DEC Announces Temporary Closure of Shellfish Harvest in Three Mile Harbor for Annual Fireworks Show

Three Mile Harbor Temporary Closure Begins July 12; Expected to Reopen July 17

The New York State Department of Environmental Conservation (DEC) today announced the temporary closure of shellfish harvesting for Three Mile Harbor in the town of East Hampton, Suffolk County, during the upcoming Clamshell Foundation Fireworks event. The closure begins at sunrise on Saturday, July 12, and continues through Wednesday, July 16. During this time, no shellfish may be taken from Three Mile Harbor. 

Since 1993, DEC closes Three Mile Harbor to shellfishing on the day of the fireworks, as well as the following four days. The annual event draws hundreds of boaters each year, including many that remain in the area overnight. 

DEC enacts the temporary closure due to the increased potential for contamination of shellfish beds from the large number of recreational boats that gather for this popular event. Potential discharges of waste from marine sanitation devices (toilets) may temporarily contaminate nearby shellfish beds with pathogenic bacteria or viruses, rendering the shellfish unsafe for human consumption. 

Boaters are reminded that all of the Peconic-Gardiners Bay area, including Three Mile Harbor, is a No-Discharge Zone and they are required to use pump-out facilities. A No-Discharge Zone is a body of water designated by the U.S. Environmental Protection Agency (EPA) where discharges of treated or untreated boat sewage are prohibited. The Town of East Hampton Trustees operate a pump-out boat that can be reached by using marine radio, VHF Channel 73, or calling 631-644-7162. The Town Harbormaster's office at Gann Road has a self-serve facility. Both are available at no cost to boaters. 

DEC will designate the following area as closed to the harvest of shellfish beginning at sunrise on Saturday, July 12, and continuing through Wednesday, July 16:

• All the normally certified shellfish lands in Three Mile Harbor, including tributaries, lying south of a line extending due east from the northern end of the western jetty at the inlet of Three Mile Harbor, to the northern end of the eastern jetty, on the eastern side of the inlet. This area of approximately 935 acres includes the entrance channel into the harbor. 

Shellfish harvesting is expected to resume in this area at sunrise on Thursday, July 17. If the event is canceled or postponed due to inclement weather, DEC may rescind the closure and reopen the areas to harvesting earlier than July 17. 

A recorded message advising the public about temporary closures of any shellfishing areas in New York State is accessible 24 hours a day by calling (631) 444-0480. The recorded message also advises harvesters when such areas have reopened. Information, including maps showing the affected areas, is available on DEC's website. 

A full list of No Discharge Zones in New York State including other Long Island waters, can be found on the U.S. EPA's website. 

View the Temporary Shellfish Closures maps on DEC's website. 

Two California Residents Plead Guilty in Connection with $16M Hospice Fraud Scheme and Money Laundering Scheme

 

Two California residents pleaded guilty yesterday in connection with their roles in defrauding Medicare of nearly $16 million through sham hospice companies and to laundering the proceeds of the fraud as part of a multi-year scheme.

According to court documents, Karpis Srapyan, 35, of Winnetka, California, conspired with others, including co-defendants Petros Fichidzhyan and Juan Carlos Esparza, to bill Medicare for hospice services that were not medically necessary and never provided. To conduct their fraudulent scheme, they used a series of four sham hospice companies: one owned by Esparza and the other three owned by foreign nationals but controlled by the defendants. Srapyan and his co-defendants concealed the scheme by using foreign nationals’ personal identifying information to open bank accounts, submit information to Medicare, and sign property leases. They also misappropriated names and other identifying information of several doctors, two of whom were deceased, to fraudulently bill Medicare for purported hospice services. In total, Medicare paid the fake hospice companies nearly $16 million.

