Dallas-based physician staffing and emergency services companies agree to pay $3.5 million to resolve allegations involving paycheck protection program loans

DALLAS - Dallas-based Integrative Emergency Services Physician Group, PA, along with its affiliated management service organization Integrative Emergency Services, LLC, agreed to pay $3.5 million to resolve allegations that the companies violated the False Claims Act by applying for and receiving loans that they were not eligible for in the Small Business Administration's Paycheck Protection Program (PPP), announced United States Attorney for the Northern District of Texas Ryan Raybould.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. Whether an applicant qualified for a PPP loan depended on various factors, including employee-count size standards for applicants.

The two Integrative Emergency Services entities applied for and received PPP loans in the combined principal amount of approximately $2.8 million in 2021, and the loans were later forgiven in full. The government contended, however, that the companies were not qualified small businesses eligible for these loans because they were related entities and collectively exceeded the applicable size standard.

"It is a priority of my office to root out fraud, waste, and abuse in federal programs wherever they can be found," said U.S. Attorney Ryan Raybould. "We will tirelessly pursue the recovery of any federal funds that were obtained by ineligible entities during the COVID-19 pandemic, and I commend the Small Business Administration for its partnership with my office and its continuing dedication to this important work on behalf of the American taxpayer."

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States and share in a portion of the government's recovery. The qui tam lawsuit is case number 3:25-CV-1246-B in the U.S. District Court for the Northern District of Texas, and the qui tam relator, Blockquote, Inc., will receive approximately $350,000 in connection with the settlement.

This year, the Trump Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration's war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division's False Claims Act enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. False Claims Act matters will continue to be on the forefront of the battle against fraud, and the Civil Division's False Claims work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The matter was handled by Assistant U.S. Attorney Javan Porter, together with Attorney Amber Perez, Office of General Counsel for the Small Business Administration.

The civil claims settled by the agreement are allegations only, and there has been no determination of civil liability.

###