Gainesville Man Pays $350,000 To Settle PPP Fraud Case: Prosecutors

GAINESVILLE, VA — A Gainesville business owner will pay $350,000 to settle claims that he falsified documents to obtain Paycheck Protection Program loans during the COVID-19 pandemic, the U.S. Attorney's Office for the Eastern District of Virginia announced.

Prosecutors noted that the settlement did not determine civil liabilities from the case.

Authorities identified the business owner as Joe Slaiby. Slaiby received seven loans for four of his businesses, prosecutors said.

The U.S. Attorney's Office claimed that Slaiby submitted PPP applications with falsified income and fake payroll documents.

Investigators said Slaiby worked with Bennie Magee to obtain the loans. Magee, a Manassas business owner, was sentenced to 5 years in prison earlier this month for his role in COVID fraud schemes.

Read more: Manassas Man Sentenced For $7M COVID Fraud Scheme

Authorities began investigating Slaiby after a whistleblower filed a lawsuit under the Fair Claims Act.

"The False Claims Act provides whistleblowers with a share of the government’s recovery," the U.S. Attorney's Office said. "The relator here will receive a share of this settlement."