Fairfax Imaging Company Agrees To Pay $2.8M To Settle False Claim Case

FAIRFAX, VA — Fairfax Radiological Consultants, PLLC agreed to pay $2,881,260 to settle False Claims Act allegations of falsely reporting payroll costs to obtain $6.7 million in economic relief during the COVID-19 pandemic, according to court documents.

Formerly known as Fairfax Radiological Consultants, P.C, FRC provides medical scanning services at 20 locations across Northern Virginia. Although FRC had 500 employees on its payroll in 2019, that number dropped to less than 100 in April 2020, according to court records.

The U.S. government accused FRC of using its 2019 payroll numbers when the company applied for full forgiveness of a $6.7 million Paycheck Protection Program loan in April 2021, according to court documents. Those numbers were about five times greater than the actual number of people FRC employed at the time of the application. FRC was only entitled to loan forgiveness of $4,945,860 for the 98 people it actually had on its payroll at the time.

“The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to provide their income and supporting documents to qualify for the loan amount and for later loan forgiveness,” according to a release.