Fichidzhyan, Esparza, and Srapyan worked with others to launder the fraudulent proceeds from their hospice scheme. Susanna Harutyunyan, 39, of Winnetka, was aware that her husband and co-defendant Mihran Panosyan was involved in illegal activity with Srapyan and Fichidzhyan. As part of the money laundering scheme, Harutyunyan and her co-defendants maintained fraudulent identification documents, bank documents, checkbooks, and credit and debit cards in the names of purported foreign owners in the residence where she and Panosyan lived and another residence that was owned in her name. Srapyan conducted dozens of financial transactions, totaling approximately $3.2 million, moving funds between accounts in the names of the sham hospice companies, accounts in the names of foreign nationals that were controlled by the defendants, and other accounts involved in the money laundering scheme. Harutyunyan knowingly spent fraudulent proceeds on personal expenses, including payments for a BMW automobile.

Srapyan pleaded guilty to conspiracy to commit health care fraud and money laundering and is scheduled to be sentenced on Oct. 6. He faces a maximum penalty of 20 years in prison. Harutyunyan pleaded guilty to money laundering and is scheduled to be sentenced on Nov. 17; she faces a maximum penalty of 10 years in prison. A federal district court judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors. Harutyunyan faces deportation.

Co-defendant Petros Fichidzhyan previously pleaded guilty to health care fraud, aggravated identity theft, and money laundering. In May, Fichidzhyan was sentenced to 12 years in prison. Co-defendant Mihran Panosyan pleaded guilty to money laundering in June and is scheduled to be sentenced Sept. 8. Co-defendant Juan Carlos Esparza’s change of plea hearing is scheduled for July 14.

The guilty pleas today are the most recent convictions in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.  

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorneys Michael Bacharach, Sarah E. Edwards, and Allison L. McGuire of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Tara B. Vavere for the Central District of California is handling asset forfeiture.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

CITY OF NEW YORK TAKES ACTION TO SUPPORT PUBLIC SCHOOL STUDENT ARRESTED AFTER ATTENDING ROUTINE IMMIGRATION HEARING

 

Amicus Brief Outlines City is Less Safe When Immigrants Are Afraid to Access Basic Services and Attend Court Hearings

 

11^th Grader Detained Over a Month Ago After His Immigration Hearing Was Adjourned

The City of New York took action in support of Derlis Snaider — a New York City resident and current 11^th grade student at Grover Cleveland High School in Ridgewood, Queens who was arrested in a Manhattan courthouse on June 4, 2025, after attending a mandatory, routine immigration hearing — by filing an amicus brief in the case of  Derlis Snaider vs. William P. JOYCE, in his official capacity as Acting Field Office Director of New York, Immigration and Customs Enforcement; Caleb VITELLO, Acting Director, U.S. Immigration and Customs Enforcement; Kristi NOEM, in her official capacity as Secretary of the United States Department of Homeland Security; Pamela BONDI, Attorney General, U.S. Department of Justice.

Derlis Snaider is a 19-year-old citizen of Ecuador who has no criminal history in New York City. He and his family sought asylum in the United States as a result of the discrimination they faced for being indigenous members of the Panzaleo tribe in Ecuador.

 

“Every day, our administration is working to make New York City safer and the best place to raise a family, but we know that when immigrant communities are not able to use city services, it makes us all less safe,” said Mayor Adams. “Once again, we are taking legal action in support of another young, New York City student, who was doing what he was supposed to do in attending a mandatory, routine immigration hearing.”

  

“Once again, as outlined in our brief, creating a culture of fear around court appearances deters people from participating in judicial proceedings — and not just immigration proceedings, but all manner of court proceedings that depend on cooperation from members of the public, whatever their legal status may be,” said New York City Corporation Counsel Muriel Goode-Trufant. “These tactics undermine the public trust and violate the principles of fairness and justice. We urge the court to grant Derlis’ writ of habeas corpus.”  

  

The brief — filed in the U.S. District Court for the Southern District of New York — argues the city is less safe when immigrants are afraid of accessing basic services and attending immigration court hearings. The filing also outlines the important contributions that immigrants have long made to New York City, specifically on its cultural fabric, economic growth, and overall prosperity. 

