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AI firm AMAX agrees to $2.48 million settlement over ineligible PPP loan

By
FOX 4
Crime and Public Safety
Published October 8, 2026 5:49 PM CDT
Published October 8, 2026 5:49 PM CDT
article

The Brief

    • AI data center engineering firm AMAX will pay $2.48 million to resolve allegations of improperly receiving a second-draw PPP loan.
    • Prosecutors alleged that AMAX and its related entities exceeded the size limits required to qualify for the small business relief program.
    • A corporate whistleblower brought the lawsuit under the False Claims Act and will receive $248,000 from the settlement payout.

DALLAS - Federal prosecutors announced that an artificial intelligence data center engineering firm has agreed to pay $2.48 million to resolve allegations that it improperly received a second-draw PPP loan. 

AMAX settles PPP fraud allegations for $2.48 million

What we know:

The U.S. Attorney's Office for the Northern District of Texas said AMAX applied for and received the loan in 2021. The loan was later fully forgiven.

The government alleged AMAX was not eligible for the loan because the company and related entities collectively exceeded the applicable size for the program.

The settlement resolves a whistleblower lawsuit filed under the False Claims Act in the U.S. District Court for the Northern District of Texas. The law allows private parties to sue on behalf of the government and share in any recovery.

As a result, the whistleblower in the case, Blockquote Inc., will receive $248,000 from the settlement, according to the U.S. Attorney’s Office. 

Federal prosecutors target ineligible PPP loans

Debt consolidation through a personal loan makes sense if you can qualify for a new loan at a lower rate and you have a plan to pay off what you owe.

 (iStock)

What they're saying:

"My office continues to aggressively investigate and pursue companies that received PPP funds they were not eligible for," U.S. Attorney Ryan Raybould said in a statement.

Dig deeper:

The Paycheck Protection Program (PPP) was created in March 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide emergency loans to small businesses affected by the COVID-19 pandemic.

Eligibility depends on employee-count limits, and other size standards.

The Source: Information in this article was provided by the U.S. District Court for the Northern District of Texas.

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