The U.S. Department of Justice announced that the U.S. District Court for the Central District of California granted the United States summary judgment against JMG Investments Inc. and its owner, Jeffrey Schwartz, for violating the False Claims Act in connection with improperly obtaining and retaining more than one Paycheck Protection Program (PPP) loan in 2020. The court ordered the defendants to pay USD 1,565,294.38 in damages and penalties. The court found that the defendants knowingly received multiple PPP loans before Dec. 31, 2020 despite PPP rules and applicant certifications limiting borrowers to one PPP loan during that period. The United States alleged Schwartz and JMG Investments failed to repay the duplicate loan as required, resulting in a loss to the Small Business Administration when it purchased the loan guaranty; the court ruled the United States was entitled to judgment on all claims asserted. The judgment resolves claims brought under the False Claims Act’s qui tam provisions, and the whistleblower share has not yet been determined.
U.S. Department of Justice 2026-01-26
U.S. Department of Justice wins False Claims Act judgment over duplicate PPP loans, securing USD 1.57 million from California rehabilitation center and owner
The U.S. Department of Justice announced that the U.S. District Court for the Central District of California granted summary judgment against JMG Investments Inc. and its owner, Jeffrey Schwartz, for violating the False Claims Act by improperly obtaining multiple Paycheck Protection Program loans in 2020, ordering them to pay USD 1,565,294.38 in damages and penalties. The court found the defendants knowingly violated PPP rules, causing a loss to the Small Business Administration, with the whistleblower share yet to be determined.