Securiport and Alex Stewart International PPP False Claims Act settlement (2026)
- Resolution type
- Civil settlement of False Claims Act allegations 1
- Date announced
- 21 October 2026 1
- Agencies
- U.S. Attorney's Office for the Eastern District of Virginia and the U.S. Small Business Administration 1
- Parties
- Securiport Limited Liability Company and Alex Stewart International, LLC 1
- Total amount
- US$1,816,943 combined. The release gives no split between the two companies 1
- Admission
- None. "The civil claims settled are allegations only" and "there has been no determination of civil liability" 1
- Case
- United States ex rel. Verity Investigations, LLC v. Securiport Limited Liability Company, No. 1:25-cv-2027 1
- Whistleblower share
- 10% of the government's recovery, received by Verity Investigations, LLC 1
What the settlement covers
Securiport Limited Liability Company and Alex Stewart International, LLC agreed to pay a combined US$1,816,943 1. The payment resolves civil allegations under the False Claims Act tied to the companies' applications for Second Draw Paycheck Protection Program (PPP) loans 1.
The U.S. Attorney's Office for the Eastern District of Virginia announced the settlement in a release datelined Alexandria, Virginia, on 21 October 2026 1. The release describes the resolution as "the result of a coordinated effort" between that office and the U.S. Small Business Administration 1. Assistant U.S. Attorney David Tannenbaum investigated the matter, according to the release 1.
The release gives one combined figure. It does not say how much each company pays 1. It does not give the loan amounts or the dates the loans were made 1.
What the government alleged
The government alleged that the two companies, together with affiliates, falsely stated on their Second Draw PPP applications that they had no more than 300 employees 1. Employee headcount was an eligibility test for this type of loan, according to the release 1.
The Small Business Administration lists "no more than 300 employees" as one of the eligibility requirements for a Second Draw PPP loan 3. The SBA page lists two other requirements. The borrower must have received a First Draw PPP loan and used it only for authorized uses, and it must show at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 3.
The release says the loans were "later forgiven" 1. The government alleged the companies falsely certified their eligibility for the loans 1.
Did the companies admit liability?
No. The release states that the civil claims settled "are allegations only" and that "there has been no determination of civil liability" 1. A settlement of this kind is not a finding by a court or a jury that the companies broke the law 1.
The release does not include a statement from either company 1. No company statement is quoted on this page for that reason.
The legal basis
The settlement resolves claims under the False Claims Act 1. The Act makes a person liable who "knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval" 2. It covers a person who "knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim" 2.
A person found liable under the Act owes a civil penalty per claim, adjusted for inflation, "plus 3 times the amount of damages which the Government sustains" 2. These are the maximum exposures under the statute. The settlement amount was agreed between the parties and no court made a finding of damages 1,2.
The whistleblower case
The case was filed under the whistleblower provision of the False Claims Act 1. Its caption is United States ex rel. Verity Investigations, LLC v. Securiport Limited Liability Company, No. 1:25-cv-2027 1. The release says court records are available on PACER 1.
The whistleblower, Verity Investigations, LLC, received 10% of the government's recovery, according to the release 1. The release does not state a dollar figure for that share 1.
Common questions
How much did Securiport and Alex Stewart International agree to pay?
A combined US$1,816,943, according to the U.S. Attorney's Office for the Eastern District of Virginia 1.
Was this a criminal case?
No. It is a civil settlement of False Claims Act allegations 1. The release says there has been no determination of civil liability 1.
What was the alleged false statement?
The government alleged the companies and their affiliates falsely stated on Second Draw PPP applications that they had no more than 300 employees 1. The 300-employee limit is an SBA eligibility rule for Second Draw loans 3.
Who brought the case?
Verity Investigations, LLC filed it as a whistleblower under the False Claims Act and received 10% of the recovery 1.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email hello@settlementsexplained.org with the official link.
Sources
- U.S. Attorney's Office, Eastern District of Virginia: Affiliates settle Paycheck Protection Program false claims (21 October 2026)
- Legal Information Institute: 31 U.S. Code 3729, False claims (statute text)
- U.S. Small Business Administration: Second Draw PPP loans (undated program page)
Related
- False Claims Act settlements explained
How the U.S. False Claims Act works, treble damages, qui tam whistleblower suits, relator shares, and what a DOJ FCA settlement says about liability.
- What a government settlement means
What civil settlements, DPAs, NPAs, plea agreements and SEC orders say about admission of liability or guilt, with the rules that govern each.
- How to find a Justice Department settlement
Where to find official DOJ press releases, resolution agreements, court filings on PACER and SEC litigation releases, and what to check in each.