Mass. company pays $1.4M for ineligible pandemic loan claims

A company in Ayer agreed to pay $1.4 million to resolve claims that it improperly obtained pandemic paycheck relief money, according to federal prosecutors.

Ajinomoto Cambrooke Inc., or Cambrooke, applied for money from the Paycheck Protection Program and certified that it met the size standards for companies to receive money from the program, U.S. Attorney Leah Foley's office said Wednesday.

However, Cambrooke, together with its Japan-based parent company, exceeded the size limits for the program, the company admitted in a settlement with the Justice Department, according to Foley, the U.S. Attorney for the District of Massachusetts.

The company had not followed guidance from the U.S. Small Business Administration that said applicants must count all their employees — including employees of American and foreign affiliates — when determining their eligibility for the program.

Cambrooke ultimately received full forgiveness of the loan from the SBA, Foley's office said.

Prosecutors said the company had cooperated with its investigation.

The latest from MassLive

• Winter storm warning in place for Berkshire County until Saturday afternoon – potentially 8 inches of snow

• Former reality star spends first Christmas with family in nearly a decade

• Mass. weather: Up to 7 inches of snow may fall in parts of state Friday

• Mass. weather: What time will it start snowing on Friday?

• 'Big Brother' star dies after hospitalized for 'series of cardiac arrests'

Read the original article on MassLive . Add MassLive as a Preferred Source by clicking here .