Nikon SLM Solutions NA, Inc. has agreed to pay over $1.3 million to settle allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA). The announcement was made by U.S. Attorney Benjamin L. Wallace in Wilmington, Delaware.
The PPP was created in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to help small businesses maintain payroll and cover expenses during the COVID-19 pandemic. Eligibility for the program depended on business size, including employees of both domestic and foreign affiliates. In early 2021, Congress allowed a second round of loans with stricter eligibility requirements for certain small businesses that had already received an initial loan.
SLM is a subsidiary of a global metal additive manufacturing company based in Lübeck, Germany. According to the United States, SLM was not eligible for the second draw PPP loan because it and its foreign affiliates had more than 300 employees, exceeding the program’s size limits. After the conduct under investigation, SLM’s parent company was acquired by Nikon Corporation of Japan.
“PPP was established to provide necessary support for American small businesses during the COVID-19 pandemic,” said U.S. Attorney Wallace. “When larger, international companies sought and obtained those loans, they frustrated the purpose of the program and deprived qualifying small businesses of much needed funds to keep American workers employed. Our office will continue to investigate and aggressively seek to recover funds that were obtained from the Paycheck Protection Program by ineligible borrowers.”
The settlement resolves claims brought under the False Claims Act’s whistleblower provisions, which allow private parties—known as relators—to file actions on behalf of the United States and receive part of any recovery. The related case is United States ex rel. Verity Investigations, LLC v. Nikon SLM Solutions NA, Inc., 25-cv-103-CFC (D. Del.), with the relator receiving a share of this settlement.
Civil Chief Dylan J. Steinberg handled this matter.
People with information about potential COVID-19 fraud are encouraged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via their online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The government notes that these are allegations only; there has been no determination of liability.
A copy of this press release and settlement agreement can be found on the website of the U.S. Attorney’s Office for the District of Delaware.