  

The amicus brief lays out the immigrant community’s — including those who are undocumented — vast contributions to the City of New York. The five boroughs is home to more than 3 million immigrants, comprising nearly 40 percent of the city’s population. Derlis Snaider showed up for his mandatory hearing and then was arrested in the immigration courthouse just outside the courtroom at 26 Federal Plaza in Manhattan, a stone’s throw away from a federal district court; state criminal and civil courts; local criminal, housing, and family courts; and other courthouses. As the brief makes clear, these tactics risk driving underground those otherwise inclined to follow the country’s immigration laws, undermining the very system that those laws are designed to serve. 

                                                                             

Further, in the brief, the city argues that the judicial system itself will suffer if residents fear that simply appearing in court to protect their rights or the rights of others could expose them to detention and removal.

This action follows two similar, amicus briefs the City of New York filed in support of Dylan Lopez Contreras and Jose Luis, two other New York City Public School students who were arrested in Manhattan courthouses after attending a mandatory, routine immigration hearings.

Stantec Inc. Agrees to Pay $4M to Resolve Allegations That It Violated the False Claims Act by Submitting False Certifications to the EPA in Grant Applications

 

Stantec Inc. (Stantec) a provider of environmental development and engineering services, with its primary headquarters in Alberta, Canada, along with Cardno Consulting LLC (Cardno), a separate company that Stantec acquired in 2021, have agreed to pay $4 million to resolve allegations that they violated the False Claims Act by submitting or causing the submission of applications to the Environmental Protection Agency (EPA) for Brownfields Assessment Grants that falsely certified compliance with federal procurement regulations.

“Applicants for federal grant funds must comply with applicable procurement requirements” said Assistant Attorney General Brett A. Shumate, head of the Justice Department's Civil Division. “The department will hold accountable those who undermine the integrity of the federal grant process by falsely certifying compliance with regulations that are designed to prevent unfair competitive advantage.”

“The EPA’s Brownfields Grant Program aims to help communities around the country transform contaminated sites into community assets,” said Acting EPA Inspector General Nicole Murley. “Fair competition is critical to the integrity of this program, and the EPA Office of Inspector General will vigorously pursue allegations of false certifications to protect both the program and the taxpayer dollars that fund it.”

The EPA Brownfields Grant Program provides grants and technical assistance to cities, towns, and other municipalities to assess, safely clean up, and sustainably reuse contaminated properties. The settlement relates to Assessment Grants the EPA awarded from 2014 to 2022. Applicants for EPA Brownfields grants must certify compliance with a requirement that “contractors that develop or draft specifications, requirements, statements of work, or invitations for bids must be excluded from competing on those procurements.”

The United States alleged that, from 2014-2022, Stantec, through its subsidiary Stantec Consulting Services Inc., and Cardno drafted or assisted in the drafting of the requests for proposals and statements of work associated with applications for EPA Brownfields Assessment Grants, and then competed for and won the work for which they had drafted the specifications. The United States alleged that this conduct violated the above requirement and that Stantec and Cardno falsely certified, or caused the communities applying for the grants to certify, that they had complied with it.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the EPA’s Office of Inspector General.

The matter was investigated by Trial Attorney Robin Overby of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Special Agent Brian Scriver of the EPA’s Office of Inspector General.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

DEC Launches "Snapshot NY," New Citizen Science Wildlife Monitoring Program

 

Volunteers Encouraged to Participate in Monitoring Wildlife Populations

New York State Department of Environmental Conservation (DEC) Commissioner Amanda Lefton, in collaboration with the New York Cooperative Fish and Wildlife Research Unit at Cornell University, announced the launch of Snapshot NY, a citizen science program that allows the public to participate in wildlife monitoring through the deployment of trail cameras. The project will help improve the way DEC monitors and manages more than a dozen wildlife species.  

“More than 60 percent of land in New York is privately owned, and this new collaborative effort will help DEC biologists collect critical information about wildlife in areas where our experts have historically lacked access,” DEC Commissioner Lefton said. “As an added bonus, Snapshot NY is a fantastic opportunity to get outside, connect with the outdoors, and directly contribute to wildlife conservation efforts in New York State.” 

