"The Harvard Club of Boston, a private Back Bay association for the elite university's alumni and associates, will pay north of $2.4 million to settle allegations it defrauded a COVID-era loan program. The club, which is not formally affiliated with Harvard University, has agreed to the steep fine after applying for and receiving a loan for which it was ineligible, the U.S. Attorney's Office said Thursday."
"Back in 2021, the Harvard Club of Boston obtained a Paycheck Protection Program loan meant to help businesses pay their employees during the pandemic. However, as federal officials noted, private clubs with narrow membership requirements were ineligible under Small Business Administration rules. The Harvard Club of Boston later sought and received loan forgiveness from the SBA. As part of its settlement, the club will pay the federal government $2,472,187, including $1,648,125 in restitution."
"The allegations came to light in May, when whistleblower Daniel Foster took the club to federal court under the False Claims Act. According to the federal Department of Justice, the act allows private citizens to file suits on behalf of the U.S. against those who have defrauded the government. If they succeed, they may reap a portion of the reward in the process. Foster will receive approximately $247,219, the U.S. Attorney's Office said."
The Harvard Club of Boston obtained a Paycheck Protection Program loan in 2021 that was intended to help businesses pay employees during the pandemic. Federal rules excluded private clubs with narrow membership requirements from PPP eligibility, and the club later sought and received loan forgiveness from the SBA. As part of a settlement, the club will pay $2,472,187 to the federal government, including $1,648,125 in restitution. A whistleblower, Daniel Foster, filed suit under the False Claims Act and will receive approximately $247,219. Federal authorities credited the club for cooperating with the investigation.
Read at Boston.com
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