U.S. Department of Justice False Claims Act Update

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United States Obtains False Claims Act Judgment Against California Rehabilitation Center and Owner Relating to Improper Paycheck Protection Program Loan

01/26/2026 07:00 AM EST

The United States District Court for the Central District of California granted summary judgment to the United States against JMG Investments Inc., a California corporation which runs a rehabilitation center, and its owner, Jeffrey Schwartz, on Jan. 15, finding that they violated the False Claims Act when they knowingly received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules. The District Court ordered Schwartz and his company to pay the United States a total of $1,565,294.38 in damages and penalties.

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