Hemisphere GNSS — PPP Certification Violations
GPS Technology Company Pays $2.6 Million Over False PPP Certifications
Source: U.S. Department of Justice
TL;DR: GPS Technology Company Pays $2.6 Million Over False PPP Certifications This case resulted in a $2.6 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.
Summary
Hemisphere GNSS (USA) Inc. agreed to pay $2.6 million to settle DOJ allegations that it provided false information to apply for and receive forgiveness of a second-round PPP loan. DOJ alleged that, in its February 2021 application, Hemisphere made certifications concerning People's Republic of China-related ownership and board membership that were false, making the company ineligible for the loan; DOJ stated the company then sought and received forgiveness of the full amount. DOJ also noted the matter involved a qui tam case.
Our Take
Certification cases tend to originate with people who know the corporate facts: legal, finance, or governance staff who saw the certifications didn't match ownership or board reality. These cases are usually documented in black and white—applications, cap tables, board records, diligence materials, and internal reviews that flagged the mismatch. If you recognize a "check the box" approach to eligibility certifications, preserve the underlying governance documents and any internal discussion about how to interpret the rule.
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Notice
The summaries above are based on publicly available information released by the U.S. Department of Justice and are provided for informational purposes only. They do not constitute legal advice, investigative findings, or allegations by Disclosure Strategy. Our commentary reflects general, experience-based observations about how False Claims Act matters commonly arise and is not a statement about any party's liability.