MORRISTOWN, N.J. (Morris County) — A Morris County tour company has agreed to pay more than $4.4 million to settle allegations that it improperly obtained and received forgiveness for Paycheck Protection Program loans for which it was not eligible, federal officials announced.
According to Senior Counsel Philip Lamparello, CIE Tours International Inc. entered into a settlement with the United States resolving allegations that it violated the False Claims Act by applying for and receiving two loans through the federal pandemic relief program.
CIE Tours is a New York for-profit corporation that maintains offices in Morristown, New Jersey.
Congress created the Paycheck Protection Program in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act to provide emergency financial assistance to small businesses affected by the COVID-19 pandemic. The program authorized billions of dollars in forgivable loans to help employers cover payroll and other business expenses.
Federal authorities allege that CIE Tours applied for and received two PPP loans totaling $3,410,300 despite being ineligible because it is owned by the government of Ireland and exceeded the employee size limits set by the program. The company later sought and obtained forgiveness for the full amount of the loans, according to the settlement agreement.
CIE Tours fully cooperated with the investigation, officials said. Under the terms of the settlement, the company agreed to pay $4,428,985.04 to the United States.
The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which allows private individuals to bring claims on behalf of the government and share in any recovery. In this case, the whistleblower, known as the relator, will receive $428,985 as a share of the proceeds.
Lamparello credited the Small Business Administration’s Office of General Counsel for its assistance in the case. The government was represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud and Opioids Enforcement Unit in Newark.
Federal officials encouraged anyone with information about suspected COVID-19 relief fraud to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint through the agency’s online reporting system.
