Ugly Christmas Sweater among Michigan companies ordered to pay settlement over pandemic assistance
Federal officials have reached a total of $1.9 million in civil agreements with four Michigan businesses in disputes over eligibility for pandemic-era assistance.
The list includes Ugly Christmas Sweater, Your Fantasy Warehouse and Costume Agent, owned by Firas "Fred" Hajjar of Commerce Township.
Delta Staffing of Clarkston, owned by Bradley McKouen, was involved in a separate but similar case, according to a press release issued Monday from the U.S. Attorney's Office for the Eastern District of Michigan.
All four businesses were alleged to have violated the terms of the 2020 Paycheck Protection Program Act, an emergency loan assistance program intended for small businesses that began at the onset of the COVID-19 pandemic.
"When you steal from the American taxpayer, we are going to make sure that you are the one who pays the price," U.S. Attorney Jerome F. Gorgon, Jr., for the Eastern District of Michigan, said in his statement about the investigations.
The civil settlements resolve a previously sealed lawsuit that was filed under whistleblower provisions in federal law. Collectively, the four businesses will pay $1,933,448 to settle the allegations. The whistleblower will receive 15% of the total settlement amount, the report said. The claims resolved by the settlement are allegations only; there has been no determination of liability, the press release said.
Hajjar's three businesses were not eligible for PPP loans because he had failed to disclose that he within the preceding five years, the district attorney's office said. Despite those circumstances, he obtained PPP loans and loan forgiveness totaling $504,482.
McKouen's business was not eligible for PPP loans as he had failed to disclose that he was placed on supervised release of felony tax evasion, the district attorney's office said. Despite those circumstances, he obtained PPP loans and loan forgiveness totaling $462,241.
