On Wednesday, September 17, Miles Partnership, LLC, a Sarasota-based travel consulting firm, agreed to pay over $2.2 million to settle civil allegations of improperly obtaining and receiving forgiveness for a Paycheck Protection Program (PPP) loan, as reported by the U.S. Attorney's Office. The PPP, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act was set up in March 2020 to support small businesses during the COVID-19 pandemic, and required applicants to be truthful in their applications.
Miles found itself embroiled in legal troubles after a whistleblower complaint by GNGH2, Inc. suggested the company had taken a $2 million second draw PPP loan despite being ineligible due to requirements under the Foreign Agents Registration Act (FARA) because of their work with foreign tourism boards, the investigation handled by U.S. Attorney Roger B. Handberg's office and the Small Business Administration (SBA)'s General Counsel Therese Meers led to this settlement. "The United States Attorney’s Office is committed to investigating and holding responsible those applicants who improperly obtained loans under the PPP program," U.S. Attorney Roger B. Handberg stated in a press release by the U.S. Attorney's Office.
In a further push against pandemic-related fraud, the COVID-19 Fraud Enforcement Task Force, created by the Attorney General in May 2021, works to prevent fraudulent activity impacting government relief. This reinforces existing systems, employing additional resources to identify deceitful schemes and share insights across government agencies, while the SBA in partnership with other law enforcement agencies and with the help of private individuals plays a significant role in uncovering borrower misconduct and recovering damages, as was the case with Miles.
Individuals with knowledge of any attempted fraud related to COVID-19 government relief programs can report their suspicions through the Civil Division’s Fraud Section webpage or by contacting the Department of Justice’s National Center for Disaster Fraud Hotline, this collaborative effort demonstrates a continued vigilance and a collective responsibility towards safeguarding the integrity of these vital relief measures.
The settlement with Miles does not constitute a determination of liability; it merely resolves the allegations brought forward in the whistleblower lawsuit, which results in GNGH2, Inc. receiving a portion $207,450 of the recovery for their participation in the case.
