Washington ― The U.S. Department of Justice says Michigan's largest teachers union and an affiliate will pay $225,887 to settle allegations that they violated the federal False Claims Act by applying for and receiving loans under the COVID-era Paycheck Protection Program that they were not eligible for.

The Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA) previously repaid their loan proceeds, over $12.5 million total, in December 2020, according to the DOJ.

Both East Lansing-based organizations have denied any wrongdoing. The union represents about 120,000 teachers, education support professionals and higher-education employees throughout Michigan, and MESSA is its affiliated health insurance entity, which manages health insurance benefits for unionized teachers and other public sector employees.

“Those who violate the False Claims Act by fraudulently receiving SBA pandemic program funds meant for eligible small businesses will be held accountable,” said Special Agent in Charge Sharon Johnson of the Small Business Administration's Office of the Inspector General's central region, in a statement.

“Today’s settlements send a strong message that those responsible will be held accountable. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”

Prosecutors alleged that MEA and MESSA knew or should have known they were ineligible to receive PPP loans, and that...

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