Orono Resident Agrees to Pay Over $228,000 to Settle Allegations of Fraudulently Obtaining Pandemic Relief Funds

PORTLAND, Maine:  U.S. Attorney Darcie N. McElwee today announced that Jacob Hennie of Orono has agreed to pay $228,338.30 to settle a civil fraud case alleging that he fraudulently applied for, received and obtained forgiveness for two Paycheck Protection Program (PPP) loans, and fraudulently applied for and received a COVID-19 Economic Injury and Disaster Loan (EIDL) Emergency Advance.

The United States filed a complaint against Hennie in the United States District Court for the District of Maine on April 14, 2023. The complaint alleged that in July 2020, Hennie misrepresented that he operated a business with nine employees to receive a $9,000 EIDL Emergency Advance when he did not operate any business. In February 2021, Hennie obtained a first-draw PPP loan in the amount of $18,625 based on alleged misrepresentations in the loan applications. He then obtained a second-draw PPP loan in the amount of $20,833 based on alleged misrepresentations related to fictitious business expenses. Hennie received forgiveness for both PPP loans through allegedly misrepresenting how the loan funds were used. 

The complaint against Hennie was brought by the United States pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. For FCA violations assessed after January 30, 2023, the minimum penalty per violation is $13,508.

FIRREA provides that the Attorney General may recover civil penalties against persons who knowingly make a false statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a loan, money, or anything of value under certain SBA programs, including the PPP. For FIRREA violations assessed after January 30, 2023, the maximum penalty per violation is $2,372,677.   

The complaint filed by the United States is a result of the District of Maine’s ongoing efforts to identify and investigate fraudulently obtained pandemic relief funds. Recent amendments to federal law have extended the statute of limitations for civil and criminal fraud enforcement actions concerning PPP and EIDL loans from six to ten years. The civil action is docketed United States v. Jacob Hennie, 23-cv-00171-JAW (D. Me.). 

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