Chantilly Business Owner Pays $230K To Settle Fraud Claims: Feds

CHANTILLY, VA — A Chantilly business owner has agreed to pay more than $230,000 to settle civil fraud charges brought against him that federal prosecutors maintain occurred in the procurement of funding through multiple loans in the first round of the Payroll Protection Program.

Sunu P. KC, who is the sole proprietor of KC Investments Group, Inc., agreed to the settlement, which requires him to pay $230,414.65 to deal with the charges of fraud, Raj Parekh, the acting U.S. Attorney for the Eastern District of Virginia said in a news release on Wednesday.

Federal officials said that in April 2020, KC applied for loans in both his current company, KC Inc. and his former company, KC Investments Group, Inc., LLC, which was not operating at the time he applied for the PPP funding, prosecutors said. Officials also said that in the loan application, the business’ owner said his company would not receive multiple loans, but both loans that were procured were deposited into KC Inc.’s, bank account.

The PPP was established in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act and the program was run by the Small Business Administration. Each qualified business was permitted to only receive one loan during the first phase of the program which ran between February and December of last year.

As part of the resolution to settle the fraud claims, KC was ordered to repay the second PPP loan back in 30 days with the loan processing fee paid to the bank by the SBA as well as an additional amount that were part of the loan process, prosecutors said.