CHESHIRE, CT — The U.S. Attorney's Office for the District of Delaware announced Wednesday, Oct. 28, 2026, that Carten-Fujikin Inc. agreed to pay $774,812.51 to settle allegations tied to a $500,000 COVID-19 relief loan. The company is incorporated in Delaware, with its principal place of business in Cheshire.
Benjamin L. Wallace, U.S. Attorney for Delaware, announced the settlement. Carten-Fujikin produces integrated gas systems and valve products for the semiconductor industry. It received the loan on or about Jan. 28, 2021, during the second round of the U.S. Small Business Administration's Paycheck Protection Program. The loan was forgiven afterward.
Federal Officials Say the Company Was Ineligible
Federal officials alleged that the company did not qualify for the loan because it and its affiliates employed more than 300 people. They also alleged that its parent company's operations in China made it ineligible under the second-round rules.
Japanese company Fujikin Incorporated owns Fujikin of America Inc., which in turn owns all of Carten-Fujikin. Officials said a Fujikin Japan subsidiary operated several locations in China.
The settlement is a civil resolution, not a judicial finding of liability. The case, No. 25-1206-CFC in the District of Delaware, resolves claims brought under the False Claims Act's qui tam provisions, which allow private individuals to sue on the government's behalf and share in a recovery.