Medical Group to Pay $2.8 Million to Settle Covid Relief Fraud

Fairfax Radiological Consultants agreed to pay $2.8 million to settle False Claims Act allegations that the group falsely reported its payroll costs to receive full forgiveness of a $6.7 million Paycheck Protection Program loan, the Justice Department announced Wednesday.

According to the DOJ, FRC employed over 500 individuals in 2019, allowing it to apply for a $6.8 million PPP loan. However, at the time of the loan application in April 2020, FRC employed less than 100 people. The DOJ said FRC falsely represented its eligible payroll costs for 98 employees in its loan forgiveness application, enabling FRC to receive ...