3 companies settle allegations they received illegal pandemic-related loans
Dec 10, 2025, 5:00 AM
The U.S. Department of Justice logo is seen on a podium before a press conference. (Photo: Julia Demaree Nikhinson, The Associated Press)
(Photo: Julia Demaree Nikhinson, The Associated Press)
Three different companies linked to Washington settled allegations that they applied for and received illegal pandemic-related loans.
The companies agreed to pay back more than $5.5 million in restitution and penalties, according to a news release from the U.S. Attorney’s Office for the Western District of Washington.
Duty-free store found ineligible for loans
One of the companies was Lotte Duty Free Guam LLC., a division of Lotte Hotel Holdings USA LLC.
Lotte Duty Free Guam LLC received two Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, according to the attorney’s office, citing the settlement agreement.
Lotte, which operates a duty-free store at the Guam airport, claimed to have fewer than 500 employees, making them eligible for the loans. However, it was discovered the Guam store is part of a much larger company that has too many employees to qualify for the loans. Lotte agreed to pay $3,437,549.
Everett company settles allegations
An Everett company that is a subsidiary of multinational aerospace conglomerate UMBRAGROUP S.p.A also allegedly had too many employees to qualify for the SBA PPP loan it received. Therefore, the company will pay $1,424,996.
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Podworks Corporation agrees to settle
Lastly, Podworks Corporation has agreed to pay the government $632,958 for an SBA PPP loan it received.
A relator filed a lawsuit in U.S. District Court in Seattle in April, accusing Podworks of not qualifying for the PPP loan because some of its business involves the sale of cannabis, which is illegal under federal law. The settlement will resolve the allegation.
“These civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act,” the news release stated. “Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.”
The attorney’s office noted the settlements are not an admission of guilt.
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