Angela Fuller, Leader of the United States Geological Survey New York Cooperative Fish and Wildlife Research Unit and Professor at Cornell University said, “Snapshot NY represents an unprecedented opportunity to generate large-scale, long-term data on wildlife populations across New York. This collaboration exemplifies how partnerships among agencies, scientists, and the public can advance wildlife conservation and management in meaningful and measurable ways,”

The high-quality data collected through Snapshot NY will help DEC continue to make informed decisions, improve the effectiveness of wildlife conservation and management strategies, and track changes in wildlife populations over time.  

How to Participate 

To become a volunteer for Snapshot NY: 

• Access to land: Volunteers are encouraged to place trail cameras on private property across New York State. For the project, the state has been divided into ~4,500 grid cells, with a goal to get a camera in as many cells as possible. Those without access will need permission to set up a camera on nearby public land.  

• A trail camera: Use your own trail camera (preferred) or apply to borrow a trail camera through the Snapshot program. Trail cameras detect heat signatures and motion and snap photos of passing animals. 

• Access to internet and a willingness to upload photos: Volunteers download the Snapshot NY app and periodically upload images (about once every two weeks) to the Snapshot NY website, including GPS coordinates, time, and date to contribute to the statewide dataset. 

• No prior experience required: Whether you are someone who loves nature or a hunter scouting for the upcoming season, the program is open to all. It’s a great way to glimpse the hidden lives of New York wildlife. 

• Create an account: Volunteers can create an account on http://www.snapshotny.org and select one of the survey blocks to deploy a trail camera. If your chosen block is already reserved, DEC strongly encourages participants to consider selecting a block on nearby available public lands or to sign up for the waitlist for the preferred block.  

For information about Snapshot NY, visit the Snapshot NY website.

Governor Hochul, Mayor Adams and NYCHA Announce Completion of Elevator, Heating and Facade Improvements Serving Nearly 39,000 NYCHA Residents Made Possible by $1.2 Billion in State Funding

Additional Capital Investments Currently Under Construction, in Design or Procurement Will Bring Improvements to a Total of 75 Developments, Benefitting 122,996 Residents

Under Governor Hochul’s Leadership, Total State Capital Funding Provided to NYCHA for Critical Capital Upgrades Reaches $1.6 Billion Since 2019

Governor Kathy Hochul, New York City Mayor Eric Adams and New York City Housing Authority (NYCHA) CEO Lisa Bova-Hiatt today announced the completion of 125 elevator replacements, 17 heating system upgrades, and 36 building facade renovations, benefitting 38,974 NYCHA residents at 24 developments across the five boroughs, made possible by $1.2 billion in funding that has been provided by the State of New York through the Dormitory Authority of the State of New York (DASNY). Additionally, State capital funding is also supporting an additional 126 elevator replacements, 105 heating systems upgrades, and 29 building facade renovations all currently under construction, and an additional 172 elevator replacements and 59 building facade renovations in design and procurement. In total, these capital investments are expected to benefit nearly 123,000 residents across 75 developments. As part of the FY25 and FY26 budgets, Governor Hochul allocated an additional $365 million to NYCHA, bringing the total state capital funding allocation to $1.6 billion since 2019.

“With this important milestone, NYCHA has completed major building improvements, leveraging $1.2 billion in state investment to improve the homes and lives of tens of thousands of NYCHA residents,” Governor Hochul said. “NYCHA residents deserve access to a safe, affordable, and quality place to live — and these improvements are critical to making that reality. I am proud to partner with NYCHA, its residents, and local and state officials to support NYCHA communities.”

New York City Mayor Eric Adams said, “We are proud to call ourselves the most pro-housing administration in New York City history and that includes public housing. From unlocking over $4.7 billion for capital repairs through the PACT program to delivering free internet to over 150,000 NYCHA households through our Big Apple Connect initiative, we are putting public housing first every day. These renovations will help tens of thousands of NYCHA residents stay safe, stay warm, and stay healthy. Thank you to the state for funding these critical upgrades and to all our NYCHA leaders for their tireless advocacy on behalf of our public housing tenants.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $1.2 billion investment of state funds has helped make significant improvements to NYCHA properties that will improve the quality of life for nearly 39,000 residents throughout the five boroughs. This investment reflects Governor Hochul’s continued commitment to ensure NYCHA residents have a safe and affordable place to call home.”

