Evergreen Reporter

Patrick Walsh, a businessman from Florida, along with ten companies he owned or operated, has agreed to a consent judgment of $20,074,458.70. This settlement resolves allegations of False Claims Act violations related to fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications. The companies involved include American Blimp Company LLC; Walsh Family Land Corp.; Airsign Inc.; Airsign Airship Group LLC; Airsign Group LLC; Airsign Airships Latin America LLC; Airsign Airships Asia Pacific LLC; Airsign Airships Repair Station LLC; Aero Capital LLC; and Eagle Ridge Management Group LLC doing business as Shiloh Oil Company.

The PPP and EIDL programs were created under the CARES Act in March 2020 to provide emergency financial assistance to small businesses affected by the COVID-19 pandemic. These programs are administered by the U.S. Small Business Administration (SBA). PPP loans were designed as low-interest forgivable loans for specific business expenses, while EIDL offered low-interest loans to businesses in disaster-affected areas.

Walsh admitted to submitting false information about employee rosters and payrolls on loan applications for his companies, some of which were inactive or dormant. He also submitted additional EIDL applications using his wife's name for certain corporations. Approximately $7.8 million in fraudulent loans were obtained through these actions, with funds used for personal purchases such as a private island and investments in Texas oil interests.

In January 2023, Walsh pleaded guilty to wire fraud and money laundering charges related to these fraudulent loans and received a 66-month federal prison sentence. He was also ordered to pay $7.8 million in restitution with an equivalent forfeiture order.

"PPP and EIDL loans were intended to help small businesses during the pandemic," stated Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. "The department is committed to holding accountable those who undermined the purpose of these programs by knowingly obtaining and retaining loan proceeds for which they were not eligible."

Acting United States Attorney Michelle Spaven for the Northern District of Florida emphasized that this resolution should deter others from exploiting federal relief programs: “Today’s civil resolution and the previously imposed 66-month period of incarceration should serve as a significant deterrent...”

Wendell Davis, General Counsel for the SBA, remarked on the importance of protecting taxpayer-funded programs: “This settlement is a victory over bad actors seeking to exploit taxpayer-funded programs.”

The case originated from a whistleblower complaint filed by Andrew Hersh in 2020 under qui tam provisions of the False Claims Act allowing private individuals to sue on behalf of the government.

This resolution resulted from collaboration between various branches within the Justice Department's Civil Division, including assistance from SBA offices.

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