May 6, 2010 — Ciena Capital LLC.
Ciena Capital LLC, a private non-depository lender located in New York City, has agreed to pay $26.3 Million to settle qui tam claims filed against it by a private relator, James R. Brickman.
The Small Business Association (SBA), through various lending programs, provides financial assistance to small businesses by guaranteeing up to 85% of the value of loans made by private lenders.
The allegations of the case were that Ciena, and a subsidiary, Business Loan Center (BLC) falsely certified that they had complied with SBA regulations when they submitted claims for payment on loans they had originated, underwrote and serviced. Some of the loans defaulted shortly after they were made as a result of Ciena’s and BLC’s disregard of SBA Rules.
As a reward for having filed his qui tam claim, Mr. Rice will receive nearly $4.3 Million.
See U.S. Dept of Justice Press Release 05/06/10