ID Logistics US settles PPP loan fraud claim for $2.36 million
The US subsidiary of France-based ID Logistics Group SA has agreed to pay $2.36 million to resolve allegations that it improperly obtained a pandemic relief loan by misrepresenting its employee count.
ID Logistics US, the United States arm of France-based ID Logistics Group SA, has agreed to pay $2.36 million to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the US Small Business Administration (SBA). The settlement was announced on Tuesday by the US Attorney's Office for the Middle District of Pennsylvania, concluding a case involving pandemic-era relief funds.
According to the US Attorney's Office, ID Logistics US submitted a PPP loan application certifying that it had fewer than 500 employees when it actually had more. This misrepresentation rendered the company ineligible for the loan, which was designed to support small businesses during the pandemic. The CARES Act of 2020 provided these forgivable loans to help retain jobs, with eligibility determined partly by the number of employees, including those at domestic and foreign affiliates.
A whistleblower who flagged the fraudulent application to authorities will receive $236,200 from the settlement, according to the Department of Justice. The company cooperated with the investigation, though the case represents a reputational setback for the logistics provider.
SBA General Counsel Wendell Davis stated that the agency is committed to rooting out every dollar of PPP fraud and will aggressively pursue bad actors to hold them accountable. Davis emphasised the importance of recovering pandemic relief funds that were improperly obtained from the program.
ID Logistics is a warehouse-based third-party logistics provider that operates 107 million square feet of distribution space across 450 sites in 20 countries. The company employs approximately 55,000 people and recently expanded its operations to Australia. In 2025, the group reported revenue of $4.43 billion, with first-half revenue this year reaching $2.4 billion, an increase of more than 18 per cent year over year.
The company noted strong performance in North America, where business grew 46 per cent at constant exchange rates. ID Logistics manages a second facility for SC Johnson near Chicago, which opened in the second quarter and employs nearly 200 people. The company also acquired Kane Logistics in 2022, adding 20 packaging and product distribution hubs based in Scranton, Pennsylvania.
