Hillbilly’s BBQ Owner Pays $1.5 Million to Settle Federal Pandemic Loan Fraud Lawsuit

Well, the legal smoke is clearing for a popular North Carolina barbecue chain. Hillbilly’s BBQ owner Adam Shannon has reached a deal with the federal government, agreeing to pay $1.5 million to settle a major lawsuit.

The case accused Shannon of misusing critical funds designed to help businesses stay afloat during the COVID-19 pandemic. While this settlement closes this legal chapter, the restaurants themselves are still open, serving up their usual fare.

Key Takeaways: The Hillbilly’s BBQ Settlement at a Glance

Let’s break down the essential facts of this case quickly.

• Who: Adam Shannon, the owner of Hillbilly’s BBQ locations in Bessemer City and Stanley, N.C.

• What: A substantial $1.5 million civil settlement has been reached with the U.S. Department of Justice.

• Why: The resolution addresses claims that Shannon submitted false information on applications for federal pandemic relief loans.

• What’s Next: The civil matter is resolved. The widely asked question, “Is Hillbilly’s BBQ closed?” is answered with a no; the spots are still slinging barbecue.

Breakdown of the DOJ’s Allegations and Lawsuit

So, what exactly was Hillbilly’s BBQ owner accused of? The heart of the federal lawsuit gets into the specifics of the Paycheck Protection Program (PPP).

According to court documents, Adam Shannon allegedly falsified payroll reports. By inflating these numbers on his PPP and EIDL loan applications, he secured more money than his businesses were eligible to receive. These funds, intended to keep employees on the payroll during lockdowns, were then allegedly misused.

This type of PPP loan fraud became a significant focus for federal investigators as they worked to track down widespread misuse of pandemic funds.

The Terms of the $1.5 Million Settlement Agreement

A settlement is essentially an agreement to resolve a dispute without a full trial. In this case, the DOJ settlement requires Adam Shannon and his associated businesses to pay a total of $1.5 million.

It’s important to understand that a civil settlement like this is not an admission of guilt. It is a way to resolve allegations and avoid the cost and uncertainty of prolonged litigation. The payment will be made to the federal government.

Statements from the U.S. Department of Justice

The U.S. Attorney’s Office for the Western District of North Carolina was clear about the message this sends. U.S. Attorney Dena J. King stated that this Justice Department settlement demonstrates a firm commitment to holding people accountable.

“This settlement demonstrates our commitment to pursuing those who exploited the pandemic for personal gain,” King said in an official press release. Her statement underscores the government’s continued effort to clamp down on COVID-19 relief fraud and protect taxpayer money.

What This Means for Hillbilly’s BBQ and Owner Adam Shannon

For customers wondering if they can still get their pulled pork fix, the answer is yes. The Hillbilly’s BBQ settlement is a financial agreement with the owner, not a mandate to close the restaurants. The locations in Bessemer City and Stanley are expected to continue operating as usual.

However, it’s crucial to distinguish between civil and criminal cases. This $1.5 million agreement resolves the civil federal lawsuit. It does not automatically prevent future criminal charges from being filed based on the same evidence. Whether the U.S. Attorney’s Office pursues that path remains to be seen.

FAQs: Hillbilly’s BBQ PPP Loan Settlement

We know you have questions. Here are quick answers to the most common ones.

What is PPP loan fraud?

It involves knowingly providing false information to receive loans from the Paycheck Protection Program, or using the loan proceeds for unauthorized purposes.

How much PPP money did Hillbilly’s BBQ receive?

While the exact total received from both PPP and EIDL programs wasn’t always disclosed in reports, the DOJ settlement of $1.5 million gives a clear indicator of the scale of the alleged misconduct.

What is the False Claims Act?

It’s a federal law that allows the government to sue people and companies that defraud governmental programs. It was the primary legal tool used in this federal lawsuit.

Can I still eat at Hillbilly’s BBQ?

Yes. As of now, both Hillbilly’s BBQ locations remain open and operating. This settlement is a matter between the owner and the federal government.

You May Also Like: The Trump CPB Board Removals Lawsuit and Kraft Heinz Class Action Lawsuit