Civil settlement

Ohio manufacturer to pay $3.04 million to settle PPP False Claims Act allegations

Murotech Ohio Corporation agreed to pay $3,039,615 over allegations it understated its headcount, counting affiliates, to obtain and have forgiven PPP loans. There has been no determination of liability.

Not legal advice. Program rules are set by the government sources linked on this page.

On October 21, 2026, the U.S. Attorney’s Office for the Northern District of Ohio said Murotech Ohio Corporation, an automotive component parts manufacturer based in St. Marys, Ohio, agreed to pay $3,039,615, of which $1,085,577 is restitution, to resolve False Claims Act allegations that it knowingly provided false information to obtain Paycheck Protection Program loans and loan forgiveness. 1 Source 1

According to the release, the company’s May 2020 application certified fewer than 500 employees and its January 2021 application certified fewer than 300 employees, but the company exceeded those limits when affiliates were counted. It then applied for forgiveness of both loans with the same employee certifications. 1 Source 1

The settlement resolves two whistleblower lawsuits, United States ex rel. GNGH2, Inc. v. Murotech Ohio Corporation, No. 3:24-CV-1592, and United States ex rel. Verity Investigations, LLC v. Murotech Ohio Corporation, No. 3:24-CV-2245. The release says the relators will receive $151,980.75 each, and that the claims resolved are allegations only with no determination of liability. 1 Source 1

Sources

  1. Ohio Auto Parts Manufacturer Agrees to Pay $3M+ To Resolve False Claims Act Allegations Relating to Paycheck Protection Program Loans, October 21, 2026 U.S. Department of Justice