DETROIT, MI -- LaFontaine Management, Inc. Has agreed to pay $1,500,000 to settle allegations that it violated the False Claims Act by making false statements to the U.S. Small Business Administration to obtain a Paycheck Protection Program loan, the U.S. Attorney’s Office announced.

LaFontaine Management, Inc. Is affiliated with the network of metro Detroit auto dealerships known as the LaFontaine Automotive Group.

The company obtained a first draw PPP loan for $1,000,000 in April 2020, but prosecutors alleged LaFontaine Management falsely certified it was eligible for the first draw loan and loan forgiveness due to having more than 500 employees, if you count its affiliates.

Businesses were not eligible for first draw PPP loans if they qualified as franchises, according to a news rele

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