Marcus Evans, Inc., a Delaware-based company, has agreed to pay $2.86 million to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan for which it was not eligible. The PPP was created in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act to help small businesses continue operations during the COVID-19 pandemic.
The program required applicants to certify they had no more than 300 employees, including all domestic and foreign affiliates. Marcus Evans is part of the Marcus Evans Group, an international business intelligence and events company offering management services such as conferences and professional training across multiple industries.
According to authorities, on March 17, 2021, Marcus Evans applied for and received a $1.83 million PPP loan after certifying that its total number of employees was below the eligibility threshold. The company later sought and received full forgiveness of this loan from the Small Business Administration (SBA). However, investigators found that when combined with its affiliates worldwide, Marcus Evans had over 300 employees at the time of application and therefore did not qualify for the program.
U.S. Attorney Benjamin L. Wallace announced the settlement. Assistant U.S. Attorney Jacob Laksin managed the case with support from Christopher J. McClintock of the SBA.
Part of this civil settlement resolves claims under the whistleblower provisions of the False Claims Act. These provisions allow private individuals—referred to as relators—to file actions on behalf of the United States and potentially receive a portion of any recovery resulting from those actions. In this instance, the relator will receive a share of the settlement.
Individuals who have information about potential fraud involving COVID-19 relief programs are encouraged to report tips through channels such as calling 866-720-5721 or submitting details via https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
“The claims resolved by the settlement are merely allegations,” according to officials involved in announcing today’s resolution. “There has been no determination of liability.”
