Fresno County farmer pays $600k fine to settle pandemic fraud claims against businesses

A Fresno County farmer has agreed to pay $600,000 in damages and penalties to settle fraud claims against four of his businesses.

John Seasholtz allegedly used his companies Mendota Land Co., Sweetwood Farm Co. LLC, Sweetwood Farm Inc., Seasholtz Co. LLC and “improperly inflated the employee headcount on PPP loan applications,” according to a news release from the Department of Justice on Monday.

Allegedly, those applications to the federal Paycheck Protection Program included losses for non-employee contract workers who were actually employed elsewhere. According to the Department of Justice, Seasholtz receive nearly $1.8 million in excess PPP funds, which were designed as emergency support for financial hardships suffered because of the COVID-19 pandemic.

Seasholtz has repaid the excess PPP loan funds, according to the Justice Department.

“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.

The department “is committed to pursuing those who knowingly obtained PPP or other COVID‑19 assistance funds to which they were not entitled,” he said.

The settlement was part of a lawsuit filed under whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States, while sharing in a portion of the government’s recovery. This suit was filed by Bell Hill LLC, though the statement said it has not yet been determined how much of the recovery will be paid out.

This story was originally published January 9, 2023 at 2:20 PM.