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Home health company and owner pay $1.2 million to settle New Hampshire COVID loan fraud claims

Federal prosecutors said Jean-Paul Karangwa and Caring Bees Healthcare Inc. used pandemic relief loan money for personal investments. The settlement includes no admission of liability.

A home healthcare company and its owner have paid $1.2 million to resolve allegations that they misused federal pandemic relief loans, the U.S. Attorney's Office for the District of New Hampshire announced.

Prosecutors said Jean-Paul Karangwa and Caring Bees Healthcare, Inc. violated the False Claims Act in connection with an Economic Injury Disaster Loan and a Paycheck Protection Program loan, both administered by the U.S. Small Business Administration.

According to the U.S. Attorney's Office, the government contends that Karangwa and Caring Bees misrepresented their plan to use $200,000 in EIDL funds and $400,000 in PPP funds for authorized business expenses and to alleviate economic injury. Instead, prosecutors said, Karangwa used the money for personal investments, including in commercial real estate and in a start-up online retailer. Prosecutors said he applied for and was granted forgiveness of the PPP loan despite the alleged misuse.

Congress created the two programs to provide emergency assistance to businesses affected by the COVID-19 pandemic. Under the PPP, eligible businesses could receive forgivable, SBA-guaranteed loans, while the EIDL program offered low-interest SBA loans. Funds under both programs were to be used only for legitimate business expenses such as payroll, rent and utilities, and not for personal purposes, the office said.

The allegations are civil claims that have not been proven in court, and the settlement includes no admission of liability.

U.S. Attorney Erin Creegan said the loans were intended to aid Americans and small businesses amid the pandemic's economic fallout, and that her office remains committed to recovering unlawfully obtained taxpayer money.

The Federal Bureau of Investigation investigated the case, which was handled by the U.S. Attorney's Office civil division.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

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