ALEXANDRIA, Va. — A Virginia company has agreed to pay $31,000 in damages and civil penalties to settle allegations that it improperly secured multiple loans to help it during the COVID-19 pandemic, prosecutors said.
The settlement resolves allegations that Zen Solutions Inc. of Arlington applied for and received a second, duplicative loan through the Paycheck Protection Program loan in 2020, said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, in a news release on Friday.
According to the news release, Zen Solutions provides staffing services for information technology, data analytics, cyber security and litigation support. The settlement resolved a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to sue on behalf of the U.S. for false claims and share in a portion of the government’s recovery.
The settlement also requires the company to fully repay the duplicative $192,000 loan it received.
