Complaint — GNGH2 v. Miles Partnership (M.D. Fla.)

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A qui tam Complaint in United States of America ex rel. GNGH2 Inc. v. Miles Partnership, LLC, Case 8:23-cv-00649-WFJ-AAS, in the U.S. District Court for the Middle District of Florida, Tampa Division, filed March 23, 2023 as Document 1. The relator alleges that Miles Partnership falsely certified on Form 2483-SD on or about January 23, 2021 that it was not required to register under the Foreign Agents Registration Act. It alleges the company served as a publicity agent for foreign tourism boards including the Bermuda Tourism Authority and received second-round PPP funding of $2,000,000, forgiven October 21, 2021. Count I claims a violation of the False Claims Act, 31 U.S.C. Section 3729(a)(1)(B), and the relator seeks judgment of $6,000,000. It is signed by David Abrams, Attorney for Relator.

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, Case 8:23-cv-00649-WFJ-AAS Document1 Filed 03/23/23 Page 1 of 6 PagelD 1

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
Middle District of Florida
Tampa Division

United States of America ex rel.
GNGH2 Inc.,

Plaintiff-Relator,
- against -

Miles Partnership, LLC

Defendant.

To Be Submitted Under Seal

)
)
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Index No.:
) Complaint
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Plaintiff-Relator, complaining of the Defendant 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

Sob U8
, Case 8:23-cv-00649-WFJ-AAS Document1 Filed 03/23/23 Page 2 of 6 PagelD 2

required to register under the Foreign Agent Registration Act, 22 U.S.C. 611 et
seq.

II. Parties

2. Defendant Miles Partnership LLC ("Miles Partnership" or "Defendant") is a
Florida limited liability with a principal place of business in the State of Florida,
County of Sarasota.

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 this District.

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.
Case 8:23-cv-00649-WFJ-AAS Document1 Filed 03/23/23 Page 3 of 6 PagelD 3

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, Defendant is headquartered
in Sarasota, Florida, in the Middle District of Florida.

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. Allof 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."

10. The CARES Act contains a provision which permitted qualifying business
which were affected by the foregoing disruption to obtain forgivable disaster

loans.
Case 8:23-cv-00649-WFJ-AAS Document 1 Filed 03/23/23 Page 4 of 6 PagelD 4

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. Defendant is a strategic marketing agency which focuses on travel and
tourism. It received second-round disaster relief as follows:

Loan Number _— Date Amount Forgiven

4997198305 1/23/2021 $2,000,000 10/21/2021
14. Thus, on or about January 23, 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)"
15. The above-referenced certifications were false when made in that at all
times relevant to this matter, the Defendant served as a publicity agent and
public-relations counsel for various foreign tourism boards including the
Bermuda Tourism Authority.
16. Accordingly, Defendants is an entity which is required to submit

registration statements under 22 U.S.C. Section 612, i.e. to register under FARA.
Case 8:23-cv-00649-WFJ-AAS Document1 Filed 03/23/23 Page 5 of 6 PagelD 5

17. Thus, Defendant made fraudulent representations when it completed form
2483-SD.

18. Asa 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

19. 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)

20. 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.")
21. Thus, the Defendant's certification of eligibility violated the False Claims
Act because it was false and required for eligibility for disaster relief.

VII. Relief Sought

22. 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.
, Case 8:23-cv-00649-WFJ-AAS Document1 Filed 03/23/23 Page 6 of 6 PagelD 6

23. Defendant received $2,000,000 in disaster relief as a result of the
certifications set forth above.

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

Dated: Delhi, New York
March 19, 2023


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