Pasco auto dealer settles with feds on $9M ineligible PPP loan allegations

Victory Automotive Group of Port Richey agreed to pay $9 million to resolve allegations it violated the U.S. False Claims Act by knowingly providing false information in support of a Paycheck Protection Program loan forgiveness application it submitted, the U.S. Justice Department says in a Wednesday news release.

Congress created PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic, the Justice Department says.

The CARES Act's loans were forgiven if funds were spent on eligible expenses, such as employment. Only small businesses were eligible for PPP loans.