The U.S. subsidiary of France-based contract logistics supplier ID Logistics Group SA has agreed to pay $2.36 million to resolve allegations that it improperly obtained a Paycheck Safety Program mortgage from the U.S. Small Enterprise Administration throughout the Covid disaster for which it was not eligible.
ID Logistics US submitted an utility for a PPP mortgage certifying that, along with its associates, it had fewer than 500 staff when it truly had greater than 500 staff and, subsequently, was not eligible for the mortgage, the U.S. Lawyer’s Workplace for the Center District of Pennsylvania, introduced on Tuesday.
The Coronavirus Support, Aid and Financial Safety (CARES) Act in 2020 offered forgivable loans to small companies for job retention and different bills by the Paycheck Safety Program. PPP loans have been assured by the SBA and, if the mortgage proceeds have been used for eligible bills, the SBA would forgive the mortgage stability and accrued curiosity.
To acquire a PPP mortgage, a qualifying enterprise needed to submit a PPP mortgage utility to a certified lender. Whether or not an applicant certified as a small enterprise was decided, partly, by assessing the variety of staff of the enterprise, together with any home and international associates.
The fraudulent mortgage utility was flagged for authorities by a whistleblower, who will obtain $236,200 from the settlement, in keeping with the Division of Justice.
“The SBA is dedicated to rooting out each greenback of PPP fraud,” mentioned Basic Counsel Wendell Davis, and “will aggressively pursue dangerous actors to carry them accountable and get better pandemic aid funds improperly obtained from this system.”
(Why It Issues: ID Logistics cooperated with the investigation, however the case is a black eye for the corporate.)
Whereas much less identified in america, ID Logistics is a warehouse-based third-party logistics supplier that operates 107 million sq. toes of distribution house throughout 450 websites worldwide in 20 international locations, with about 55,000 staff. The corporate lately expanded to Australia.
In 2025, it had income of $4.43 billion. In the course of the first half this yr it posted income of $2.4 billion, up greater than 18% yr over yr. The corporate pointed to sturdy efficiency in North America, the place enterprise grew 46% at fixed trade charges. SC Johnson, the maker of skincare, cleansing and hygiene merchandise, opened a second facility close to Chicago throughout the second quarter. ID Logistics manages the ability and co–packing operations with almost 200 staff.
In 2022, ID Logistics acquired Scranton, Pennsylvania-based Kane Logistics, and its 20 packaging and product distribution hubs.
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