Dynamic Staffing, Inc., a company based in Muscle Shoals, Alabama, has agreed to pay $1,725,000 to resolve allegations that it made false statements to obtain and later secure forgiveness for a Second Draw Paycheck Protection Program (PPP) loan.
According to the United States government, Dynamic Staffing received a PPP loan exceeding $1.4 million after submitting inaccurate information on its application in February 2021. The company allegedly repeated these false statements when applying for loan forgiveness in October 2021.
The settlement follows a lawsuit filed under the whistleblower provision of the False Claims Act. This law allows private individuals to bring lawsuits on behalf of the federal government concerning fraudulent claims and potentially receive part of any recovery. In this case, the whistleblower was awarded ten percent of the settlement amount.
“This resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Small Business Administration,” according to officials involved in the case.
Assistant U.S. Attorney Robert McIntosh led the investigation into these allegations.
The civil claims resolved by this settlement are allegations only; there has been no determination of civil liability.
More information about this case can be found through public records at PACER under case number 3:25-cv-200 or on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
