IFH Holdings Group, Inc., which operates as IGNITE Fitness Holdings and was formerly known as ECP-PF Holdings Group, Inc., has paid over $2 million to resolve allegations related to its receipt of a Paycheck Protection Program (PPP) loan. The company, which owns and runs more than 130 Planet Fitness locations in the U.S. and Canada, is based in Milford, Connecticut.
The PPP was established by Congress in March 2020 through the CARES Act to help small businesses cover payroll and other expenses during the COVID-19 pandemic. The program required applicants to certify their eligibility and accuracy of information provided.
A second round of PPP loans became available in January 2021 with additional requirements. One key rule for this “second-draw” loan was that applicants could have no more than 300 employees unless they qualified for specific exceptions. Applicants were required to certify compliance with this limit.
In February 2021, IGNITE applied for a second-draw PPP loan worth $2 million, claiming eligibility under a “per-location” exception to the employee count rule. However, according to government allegations, this exception did not apply to IGNITE because it had more than 300 employees overall and did not qualify for any exceptions. After receiving the loan, IGNITE obtained forgiveness for the full amount—$2,007,726.03 including interest.
“This matter was handled by Assistant U.S. Attorney Sara Kaczmarek, with assistance from SBA’s Office of General Counsel,” according to the press release.
Individuals who have information about possible fraud involving COVID-19 relief funds are encouraged to report it via the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through its online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
