MILWAUKEE, Dec. 16, 2025 — Three U.S.-based companies owned by a Chinese multinational have agreed to pay more than $7.3 million to settle federal allegations that they improperly obtained Paycheck Protection Program (PPP) loans during the COVID-19 pandemic, the Justice Department announced Tuesday.
Greenland LA Metropolis Hotel Development LLC, Greenland US Management LLC, and Greenland LA Metropolis Development III — collectively known as the Greenland USA Entities — agreed to pay $7,312,283.36 to resolve claims brought under the False Claims Act. Federal prosecutors alleged the companies submitted false information to qualify for PPP loans for which they were not eligible.
The PPP was created by Congress in March 2020 to provide emergency financial relief to small American businesses affected by the pandemic. The loans, backed by the Small Business Administration (SBA), were forgivable if recipients met certain requirements, including limits on employee headcount when considering affiliated companies.
According to the government, the Greenland USA Entities are part of a large multinational real estate group ultimately owned by Greenland Holding Group Company Limited, a Chinese corporation with tens of thousands of employees worldwide. Prosecutors alleged that, when accounting for their affiliated entities in the United States and abroad, the companies exceeded the SBA’s size standards for their industry and therefore were ineligible for both first- and second-round PPP loans.
The government also alleged that the companies were ineligible for second-round PPP loans because they were more than 20 percent owned by entities organized in the People’s Republic of China, a factor that disqualified them under SBA rules in effect at the time.
“Congress created the PPP to help American small businesses during the pandemic, not to fund large Chinese-owned corporations,” said Brad D. Schimel, U.S. attorney for the Eastern District of Wisconsin. He said the settlement underscores the government’s commitment to combating fraud and protecting taxpayers.
The settlement resolves claims brought under the whistleblower, or qui tam, provisions of the False Claims Act, which allow private parties to sue on behalf of the government and share in any recovery. The case stemmed from two related lawsuits filed by GNGH2 Inc. and Aidan Forsyth. Under the agreement, GNGH2 Inc. will receive $697,757.80, while Forsyth will receive $33,470.53.
The Justice Department emphasized that the settlement resolves allegations only and does not constitute a determination of liability.
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