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March 12 (UPI) -- The Justice Department said Wednesday an incarcerated Florida businessman and 10 companies he owned or operated will pay $20.074.458.20 for violating the False Claims Act to obtain fraudulent pandemic relief loans. It is a civil settlement that comes after Patrick Walsh pleaded guilty to one count of wire fraud and one count of money laundering over the fraudulent loans in January 2023.
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"Today's civil resolution and the previously imposed 66-month period of incarceration should serve as a significant deterrent to others like the defendant who would attempt to steal millions of dollars from the American people and exploit federal relief programs," said Acting United States Attorney Michelle Spaven for the Northern District of Florida in a statement.
In the civil settlement, Walsh admits submitting fraudulent loan applications during the pandemic.
Walsh is serving a 66-month sentence in federal prison and was also ordered to forfeit $7.8 million.
The DOJ said Walsh received approximately $7.8 million in fraudulent loans.
The DOJ said he illegally used that money to buy a private island, to invest in Texas oil interests and to pay off personal debts.
The loans in question were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program.
Congress passed the PPP to keep the economy from tanking during the COVID-19 pandemic by giving emergency loans to small business to keep people on their payrolls.
Congress expanded the EIDL program during the pandemic.
Walsh and the companies he owned or operated agreed to pay the civil penalty of $20,074,458.70.
The DOJ said the companies for which Walsh got fraudulent loans include American Blimp Company LLC; Walsh Family Land Corp.; Airsign Inc.; Airsign Airship Group LLC; Airsign Group LLC; Airsign Airships Latin America LLC; Airsign Airships Asia Pacific LLC; Airsign Airships Repair Station LLC; Aero Capital LLC; and Eagle Ridge Management Group LLC doing business as Shiloh Oil Company.
