Three Companies to Return Over $5.4 Million in Improperly Obtained Pandemic Loans
Seattle, WA – Three businesses – a Guam-based duty-free retailer, a Washington state aerospace subsidiary, and a Washington-based corporation – have agreed to settlements totaling over $5.4 million to resolve allegations of fraudulently obtaining Paycheck Protection Program (PPP) loans during the COVID-19 pandemic,U.S. Attorney Charles neil Floyd announced today.The settlements do not constitute an admission of guilt by any of the companies involved.
The largest settlement, for $3,437,549, comes from Lotte Duty Free Guam LLC, a division of Lotte Hotel Holdings USA LLC. The company allegedly misrepresented its employee count in its PPP loan application, claiming fewer than 500 employees to qualify for the program. Though, investigators steadfast the Guam store is part of a larger parent company exceeding the employee threshold for eligibility.
UMBRAGROUP S.p.A., through its Everett, Washington subsidiary, will pay $1,424,996 to settle similar claims. the company is accused of receiving a PPP loan despite having a total employee base that disqualified it from the program.UMBRAGROUP S.p.A. is a multinational aerospace conglomerate.
The third settlement involves Podworks Corporation, which will return $632,958 to the government. A whistleblower lawsuit filed in April 2025 alleged Podworks was ineligible for PPP funding due to its involvement in cannabis sales, which remain illegal at the federal level.
These cases were brought forward under the qui tam provisions of the False Claims Act, which allow private citizens to file lawsuits on behalf of the government and perhaps receive a portion of any recovered funds.
“These settlements demonstrate our commitment to ensuring that pandemic relief funds were used appropriately and that those who attempted to exploit the system are held accountable,” said U.S. Attorney Floyd.
Assistant United States Attorneys Matt Waldrop and Kayla Stahman negotiated the settlements on behalf of the United States.
