Manufacturer to pay $2.6 million for denying ties to China when applying for PPP loan
Hemisphere GNSS (USA) Inc. has entered into an agreement with the U.S. Department of Justice (DOJ) to resolve allegations that the company provided false information when applying for and receiving forgiveness of a Paycheck Protection Program (PPP) loan. The DOJ claims that the company, which manufactures satellite global positioning systems, violated the False Claims Act in February 2021 when it applied for a second round PPP loan. Hemisphere stated that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in the company. Additionally, Hemisphere asserted that it did not “retain as a board member a person who is a resident of the People’s Republic of China.” Both of these claims were determined to be false, thus negating the company’s eligibility for the PPP loan, which was later forgiven. To resolve these issues, Hemisphere has agreed to pay $2.6 million.
What people are saying
In a recent quote, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said, “PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open. When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.”
U.S. Attorney Gary M. Restaino for the District of Arizona added, “Legitimate PPP loans saved small businesses across America. But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.”
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About the Author
Alexis GajewskiAlexis Gajewski
Senior Content Strategist
Alexis Gajewski is a manufacturing writer and editor with nearly 20 years of experience covering the people, practices, and technologies that keep industrial facilities running. For more than a decade, she served as Senior Content Strategist for Plant Services, creating content for plant managers, engineers, and maintenance professionals on a variety of industrial topics.
During her tenure, Alexis worked to develop the brand’s digital strategy and helped launch and produce Great Question: A Manufacturing Podcast. She also created The Lighter Side of Manufacturing, a weekly blog that explored the inventive and sometimes humorous side of the industry.
Alexis co-founded Influential Women in Manufacturing, a recognition program that honored 49 women in its first two years, earned an industry award for Best Product Launch, and received a proclamation from Illinois Governor JB Pritzker and a commendation from U.S. Senator Tammy Duckworth.
She also led newsroom operations and development at a large media company where she set editorial standards, developed training curriculum, and helped support AI adoption for more than 150 editors across 80+ brands spanning manufacturing, industrial processing, automation, and more.
Additionally, Alexis works as a freelance writer and editor, and her areas of interest include continuous improvement, the skilled workforce, and the role of emerging technology on the plant floor.
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