The US Department of Justice announced on March 12 that Patrick Walsh, a Florida businessman currently incarcerated, along with ten companies he owned or operated, will pay $20,074,458.70 for violating the False Claims Act by obtaining fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans. This civil settlement follows Walsh’s guilty plea in January 2023 to one count of wire fraud and one count of money laundering related to the fraudulent loans.
Walsh is currently serving a 66-month sentence in federal prison and has been ordered to pay $7.8 million in restitution, with a forfeiture order issued for the same amount.
Some of the entities for which Walsh submitted loan applications were dormant. Walsh also submitted additional EIDL applications in his wife’s name on behalf of certain corporations. In total, Walsh received approximately $7.8 million in fraudulent loans on behalf of various corporate entities. He used the loan proceeds for personal purposes, including purchasing a private island, investing in Texas oil interests, and paying off individual debts.
“Today’s civil resolution and the previously imposed 66-month period of incarceration should serve as a significant deterrent to others like the defendant who would attempt to steal millions of dollars from the American people and exploit Federal relief programs,” said Acting United States Attorney Michelle Spaven for the Northern District of Florida, in the press release. “The Northern District of Florida is committed to protecting government programs from fraud, and we will hold those accountable who steal from the American taxpayers.”
The 10 companies from which Walsh secured fraudulent loans include: American Blimp Company LLC; Walsh Family Land Corp.; Airsign Inc.; Airsign Airship Group LLC; Airsign Group LLC; Airsign Airships Latin America LLC; Airsign Airships Asia Pacific LLC; Airsign Airships Repair Station LLC; Aero Capital LLC; and Eagle Ridge Management Group LLC doing business as Shiloh Oil Company.
The civil settlement comes from a whistleblower compliant filed in 2020 by Andrew Hersh, who worked in information technology services for Walsh.
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