FRESNO - Four California agricultural companies and their owner have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly submitting false information in support of the Paycheck Protection Program (PPP) loan applications, U.S. Attorney Phillip A. Talbert announced.
The companies, which grow, harvest, process, pack, ship, and sell processed and fresh tomatoes, among other crops, are Mendota Land Co., Sweetwood Farm Co. LLC, Sweetwood Farm Inc., and Seasholtz Co. LLC. The companies and their owner John Seasholtz (collectively, “Seasholtz”) are alleged to have improperly inflated the employee headcount on PPP loan applications by impermissibly including non-employee contract workers who were, in fact, employed by other, unrelated entities.