"When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose," said U.S. Attorney Martin Estrada for the Central District of California. "Those who violate the law by fraudulently receiving and retaining PPP loans will be held accountable."

"PPP loans were intended to provide critical relief to small businesses," said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. "The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs and obtained relief funds to which they were not entitled."

The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under the provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.