Ohio Auto Parts Maker Murotech to Pay $3,039,615 to Resolve PPP False Claims Act Allegations
TOLEDO, Ohio — The U.S. Attorney's Office for the Northern District of Ohio announced that Murotech Ohio Corporation, an automotive component parts manufacturer with its principal place of business in St. Marys, Ohio, has agreed to pay $3,039,615, of which $1,085,577 is restitution, to resolve allegations under the False Claims Act (FCA) that it knowingly provided false information to obtain Paycheck Protection Program (PPP) loans and loan forgiveness. The company is a subsidiary of Muro Corporation, located in Japan.
The PPP program was launched through the Small Business Administration (SBA) to provide eligible companies with financial support during the COVID-19 pandemic. Murotech Ohio's first application, submitted in May 2020, certified that the company had fewer than 500 employees, but in fact it exceeded that amount when counting affiliates. A second application submitted in January 2021 certified that it employed fewer than 300 employees, but in truth the company employed far more when including affiliates. Murotech Ohio then applied to have both federal loans forgiven and certified on its submitted applications that the number of employees was below program limit requirements.
The settlement resolves two lawsuits filed under the whistleblower provisions of the FCA, which allow an individual, known as the relator, to file a complaint on behalf of the United States for false claims and share in a portion of the government's recovery. The whistleblower cases are captioned United States ex rel. GNGH2, Inc. v. Murotech Ohio Corporation, case number 3:24-CV-1592, and United States ex rel. Verity Investigations, LLC. v. Murotech Ohio Corporation, case number 3:24-CV-2245. As part of the settlement, the relators will receive $151,980.75 each.
The resolution was the result of a coordinated effort between the U.S. Attorney's Office for the Northern District of Ohio, with assistance from the SBA's Office of General Counsel (SBA-OGC). Assistant United States Attorney Angelita Cruz Bridges handled the matter for the Northern District of Ohio.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Published by GSM · USA (original Chinese edition)
Photo: 图：位于 Toledo 的 James M. Ashley and Thomas W.L. Ashley 美国法院（俄亥俄州北区联邦地区法院，本案诉讼地法院，资料图）。Carol M. Highsmith 摄，公共领域（美国国会图书馆藏品），取自维基共享资源。Photo: The James M. Ashley and Thomas W.L. Ashley United States Courthouse in Toledo, Ohio (U.S. District Court for the Northern District of Ohio; file photo). By Carol M. Highsmith, public domain (Library of Congress), via Wikimedia Commons.
