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Hawthorne Machinery PPP Loan Fraud Suit to Proceed, Court Says

A whistleblower adequately alleged that California-based Hawthorne Machinery Co. and others violated the False Claims Act by misrepresenting how many employees the company had in order to receive a Paycheck Protection Program loan, a federal court said.

Thought Leadership

PPP Fraud: Big Numbers, Bigger Numbers to Go

We remember the onset of the pandemic all too well. Not only were the health concerns and consequences for the United States real and profound, but measures to protect the health of the population risked extreme economic consequences. Congress acted swiftly to prevent the worst consequences, appropriating $2.2 trillion within weeks through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through supplements, this number ultimately ballooned to over $5 trillion.

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