Murotech Ohio agrees to $3 million settlement over PPP loan allegations

A St. Marys automotive parts manufacturer has agreed to pay more than $3 million to resolve federal allegations involving Paycheck Protection Program loans and loan forgiveness.

The U.S. Attorney’s Office for the Northern District of Ohio said Murotech Ohio Corporation agreed to pay $3,039,615. More than $1 million of the settlement will be restitution to the federal government.

Prosecutors alleged Murotech provided inaccurate employee totals when applying for two PPP loans.

The company’s first application, submitted in May 2020, certified that it had fewer than 500 employees. A second application submitted in January 2021 certified that the company had fewer than 300 employees.

Federal officials alleged Murotech exceeded both limits when employees of affiliated companies were included. The company later applied to have both loans forgiven.

The settlement resolves two lawsuits filed under the whistleblower provisions of the False Claims Act. The two whistleblowers will each receive nearly $152,000 from the government’s recovery.

Murotech Ohio is a subsidiary of Japan-based Muro Corporation.

Federal officials emphasized that the claims resolved through the settlement are allegations only and that there has been no determination of liability.