Complaint — United States ex rel. GNGH2 v. Coyne Public Relations (District of New Jersey, December 9, 2021)

Summary

A five-page qui tam complaint, Document 1 in United States ex rel. GNGH2 Inc. v. Coyne Public Relations, LLC, Case 2:21-cv-20422-MCA-CLW, filed 12/09/21, in the U.S. District Court for the District of New Jersey and marked "To be filed under seal." Relator GNGH2 Inc. alleges that Coyne Public Relations, LLC falsely certified on Form 2483-SD that it was not required to register under the Foreign Agents Registration Act, because it represented the Cayman Islands Department of Tourism, South African Tourism and the Hong Kong Tourism Board. The complaint lists loans of $2,351,507 (4/9/2020) and $2,000,000 (2/5/2021) and asserts one False Claims Act count under 31 U.S.C. Section 3729(a)(1)(B). It seeks judgment of $6,000,000 and is signed by David Abrams, Attorney at Law, for the relator.

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 Case 2:21-cv-20422-MCA-CLW Document 1 Filed 12/09/21 Page 1 of 5 PageID: 1


                                                     TO BE FILED UNDER SEAL
David Abrams, Attorney at Law
PO Box 3353 Church Street Station
New York, New York 10008
Tel. 212-897-5821 dnabrams@gmail.com

United States District Court
District of New Jersey
__________________________________________
                                          )
United States of America ex rel.          )
GNGH2 Inc.,                               )
                                          )
                    Plaintiff-Relator,    )
                                          )
            - against -                   )                  Index No.:
                                          )
COYNE PUBLIC RELATIONS, LLC,              )                  Complaint
                                          )
                                          )
                    Defendants.           )
__________________________________________)

       Plaintiff-Relator, complaining of the Defendants by its attorney, David Abrams, Attorney

at Law, respectfully sets forth and alleges as follows:

I.     Nature of the Case

1.     This is a false claims act claim. The Qui Tam Plaintiff and Relator, GNGH2 Inc.

("Relator"), alleges that the Defendant fraudulently obtained CARES Act disaster relief by

means of fraudulent certifications of eligibility. As set forth in more detail below, second-round

PPP funding is barred to persons who are required to register under the Foreign Agent

Registration Act, 22 U.S.C. 611 et seq.

II.    Parties

2.     Defendants COYNE PUBLIC RELATIONS LLC ("Defendant") is a New Jersey Limited

Liability Company.. Defendant maintains an office at 5 Wood Hollow Road, Parsippany, New

Jersey 07054.
 Case 2:21-cv-20422-MCA-CLW Document 1 Filed 12/09/21 Page 2 of 5 PageID: 2




3.        The Relator, GNGH2 Inc. ("Relator" or "Plaintiff") is a New Jersey corporation with a

principal office in the State of New Jersey, County of Bergen.

III       Compliance with Requirements of Suit

4.        This matter will be filed under seal pursuant to 31 U.S.C. Section 3730(b) and at or about

the same time, a copy of the Complaint, Sealing Order, and Relator's disclosure of evidence will

be served on the Department of Justice and the United States Attorney for the District of New

Jersey.

5.        Relator will not serve the Complaint or any other papers in this matter until and unless it

becomes unsealed. Thus, if the Complaint is served on the Defendant, it means that the matter

has been duly unsealed.

IV.       Jurisdiction and Venue

6.        This Court has jurisdiction pursuant to 31 U.S.C. Section 3732(a) which provides that

this type of action may be brought in any district where any Defendant resides or transacts

business. In this case, the Defendant resides in New Jersey.

V.        Background

7.        Throughout most of 2020 and continuing into 2021, the United States was faced with a

large scale outbreak of the virus commonly known as "Coronavirus" and "COVID-19." (the

"Coronavirus Epidemic").

8.        In addition to the Coronavirus Epidemic itself, the United States was faced with large

scale outbreaks of panic and hysteria as a result of the Coronavirus Epidemic.

9.        All of the above has resulted in major economic disruption and as a result Congress

enacted the Coronavirus Aid, Relief, and Economic Security Act, commonly known as the

"CARES Act."




