ID Logistics settles claim of Covid loan fraud for $2.6M

The U. S. subsidiary of France-based contract logistics provider ID Logistics Group SA has agreed to pay $2. 36 million to resolve allegations that it improperly obtained a Paycheck Protection Program loan from the U. S. Small Business Administration during the Covid crisis for which it was not eligible.

ID Logistics US submitted an application for a PPP loan certifying that, together with its affiliates, it had fewer than 500 employees when it actually had more than 500 employees and, therefore, was not eligible for the loan, the U. S. Attorney’s Office for the Middle District of Pennsylvania, announced on Tuesday.

The Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020 provided forgivable loans to small businesses for job retention and other expenses through the Paycheck Protection Program. PPP loans were guaranteed by the SBA and, if the loan proceeds were used for eligible expenses, the SBA would forgive the loan balance and accrued interest.

To obtain a PPP loan, a qualifying business had to submit a PPP loan application to an authorized lender. Whether an applicant qualified as a small business was determined, in part, by assessing the number of employees of the business, including any domestic and foreign affiliates. window. googletag = window. googletag || {cmd: []}; googletag. cmd.

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enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); The fraudulent loan application was flagged for authorities by a whistleblower, who will receive $236,200 from the settlement, according to the Department of Justice.

“The SBA is committed to rooting out every dollar of PPP fraud,” said General Counsel Wendell Davis, and “will aggressively pursue bad actors to hold them accountable and recover pandemic relief funds improperly obtained from the program.” (Why It Matters: ID Logistics cooperated with the investigation, but the case is a black eye for the company.)

While less known in the United States, ID Logistics is a warehouse-based third-party logistics provider that operates 107 million square feet of distribution space across 450 sites worldwide in 20 countries, with about 55,000 employees. The company recently expanded to Australia. In 2025, it had revenue of $4. 43 billion.

During the first half this year it posted revenue of $2. 4 billion, up more than 18% year over year. The company pointed to strong performance in North America, where business grew 46% at constant exchange rates. SC Johnson, the maker of skin care, cleaning and hygiene products, opened a second facility near Chicago during the second quarter.

ID Logistics manages the facility and co–packing operations with nearly 200 employees. In 2022, ID Logistics acquired Scranton, Pennsylvania-based Kane Logistics, and its 20 packaging and product distribution hubs. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. window. googletag = window. googletag || {cmd: []}; googletag. cmd.

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enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); Write to Eric Kulisch at ekulisch@freightwaves. com. RELATED STORIES: Ex Williams-Sonoma exec pleads guilty to $16M warehouse kickback scheme The post ID Logistics settles claim of Covid loan fraud for $2. 6M appeared first on FreightWaves.