Harvard club to pay back $2.4 million to settle pandemic loan fraud lawsuit
The Harvard Club of Boston will repay $2.4 million to settle a lawsuit alleging it fraudulently obtained a PPP loan during the pandemic.Summary
The Harvard Club of Boston has agreed to a $2.4 million settlement resolving allegations of fraudulently obtaining a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic. The U.S. Attorney’s Office, District of Massachusetts, accused the club of violating the False Claims Act by falsely certifying its eligibility for the funds. Despite being a private membership club with restricted access – a disqualifying factor for PPP loans – the Harvard Club applied for and received a loan in May 2021, and subsequently received full forgiveness of that loan a year later.
The settlement resolves the claim without admitting liability, but the Harvard Club acknowledged it “caused the submission of false claims” to the Small Business Administration. The club, which operates independently from Harvard University, describes itself as a “social, intellectual and wellness hub for Harvard alumni” and is located at 374 Commonwealth Avenue in Boston.
(Source：Masslive)