Nearly 39,000 residents will benefit from 125 elevator replacements, 17 heating system upgrades, and 36 building facade renovations at 24 developments. Since Governor Hochul has taken office, NYCHA has received a total capital funding allocation of $1.2 billion from the State through three funding agreements: $450 million for boiler and elevator upgrades in November 2021; $300 million for additional elevator upgrades in April 2022; and $485 million for facade restoration and additional heating system upgrades in December 2023.

As part of the FY25 and FY26 budgets, Governor Hochul secured $140 million to fund additional facade and heating system upgrades and $225 million to fund additional capital improvements, including $25 million for vacant NYCHA units and $200 million other capital work, providing vital support to this essential housing stock and critical quality of life improvements for the residents who call it home. This builds on the Governor’s ongoing commitment to public and subsidized housing, including her dedication of $391 million in additional state Emergency Rental Assistance Program (ERAP) and other funding in her FY24 budget to help ensure public housing residents who fell behind on their rent due to the COVID-19 pandemic received payments. An estimated 58,000 households have been assisted as a result to date. In June 2022, Governor Hochul previously signed legislation creating the New York Public Housing Preservation Trust, aimed at addressing overdue repairs, rehabilitation, and modernization of up to 25,000 NYCHA apartments. 

Attorney General James Urges Court to Halt Unconstitutional ICE Raids in Los Angeles

Multistate Coalition Files Brief Arguing Mass Deportation Tactics Harm Communities, Undermine Public Safety, and Erode Civil Liberties

New York Attorney General Letitia James today joined a coalition of 17 other attorneys general in supporting the American Civil Liberties Union’s (ACLU) lawsuit challenging the federal government’s use of unlawful immigration enforcement tactics in Los Angeles, California. In an amicus brief filed today in Perdomo v. Noem, Attorney General James and the coalition urge the court to grant a temporary restraining order halting the raids, which have upended the community, harmed local economies, and undermined public trust in law enforcement.

“In Los Angeles and nationwide, we are seeing immigration enforcement officers deploy dystopian tactics that are deeply harmful,” said Attorney General James. “No one should fear being questioned, detained, or deported by unidentified masked agents while taking their child to school, going to work, or attending church. These mass raids are tearing families apart, threatening public safety, and turning once-lively neighborhoods into ghost towns. Federal agents are sowing fear in entire communities, which is why we are urging the court to intervene and stop these unconstitutional raids at once.”

In the brief, Attorney General James and the coalition detail how the federal government’s current immigration enforcement efforts have “shattered the rhythms of everyday life” in Los Angeles. In recent months, masked agents conducting unannounced and unmarked operations in neighborhoods, churches, schools, and local businesses have left people afraid to leave their homes. Residents, including U.S. citizens, have been unlawfully detained, questioned, and harassed, often without any reasonable suspicion of wrongdoing. Local businesses have closed and farmers markets have shut down due to fear of enforcement. Hospitals and health clinics report soaring appointment cancellation rates, which presents alarming concerns for public health. Students are skipping school and graduation ceremonies, days that are supposed to be among the most joyous of their lives. Houses of worship have also seen a dramatic decline in attendance.

The attorneys general highlight the long history of discriminatory and militarized immigration enforcement campaigns in California, including “Operation Wetback,” a 1954 mass deportation campaign that took its name from an ethnic slur, as well as the La Placita raids during the Great Depression. The attorneys general note that at the time, Mexican farmworkers were indiscriminately blamed for job shortages and shrinking public benefits, and ultimately, the campaign resulted in the deportation of nearly two million Mexican Americans, more than half of whom were U.S. citizens, without due process. Families were separated, and many children never again saw their parents. Historians and scholars have widely condemned these discriminatory raids as inhumane terror campaigns.

