Camden County Furniture Company Settles Federal Allegations Over Improper PPP Loan

Pennsauken-based American Furniture Rentals agrees to pay nearly $2.9 million to resolve claims it received pandemic relief funds in violation of eligibility rules.

A Pennsauken furniture rental company has agreed to pay nearly $2.9 million to the federal government to settle allegations that it improperly received and retained a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic, according to an announcement by U.S. Attorney John Giordano.

American Furniture Rentals, Inc. (AFR) was accused of violating the False Claims Act by certifying eligibility for a $2 million PPP loan in January 2021, despite allegedly employing more than the 300-employee threshold set by federal rules at that time. The PPP, part of the CARES Act passed in 2020, was intended to assist small businesses in maintaining their workforce during the public health crisis. Eligibility restrictions were designed to prioritize aid to businesses below certain size limits.

According to the U.S. Attorney’s Office, AFR certified its eligibility under the program, received the loan, and subsequently obtained full forgiveness of the principal and accrued interest. The settlement comes as a resolution to a civil lawsuit brought under the False Claims Act’s whistleblower provision, which allows private individuals or entities to file on behalf of the federal government and potentially share in any recovery.

AFR fully cooperated with the investigation, according to the Department of Justice, and will pay a total of $2,907,703 to settle the matter.

The case, United States ex rel. Verity Investigations, LLC v. American Furniture Rentals, Inc., was filed in the District of New Jersey under docket number 24-7540. It was handled by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.

The Department of Justice continues to investigate and pursue alleged fraud tied to pandemic relief programs. Individuals with information about suspected fraud related to COVID-19 relief funding are encouraged to contact the National Center for Disaster Fraud via hotline at 866-720-5721 or through its online complaint form at justice.gov/disaster-fraud.