Securiport and Alex Stewart Pay $1.8M in Fraud Settlement
The companies settled False Claims Act allegations regarding false employee headcount claims on Paycheck Protection Program loans.
Updated on Oct. 21, 2026 in Financial Crime
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Securiport Limited Liability Company and Alex Stewart International have agreed to pay $1,816,943 to resolve civil False Claims Act allegations. The government claimed the companies submitted false statements about their employee headcount to qualify for Second Draw Paycheck Protection Program loans.
Why it matters
This settlement addresses alleged misuse of federal pandemic relief funds intended for smaller businesses. It underscores the government's ongoing effort to recover taxpayer money from entities that misrepresented their size to secure forgiven loans.
The $1,816,943 settlement follows a lawsuit filed by a whistleblower in the Eastern District of Virginia, which resulted in the relator receiving 10 percent of the recovery. The companies previously received loan forgiveness on the disputed funds.
The players
Securiport Limited Liability Company
This is a private company that agreed to pay settlement funds after being accused of PPP loan eligibility violations.
Alex Stewart International
This entity was a co-defendant in the False Claims Act case regarding federal loan applications.
U.S. Attorney's Office for the Eastern District of Virginia
This federal prosecutor's office handled the legal action in Alexandria, Va., to resolve the fraud allegations.
U.S. Small Business Administration
This government agency oversees the Paycheck Protection Program and collaborated on the enforcement effort.
The details
The United States alleged the companies and their affiliates exceeded the 300-employee limit required for Second Draw PPP eligibility. The case, originating from a whistleblower filing, was managed through a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the U.S. Small Business Administration.
Timeline
The case was filed in 2025.
The settlement was announced on October 21, 2026.
Legal Context
This settlement follows the established pattern of using the False Claims Act to recover federal funds from companies that allegedly misled the government. It reflects a broader trend of federal prosecutors scrutinizing PPP loan applications for eligibility fraud.
This case demonstrates how whistleblowers play a direct role in recovering taxpayer funds from organizations that circumvent federal aid requirements. The recovery serves as a deterrent against corporate misuse of emergency relief programs designed for small businesses.
The takeaway
Entities that seek federal relief funds must strictly adhere to employee headcount thresholds to maintain eligibility. Misrepresenting these figures can lead to significant financial penalties and legal action under federal whistleblower provisions.
Further reading
For more on how authorities pursue fraud, read the Financial Crime section.
Source note: This article includes information reported by The United States Department of Justice.
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