United States of America, es rel. Bloequote, Inc. v. Nestor Zenarosa, et al.

Dallas, Texas, civil litigation lawyers represented the Defendants accused of violating the False Claims Act applying for and receiving loans that they were not eligible for in the Small Business Administration’s Paycheck Protection Program (PPP).

Reported by: Kent Morlan

The two Integrative Emergency Services entities applied for and received PPP loans in the combined principal amount of approximately $2.8 million in 2021, and the loans were later forgiven in full. The government contended, however, that the companies were not qualified small businesses eligible for these loans because they were related entities and collectively exceeded the applicable size standard.

Settled for $3.5 million.

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States and share in a portion of the government’s recovery. The qui tam lawsuit is case number 3:25-CV-1246-B in the U.S. District Court for the Northern District of Texas, and the qui tam relator, Blockquote, Inc., will receive approximately $350,000 in connection with the settlement.