Dynamic Staffing, Inc., a company based in Muscle Shoals, Alabama, has agreed to pay $1,725,000 to resolve allegations that it falsely claimed eligibility for a Second Draw Paycheck Protection Program (PPP) loan. The U.S. government alleged that Dynamic Staffing obtained a PPP loan exceeding $1.4 million in February 2021 and later had the loan forgiven after submitting false information on both its initial application and its forgiveness request in October 2021.
The settlement followed a lawsuit filed under the whistleblower provision of the False Claims Act. This law allows private individuals to sue on behalf of the United States if they believe false claims have been made against the federal government. In this case, the whistleblower received 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 with the case.
Assistant U.S. Attorney Robert McIntosh led the investigation into these allegations.
The public can find more information about this press release on the website of the U.S. Attorney’s Office for the Eastern District of Virginia or access case records through PACER using case number 3:25-cv-200.
Authorities emphasized that these civil claims are only allegations and there has been no determination of civil liability.
