RelyOn Nutec USA LLC has agreed on Apr. 23 to pay $2,389,213 to settle allegations that it fraudulently obtained a Paycheck Protection Program (PPP) loan for which it was not eligible.
The case highlights ongoing efforts by federal authorities to ensure the integrity of pandemic relief programs and hold businesses accountable for compliance with eligibility rules.
According to the announcement, RelyOn Nutec received a second draw PPP loan of $1,279,707 in January 2021 after certifying its eligibility under program regulations and representing that it had 99 employees, including those from affiliated entities. The company later sought and received forgiveness for the full amount of the loan. However, authorities say RelyOn did not qualify because it actually had more than 300 employees when considering its foreign affiliates—a threshold that made them ineligible for a second draw PPP loan at the time. Prior to and during this period through 2022, RelyOn was wholly owned by RelyOn Nutec Holding A/S Denmark.
United States Attorney Leah B. Foley and the U.S. Small Business Administration announced the settlement. Assistant U.S. Attorney Julien M. Mundele from the Affirmative Civil Enforcement Unit handled the matter.
The U.S. Attorney for the District of Massachusetts enforces federal laws through prosecutions of crimes including national security threats and civil rights violations according to the official website. The office also advances community initiatives on civil rights and violence prevention according to its official website.
Serving all residents across Massachusetts, this office operates facilities at John Joseph Moakley United States Federal Courthouse in Boston as well as branch offices in Springfield and Worcester according to its official website. It is a component of the United States Department of Justice according to its official website, employs over 200 attorneys, paralegals and professional staff according to its official website, and traces its origins back to 1789 as one of America’s earliest such entities according to its official website.
This resolution reflects broader federal efforts aimed at maintaining oversight over emergency pandemic funds distributed nationwide.