Source: https://www.jdsupra.com/legalnews/florida-man-and-affiliated-companies-5055214/

Florida Man and Affiliated Companies Pay $20 Million for COVID-19 Fraud

Following a whistleblower complaint filed by Andrew Hersh in 2020, a Florida businessman, Patrick Walsh, and 10 companies he owned or operated entered into a civil settlement for over $20 million to resolve False Claims Act (FCA) allegations. Walsh admitted to submitting fraudulent COVID-relief Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications on behalf of his companies. The applications, submitted in the name of Walsh’s wife, contained false information about the companies’ rosters and payrolls. As a result, Walsh received approximately $7.8 million in fraudulent loans on behalf of his companies. Walsh used loan proceeds to purchase a private island, invest in Texas oil interests, and pay personal debts.

Earlier, in 2023, Walsh pleaded guilty to one count of wire fraud and one count of money laundering in connection with the fraudulent PPP and EIDL loans and was ordered to pay $7.8 million in restitution and forfeiture in the same amount. He is currently serving his 66-month prison sentence.

Read the US Department of Justice’s (DOJ) press release here.