                                                   2
 Case 2:21-cv-20422-MCA-CLW Document 1 Filed 12/09/21 Page 3 of 5 PageID: 3




10.     The CARES Act contains a provision which permitted qualifying business which were

affected by the foregoing disruption to obtain forgivable disaster loans.

11.     The CARES Act was subsequently amended to provide for a second round of disaster

funding. Significantly, an applicant is ineligible for such funding if it is required to register

under the Foreign Agent Registration Act ("FARA").

12.     The Defendant in this matter is a Public Relations firm. It received first and second

round disaster relief as follows:

Date                   Loan Number                     Amount                  Forgiven

4/9/2020               9019917008                      $2,351,507              7/7/2021

2/5/2021               4288438509                      $2,000,000              10/5/2021

13.     Thus, on or about February 5, 2021, Defendant completed Form 2483-SD which required

it to certify that "[t]he Applicant is not required to submit a registration statement under section 2

of the Foreign Agents Registration Act of 1938 (22 U.S.C. 612)"

14.     This certification was false when made as set forth below.

15.     In or about June of 2015, Defendant became the AOR (agency of record) for the Cayman

Islands Department of Tourism ("CIDoT") has been AOR for the CIDoT at all times relevant to

this matter.

16.     Indeed, in connection with this representation, the Defendant submitted FARA

registration number 6177.

17.     Further, at all times relevant to this matter, the Defendant served as AOR for South

African Tourism which is the "tourism marketing arm of the South African government."

18.     Further, at all times relevant to this matter, the Defendant served as PR representative to

the Hong Kong Tourism Board.




                                                  3
 Case 2:21-cv-20422-MCA-CLW Document 1 Filed 12/09/21 Page 4 of 5 PageID: 4




19.     The CIDoT; South African Tourism; and the Hong Kong Tourism Board "foreign

principals" within the meaning of 22 U.S.C. Section 611(b)(1) and 611(e) in that they are all

agencies of foreign governments.

20.     Further, Defendant is an "agent of a foreign principal" within the meaning of 22 U.S.C.

Section 611 in that it acts in the United States as a publicity agent for the above-referenced

foreign principals.

21.     Accordingly, Defendant is an entity which is required to submit a registration statement

under 22 U.S.C. Section 612.

22.     Thus, Defendant made a fraudulent representation when it completed form 2483-SD.

23.     As a result of these statements, the Defendant received substantial funds to which it

would not otherwise have been entitled.

VI.     (Count I) Violation of the False Claims Act

24.     The False Claims Act imposes liability on a person or entity who " knowingly makes,

uses, or causes to be made or used, a false record or statement material to a false or fraudulent

claim" 31 U.S.C. Section 3729(a)(1)(B)

25.     The Courts have held that this can include false statements regarding eligibility to

participate in a program. See United States ex rel. Kirk v. Schindler Elevator Corp., 601 F.3d

94, 116 (2d Cir. 2010), rev'd on other grounds, 131 S.Ct. 1885 (2011) ("[C]laims may be false

even though the services are provided as claimed if, for example, the claimant is ineligible to

participate in the program.")

26.     Thus, the Defendant's certifications of eligibility violated the False Claims Act because

they were false and required for eligibility for disaster relief.




                                                   4
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VII.   Relief Sought

26.    On behalf of the government, Relator is seeking judgment for the triple damages and civil

penalties set forth in 31 U.S.C. Section 3729.

27.     The Defendant received $2,000,000 in disaster relief as a result of the certifications set

forth above.

28.    Accordingly, Relator seeks judgment in the amount of $6,000,000 against the Defendant

and in favor of the United States, together with costs, interest, civil penalties, an appropriate qui

tam award, and such other and further relief as the Court deems just.



                                       Respectfully submitted,




                                       ___________________________

                                       David Abrams, Attorney at Law
                                        Attorney for Relator
                                       GNGH2 Inc.

                                       PO Box 3353 Church Street Station
                                       New York, NY 10008
                                       Tel. 212-897-5821
                                       Fax 212-897-5811
Dated: New York, NY
       December 9, 2021




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