California Home Health Agency Owner to Pay $399K in False Claims Settlement

Allstar Health Providers Inc. and owner Maria Chua agreed to pay nearly $400K to resolve claims of receiving two PPP loans in 2020.Photo byPeter ThomasonUnsplash

Allstar Health Providers Inc., a home health agency based in Rancho Cucamonga, and its owner, Maria Chua, have agreed to pay $399,990 to the United States, the U.S. Attorney's Office for the Central District of California announced today.

The settlement resolves allegations that the company violated the False Claims Act by knowingly receiving and retaining more than one Paycheck Protection Program loan before Dec. 31, 2020.

The U.S. government alleged that Chua submitted two PPP loan applications on behalf of Allstar Health Providers in May 2020.

In both applications, she certified that the company would not receive more than one loan during that period. Despite these certifications, the agency received two PPP loans in 2020 and allegedly retained the second loan improperly.

According to the U.S. Attorney’s Office, Allstar Health Providers failed to repay the duplicate loan, resulting in a loss to the Small Business Administration when it purchased the loan guaranty.

“When an individual violates the False Claims Act by fraudulently receiving and retaining PPP loans, taxpayers lose,” said U.S. Attorney Martin Estrada. “Those who violate the law by fraudulently receiving and retaining PPP loans will be held accountable.”

The settlement resolves claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by J. Bryan Quesenberry. He will receive approximately $60,000 from the settlement, the department stated.

“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.

“The department is committed to pursuing those who knowingly violated the requirements of the PPP or other COVID-19 assistance programs.”