DOJ and Vix Technology (USA) Inc. resolve allegations of Paycheck Protection Program fraud

Seattle – The U.S. Department of Justice and Vix Technology (USA) Inc. today resolved a qui tam False Claims Act lawsuitalleging Vix had too many employees to qualify for the $1,066,900 Paycheck Protection loan it received on May 18, 2021. Vix will pay $2,144,114 to resolve the matter. The relator of the qui tam case will receive a percentage of the settlement amount. The relator is the San Francisco company Blockquote that produces public interest internet research, news reporting and investigations.

According to the settlement agreement, on June 24, 2024, Blockquote filed a qui tam action alleging that Vix Technology had improperly received a COVID 19 Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration.  To be eligible for the loan a business had to have fewer than 300 employees. Vix has more than 300 employees in its operations around the world and therefore did not qualify for the loan.

Vix Technology is an Australian company that designs, supplies, and operates automated fare collection systems, intelligent transportation systems access, payment, and passenger information display systems for the public transit industry. The company’s U.S. Operations are headquartered in Tempe, Arizona.

Vix does not admit any wrongdoing, but to avoid the uncertainty of litigation, entered into the agreement with the United States paying double damages of $2,144,114. Vix will also pay $20,000 to the relator, Blockquote, for attorney fees and costs.

“The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration, working with the U.S. Attorney’s Office and with private individuals who uncover fraudulent conduct, to recover the product of fraud and penalties as well,” said SBA General Counsel Wendell Davis.

The settlement was negotiated by Assistant United States Attorney Nickolas Bohl.