Six Virginia nonprofit companies settle Paycheck Protection Program loan allegations
Summary
A U.S. Attorney's Office for the Eastern District of Virginia release from Alexandria reports that six Virginia organizations paid a combined $1,381,646 to settle civil fraud allegations that they were ineligible for the Paycheck Protection Program loans they received: Southampton Recreation Association, the National Association of Telecommunications Officers and Advisors, the Mid-Eastern Athletic Conference, Cheers, the Metropolitan Business League and the Employee Activity Association. The allegations were that each was a 501(c)(4) entity and not eligible for PPP funding. The settlements began with a whistleblower suit, United States ex rel. The Tarbell Group, LLC. v. Cheers et al., case number 1:24-cv-849, and the whistleblower received a ten percent share of each settlement. The release states that the claims are allegations only, with no determination of civil liability.
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Full text
ALEXANDRIA, Va. – Southampton Recreation Association located in Richmond, the National Association of Telecommunications Officers and Advisors located in Alexandria, the Mid-Eastern Athletic Conference located in Norfolk, Cheers located in Richmond, the Metropolitan Business League located in Richmond, and the Employee Activity Association located in McLean, paid a combined $1,381,646 to settle civil fraud allegations that they were ineligible for Paycheck Protection Program (PPP) loans that they received during the COVID-19 pandemic. The allegations were that each was a 501(c)(4) entity and not eligible to receive funding through the PPP. The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the U.S. Small Business Administration. The settlement began with a lawsuit, United States ex rel. The Tarbell Group, LLC. v. Cheers et al., filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims presented to the federal government and share in a portion of the government’s recovery . The whistleblower in this matter received a ten percent share of each settlement. The matter was investigated by Assistant U.S. Attorney John Beerbower and former Assistant U.S. Attorney Gina Kim. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia . Case records may be found on PACER under case number 1:24-cv-849. The civil claims settled are allegations only; there has been no determination of civil liability.
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