A Sterling Heights business has paid a hefty fine to settle an accusation that it made false claims regarding a $2.6 million loan it received under the Paycheck Protection Program during the COVID-19 pandemic, according to federal officials.

Slifco Electric LLC, owned by John P. Slifco, paid $1.46 million on the allegation it violated the U.S. False Claims Act by falsely indicating it had not paid any dividends or other capital distributions to its owner(s) during the loan forgiveness covered period when it fact it paid $730,000 in capital distributions to John Slifco for his personal expenses, U.S. Attorneys said Monday in a news release.

Slifco Electric’s first draw on the loan was in April 2020, and the company sought loan forgiveness, officials said.

“When businesses and individuals obtained COVID-19 relief funds that they didn’t deserve, taxpayers were cheated,” said Acting U.S. Attorney Julie A. Beck for the Eastern District of Michigan. “This office is committed to addressing fraud perpetrated against government programs, and we will continue to hold accountable those who violate the law.”

This matter was handled by Assistant U.S. Attorney Anthony Gentner from the U.S. Attorney’s Office in Detroit, with assistance from the Small Business Administration’s Office of General Counsel.

Slifco, located on 14 Mile Road, says it provides electrical contracting and construction.