KANSAS CITY, KANSAS - Systemair MFG, Inc., a Florida Corporation with its principal place of business in Lenexa, Kansas, has agreed to pay $2,357,709.00 to resolve allegations that it submitted a false claim to obtain a Paycheck Protection Program loan.

The Coronavirus Aid, Relief, and Economic Security Act established the PPP to provide forgivable loans to eligible small businesses affected by the COVID-19 pandemic. The U.S. Small Business Administration administered the loan program.

To qualify for a First Draw PPP loan, businesses were generally required to meet size limits, including having fewer than 500 employees of affiliated entities. When applying for PPP loans, borrowers were required to certify that they were eligible for the requested loans and that the information they provided was true and accurate.

The settlement resolves allegations that Systemair MFG exceeded the size limits when it obtained a First Draw PPP loan in June 2020 and later sought loan forgiveness. At the time, Systemair MFG was a wholly owned subsidiary of Systemair AB, a company based in Sweden that owns other businesses throughout the world. According to the allegations, Systemair MFG, with these affiliated companies exceeded the program size limits, making the company ineligible for the loan.

"The Paycheck Protection Program was designed to grant relief to small businesses. The Department of Justice and our agency partners continue to review these loans for fraud and those who took advantage of these programs," said United States Attorney Ryan A. Kriegshauser. "Make no mistake, those who use the compassion of the American taxpayer to unjustly enrich themselves will be held to account."

The settlement stems from a qui tam or whistleblower complaint filed under the False Claims Act which permits a private party to file an action on behalf of the United States and receive a portion of any recovery. The case is United States ex rel. Verity Investigations, LLC v. Systemair MFG. Inc., Case No. 2:25-cv-02244.

The U.S. Attorney's Office conducted the investigation in coordination with the Small Business Administration. The investigation was led by Assistant United States Attorney Jon Fleenor.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

The claims resolved by the settlement are allegations only and there has been no determination of liability.