Attorney General James and the coalition draw parallels between those shameful chapters of American history and the current actions under the Trump administration, which seemingly prioritize maximizing the quantity of arrests over the right to due process. They highlight the president’s past remarks, in which he praised “Operation Wetback” as an enforcement model and hailed the Eisenhower administration for setting the record for deportations, a record he said his administration would break. The attorneys general emphasize that the administration’s recent immigration raids, including in Los Angeles, appear to bear many of the same hallmarks as the earlier mass deportation efforts that are now shameful chapters of American history.

The attorneys general argue that the federal government’s conduct creates confusion and fear that also directly impedes local law enforcement. Numerous incidents have been reported in which plainclothes Immigration and Customs Enforcement (ICE) agents driving unmarked vehicles were mistaken for criminals, leading to false reports of kidnappings and assaults. This, too, erodes the culture of trust between immigrant communities and the police. ICE’s secretive approach has even led to a rise in copycat crimes in which masked perpetrators imitate ICE agents in order to abduct or harass others.

In their filing, Attorney General James and the coalition emphasize that while the ACLU’s lawsuit is specifically focused on ICE enforcement tactics in Los Angeles, the federal government has been engaging in widespread raids in cities throughout the country, including New York. Arrests at immigration courts in Manhattan and on farms upstate have contributed to a culture of fear for many immigrant New Yorkers. The attorneys general are asking the court to immediately intervene and stop the unlawful immigration enforcement tactics in Los Angeles, arguing that the culture of fear that these raids have created permeates well beyond city and state borders and has had an overwhelming chilling effect on communities nationwide.

The attorneys general are supporting the plaintiffs' motion for a temporary restraining order, in which they argue ICE is not stopping people based on any reasonable, individualized suspicion, and instead is engaging in racial profiling. 

Joining Attorney General James in filing this brief are the attorneys general of Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Maine, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New Mexico, Nevada, Oregon, Vermont, and Washington. 

Azumi Limited Restaurants Agree to Pay $3.6M to Resolve False Claims Act Allegations Relating to Paycheck Protection Program Loans

 

Azumi LLC; Zuma NYC LLC; Zuma Las Vegas LLC; Zuma Japanese Restaurant Miami LLC; Inko Nito Garey St. LLC; and Beach Chu Hallandale LLC (collectively, the “Azumi Entities”) have agreed to pay $3,602,423 to resolve allegations that they violated the False Claims Act by obtaining Paycheck Protection Program (PPP) loans for which they were not eligible.

“PPP loans were intended to assist eligible small businesses during the pandemic,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “When ineligible businesses improperly obtained loans, they harmed both the taxpayers who funded the program and the eligible businesses who were denied relief.”

“The Paycheck Protection Program limits were put in place to prevent large corporate groups from obtaining a disproportionate share of the limited funds that were available to assist small businesses struggling during COVID,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “Our office is committed to holding accountable those who misappropriated taxpayer-funded relief program limits.”

The PPP, an emergency loan program established by Congress in March 2020 and administered by the U.S. Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses. In January 2021, SBA announced that certain parties that had previously received PPP loans were eligible to apply for a second loan, typically referred to as a second-draw PPP loan.   

When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications and agree that they would comply with all PPP rules. Among other things, PPP rules limited the total amount of funding a single “corporate group” could receive in connection with both first-draw and second-draw loans.

The Azumi Entities are limited liability companies, each of which operates a restaurant in the United States and each of which is either fully or partially owned by Azumi Limited. As part of the settlement, the Azumi Entities admitted that they collectively received and were granted loan forgiveness for second-draw loans in a total amount that exceeded the applicable corporate group limit for second-draw loans.  

The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. GNGH2 Inc. v. Azumi LLC et al., No. 22-cv-11822 (D. Mass.). As part of today’s resolution, GNGH2 Inc. will receive approximately $360,000.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.

This matter was handled by Fraud Section Trial Attorney Kimya Saied and Senior Trial Counsel Benjamin Wei, and Assistant U.S. Attorney Julien M. Mundele for the District of Massachusetts.

Except for the facts admitted by the Azumi Entities, the claims in the complaint are allegations only, and there has been no determination of liability.