A Mississippi-based trucking company accused by the federal government of making false statements to receive a Paycheck Protection Program loan contends that Blue Ridge Bank N.A. breached its fiduciary duty when processing the loan application.
Congress enacted the PPP in March 2020 to provide emergency financial support to those suffering the economic effects caused by the Covid-19 pandemic. Federal prosecutors allege in a complaint filed June 10 that Bailey’s Trucking LLC and Xavier Bailey misrepresented the company’s payroll costs in order to receive a PPP loan, in violation of the False Claims Act.
In a third-party complaint filed Monday, Bailey’s ...
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