Six Virginia nonprofit organizations have paid a combined $1,381,646 to settle civil fraud allegations claiming they improperly obtained Paycheck Protection Program (PPP) loans during the COVID-19 pandemic.
The organizations include:
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Southampton Recreation Association (Richmond)
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National Association of Telecommunications Officers and Advisors (Alexandria)
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Mid-Eastern Athletic Conference (Norfolk)
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Cheers (Richmond)
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Metropolitan Business League (Richmond)
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Employee Activity Association (McLean)
According to federal prosecutors, the entities were classified as 501(c)(4) organizations and therefore not eligible for PPP funding.
The settlements stem from a whistleblower lawsuit, United States ex rel. The Tarbell Group, LLC v. Cheers et al., filed under the False Claims Act, which allows private parties to bring actions on behalf of the federal government and receive a share of any recovered funds. The whistleblower in this case was awarded 10% of each settlement.
The investigation and resolutions were handled jointly by the U.S. Attorney’s Office for the Eastern District of Virginia and the U.S. Small Business Administration. Assistant U.S. Attorney John Beerbower and former Assistant U.S. Attorney Gina Kim investigated the case.
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