CIE Tours International agrees to pay over $4.4 million after receiving and seeking forgiveness for COVID-19 relief loans it was ineligible to obtain under federal guidelines.
MORRISTOWN, N.J. — A Morris County-based tour company has agreed to pay $4.43 million to settle allegations that it improperly received and had forgiven two Paycheck Protection Program (PPP) loans for which it was ineligible, federal authorities announced.
CIE Tours International Inc., located in Morristown, entered into a civil settlement with the United States to resolve claims brought under the False Claims Act, a federal statute that allows for liability when individuals or companies defraud government programs. The matter involved a whistleblower lawsuit filed in the District of New Jersey and stemmed from allegations that CIE Tours violated PPP eligibility rules during the COVID-19 pandemic.
According to the complaint and settlement terms, CIE Tours obtained two PPP loans totaling $3,410,300—despite being ineligible for the relief. The company was allegedly ineligible both because it is owned by the government of Ireland and because it exceeded the employee size limits set forth in the CARES Act, which established the PPP in March 2020 to help small businesses keep workers employed during the pandemic.
The company later sought and obtained forgiveness for the full amount of the loans.
The case was brought under the qui tam (whistleblower) provisions of the...
An appellate court has shut the door on reviewing the constitutionality of the qui tam provisions of the False Claims Act (FCA), although two other appellate courts are reviewing this issue, with ...