West Coast Dental Administrative Services LLC, which operates more than 40 dental and specialist locations in Southern California, and its affiliates have paid $6.3 million to resolve alleged violations of the False Claims Act (FCA). The alleged violations were in connection with loans received by the affiliated offices pursuant to the Paycheck Protection Program (PPP).
The PPP is an emergency loan program established in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and intended to support small businesses during the early days of the COVID-19 pandemic. The government alleged that the affiliates improperly obtained seven loans under the PPP based on false certifications as to eligibility. West Coast and its affiliates also allegedly failed to disclose common ownership of the offices in their separate applications for PPP loans.
The settlement resolves claims brought under the qui tam (whistleblower) provisions of the FCA by two California attorneys through a limited liability company. The LLC will receive about $507,000 as its share of the settlement.