Three companies have agreed to pay more than $5.4 million in restitution and penalties after settling allegations that they applied for and received pandemic-related loans for which they were not qualified, according to a statement from U.S. Attorney Charles Neil Floyd. The settlements do not include an admission of guilt by the companies.
Lotte Duty Free Guam LLC, a division of Lotte Hotel Holdings USA LLC, was one of the companies involved. The company operates a duty-free store at the Guam airport and received two Small Business Administration (SBA) Paycheck Protection Program (PPP) loans after claiming it had fewer than 500 employees, making it eligible for the loans. However, Lotte Duty Free Guam LLC is part of a larger company with too many employees to qualify for PPP loans. As part of the settlement, Lotte will pay $3,437,549.
An Everett, Washington-based subsidiary of multinational aerospace conglomerate UMBRAGROUP S.p.A will pay $1,424,996 to resolve similar allegations that it had too many employees to qualify for its SBA PPP loan.
Podworks Corporation will pay $632,958 related to an SBA PPP loan it received. In April 2025, a whistleblower filed suit in U.S. District Court in Seattle alleging Podworks did not qualify for the loan because some of its business involves the sale of cannabis, which is illegal under federal law. The settlement resolves this allegation.
The civil settlements also address claims brought under the qui tam or whistleblower provisions of the False Claims Act. These provisions allow private parties to file actions on behalf of the United States and receive a portion of any recovery.
Assistant United States Attorneys Matt Waldrop and Kayla Stahman negotiated these resolutions.
