Group Voyagers, Inc., a travel company based in Denver, Colorado, has agreed to pay $3 million to resolve allegations involving the False Claims Act. The allegations suggest that the company unlawfully applied for and received a Paycheck Protection Program (PPP) loan, although it was not eligible.
The Paycheck Protection Program was introduced under the CARES Act in March 2020 to assist small businesses in maintaining payrolls and expenses during the COVID-19 pandemic. Eligibility for these loans required businesses to employ fewer than a certain number of workers, including affiliates. The accusations against Group Voyagers claim the company misrepresented the number of employees to appear eligible for this aid.
Allegations were highlighted by a whistleblower, leading to a legal action filed under the False Claims Act. This lawsuit, titled United States ex rel. Verity Investigations LLC v. Group Voyagers, Inc., will award the whistleblower $375,000 from the settlement.
Acting U.S. Attorney J. Bishop Grewell underscored the importance of accuracy in applications for federal programs: "When applying to participate in a federal program, companies must ensure that their applications are fully accurate and that they are eligible to participate in the program."
Tim Larson, SBA's OIG Western Region Assistant Special Agent in Charge, emphasized the commitment to monitor the use of taxpayer funds, stating, "This settlement demonstrates that unlawfully obtaining taxpayer dollars will not go unchecked."
The settlement was an outcome of cooperative efforts by the U.S. Attorney’s Office for the District of Colorado and SBA OIG. The resolution does not mean that Group Voyagers admits liability for the allegations.
