West Coast Dental Administrative Services — PPP Eligibility
Dental Practice Group Pays $6.3 Million for Improper PPP Loans
Source: U.S. Department of Justice
TL;DR: Dental Practice Group Pays $6.3 Million for Improper PPP Loans This case resulted in a $6.3 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.
Summary
West Coast Dental Administrative Services LLC and its former owners paid $6.3 million to resolve DOJ allegations that they violated the False Claims Act in connection with seven improper "second draw" PPP loans and related forgiveness. DOJ alleged the dental practices were ineligible because, when aggregated with affiliates, they collectively employed more than 300 individuals, and that they failed to disclose common ownership across affiliated offices in separate PPP applications. DOJ also described a separate payment by a related real estate investment company to resolve potential FCA liability, alleging the entity was ineligible under PPP rules as a passive investment business and nonetheless sought and received forgiveness.
Our Take
Eligibility cases often come down to ownership mapping and headcount reality—not the narrative in the application. Internally, the best proof is corporate structure documentation, cap tables, payroll and HR rosters across affiliates, and any legal/compliance guidance given before filing. If your organization treated affiliation rules as "paperwork," the exposure often sits in the mismatch between what leadership knew about the enterprise and what the certifications represented.
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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.