A Florida businessman, Patrick Walsh, and ten of his companies have agreed to pay over $20 million to settle allegations that they fraudulently obtained pandemic relief loans. Walsh was accused of submitting false information on loan applications for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The companies involved included American Blimp Company LLC, Airsign Inc., Aero Capital LLC, and several others.
The PPP and EIDL programs were created under the CARES Act in 2020 to help small businesses struggling during the COVID-19 pandemic. These loans were meant to cover payroll, rent, utilities, and other essential business expenses. Walsh, however, misrepresented the number of employees and payroll details for his companies, some of which were inactive. He also applied for loans in his wife’s name and misused the funds for personal expenses, such as buying a private island and investing in Texas oil projects. In total, he received about $7.8 million in fraudulent loans.
Walsh was previously convicted of wire fraud and money laundering in 2023, receiving a 66-month prison sentence. He was also ordered to repay the $7.8 million he obtained fraudulently. Now, under this new settlement, he and his companies must pay a total of $20,074,458.70.
Officials emphasized the importance of protecting taxpayer-funded relief programs. Acting Assistant Attorney General Yaakov M. Roth stated that this case serves as a warning to those who might try to take advantage of government aid. Acting U.S. Attorney Michelle Spaven reinforced that fraudsters who steal from relief programs will face serious consequences. The U.S. Small Business Administration (SBA) also praised the settlement as a win for accountability and the protection of public funds.
The case originated from a whistleblower complaint filed by Andrew Hersh, an IT worker who had performed services for Walsh. Under the False Claims Act, whistleblowers can bring lawsuits on behalf of the government and potentially receive a share of the settlement. The amount Hersh will receive has not yet been determined.
The investigation and settlement were the result of efforts by multiple government agencies, including the Department of Justice, the U.S. Attorney’s Office for the Northern District of Florida, and the SBA’s Office of Inspector General.
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