ID Logistics US Inc. will pay $2.36 million to resolve allegations it improperly obtained a COVID-era loan from the U.S. Small Business Administration, the U.S. Attorney\u2019s Office for the Middle District of Pennsylvania announced Tuesday in a news release.<\/p>\n
This settlement resolves a lawsuit originally filed under the False Claims Act, per the release.<\/p>\n
ID Logistics acquired Scranton-based Kane Logistics, formerly Kane Is Able, in April 2022, based on an enterprise value of $240 million.<\/p>\n
Upon completion of the transaction, Kane Logistics became part of ID Logistics US. Kane was founded in 1930 by the Kane family. The business was previously acquired by Harkness Capital Partners in 2019 with the goal of building the company\u2019s platform and accelerating growth.<\/p>\n
ID Logistics US Inc. is a subsidiary of ID Logistics Group SA, a French company founded in 2001 which has at least 15 other affiliated companies around the world, according to the U.S. Department of Justice.<\/p>\n
The Paycheck Protection Program \u2014 part of the Coronavirus Aid, Relief, and Economic Security Act enacted in March 2020 \u2014 authorized forgivable loans, to small businesses suffering economic effects caused by the COVID-19 pandemic, to help with job retention and other expenses, per the DOJ.<\/p>\n
If the loan proceeds were used for eligible expenses, the Small Business Administration would forgive the loan balance and accrued interest, DOJ officials said. Additionally, whether an applicant qualified as a small business was partially determined by its number of employees, including any domestic and foreign affiliates.<\/p>\n
ID Logistics US Inc. submitted an application for a PPP loan certifying it had fewer than 500 employees, together with its affiliates, however it was determined to have more than 500 and therefore was not eligible for the loan, U.S. Attorney Brian D. Miller said.<\/p>\n
ID Logistics US Inc. fully cooperated to resolve the matter once made aware of the investigation, DOJ officials said.<\/p>\n","protected":false},"excerpt":{"rendered":"ID Logistics US Inc. will pay $2.36 million to resolve allegations it improperly obtained a COVID-era loan from…\n","protected":false},"author":2,"featured_media":268493,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[60,201,182,28,178,180,179,181],"class_list":["post-268492","post","type-post","status-publish","format-standard","has-post-thumbnail","category-scranton","tag-business","tag-lackawanna-county","tag-local-news","tag-pennsylvania","tag-scranton","tag-scranton-headlines","tag-scranton-news","tag-top-stories-stt"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/268492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/comments?post=268492"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/posts\/268492\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media\/268493"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/media?parent=268492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/categories?post=268492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-pa\/wp-json\/wp\/v2\/tags?post=268492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}