CHARLOTTE, N.C. – Taiji Group USA, Inc. (Taiji Group), a paper converter in Conover, N.C., has
agreed to pay $460,395.09, to resolve allegations that it violated the False Claims Act by knowingly
providing false information to apply for a Paycheck Protection Program (PPP) loan to which the
company was not entitled, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western
District of North Carolina.
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic
Security (CARES) Act, to provide forgivable loans to small businesses struggling to pay employees
and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. When applying for PPP
loans, borrowers were required to certify the truthfulness and accuracy of all information provided
in their loan applications.
In March 2021, Taiji Group applied for a second round PPP loan and certified that it was eligible to
receive the loan. Among other certifications, Taiji Group certified that no “entity created in or
organized under the laws of the People’s Republic of China” owned or held 20 percent or more of
the economic interest in Taiji Group. The company also certified that it did not retain, as a member
of its board of directors, a person who was a resident of the People’s Republic of China. At the time
of its application, however, both of these certifications were allegedly false. For this reason, Taiji
Group was not eligible for the $271,165 second round PPP loan that it received. After receiving the
PPP loan, Taiji Group sought and received forgiveness of the total amount of the loan.
“PPP loans were a lifeline for many businesses during the COVID-19 pandemic,” said Acting U.S.
Attorney Cameron. “Ineligible businesses that improperly obtained federal aid loans harmed the
taxpayers who funded these programs and reduced the resources available for businesses that were
eligible to receive assistance. Our office is committed to rooting out fraud and holding accountable
businesses that wrongfully benefited from these federal programs.”
This matter arose from a lawsuit filed under the qui tam or whistleblower provision of the False
Claims Act, which permits private parties, called relators, to file suit on behalf of the United States
for false claims and share in a portion of the government’s recovery. The qui tam case is captioned
United States of America ex rel. Sidesolve, LLC, v. Taiji Group USA, Inc., W.D.N.C. Case No. 5:24-
cv-98.
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