In a significant move to address pandemic relief fraud, federal prosecutors in South Carolina have secured more than $7.9 million in settlements from businesses accused of improperly obtaining Paycheck Protection Program (PPP) loans. These settlements are part of a broader national initiative to recover funds misused during the COVID-19 pandemic.
Local Businesses Under Scrutiny
U.S. attorney Bryan P. Stirling announced on May 28, 2026, that the District of South Carolina had reached multiple civil settlements with companies accused of violating the False Claims Act. These companies allegedly provided false information to secure PPP loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The settlements involve more than $5 million in PPP loans issued to South Carolina-based companies. Among them, EuWe Eugen Wexler US Plastics Inc. in Williamston agreed to pay $2.175 million after allegedly obtaining a $1.62 million loan despite exceeding employee eligibility limits when considering its German parent company and subsidiaries.
Charleston-based Mankiewicz Coatings, LLC settled for $1.85 million over allegations of improperly securing a $1.22 million loan, while Laurens-headquartered Fukoku America, Inc. agreed to pay $1.8 million related to a $1.21 million loan involving undisclosed affiliates connected to its Japanese parent company.
Other companies involved include Spartanburg-based AWL Automation, LLC, which agreed to pay $1.1 million, and Stoba USA Corp. in Charleston, which settled for nearly $994,000. Both were accused of exceeding employee limitations through affiliations with foreign parent corporations.
National Efforts to Combat Fraud
The settlements are part of a nationwide push by the Trump administration to recover fraudulent pandemic-relief money. The U.S. Small Business Administration (SBA) has referred approximately 562,000 suspected fraudulent loans to the U.S. Department of Treasury for collection, marking the largest referral package in SBA history.
Federal authorities, including assistant U.S. attorneys Austin E. McCullough and James C. Leventis Jr., with assistance from the SBA Office of General Counsel, are focusing on pandemic fraud enforcement as they continue to unravel abuse tied to emergency COVID-era spending programs.
These actions underscore the commitment to protect taxpayers and ensure that federal funds are used appropriately. The claims resolved by these civil settlements are allegations only, with no determination of liability made.
Original reporting: FITSNews — read the source article.
