Companies to pay $10.8 million over PPP loan fraud allegations

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MILWAUKEE (CBS 58) -- A group of affiliated companies has agreed to pay $10.85 million to resolve allegations that they improperly obtained COVID-19 relief funds through the Paycheck Protection Program.

The U.S. Department of Justice U.S. Attorney's Office Eastern District of Wisconsin announced Tuesday, April 2 that the companies, controlled by a family office, were accused of violating the False Claims Act by submitting false eligibility certifications.

Federal officials allege the group received more than $5 million in loans despite collectively employing more than 500 people, exceeding eligibility limits. The businesses include Barrington Venture Holding Company, The Club at Strawberry Creek, The Garlands of Barrington, Nuestro Queso, SSCO and Tire Profiles.

The settlement resolves civil claims without a determination of legal liability, and the companies did not admit wrongdoing as part of the agreement.

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