Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
The Energy Federation, Inc. (EFI), a nonprofit based in Franklin, Massachusetts, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by obtaining a Paycheck Protection Program (PPP) loan for which it was not eligible.
EFI is a 501(c)(4) organization that provides advice on energy efficiency and heating assistance to homeowners. According to federal authorities, EFI was not eligible for PPP loans because the program did not allow 501(c)(4) organizations to participate. The PPP was established by Congress to help small businesses during the COVID-19 pandemic and was administered by the Small Business Administration (SBA) in two rounds, first in April 2020 and again in February 2021.
Despite discussing its eligibility with its bank, EFI submitted a PPP loan application without disclosing its status as a 501(c)(4). In the application, EFI certified that it met the requirements at the time of submission. After receiving the loan, EFI also applied for and received forgiveness based on these certifications.
The settlement follows allegations raised in a lawsuit filed under the qui tam provisions of the False Claims Act. These provisions allow private individuals—known as relators—to sue on behalf of the government and share in any recovery from such lawsuits. As part of this settlement, the whistleblower will receive 10 percent of the recovered amount.
United States Attorney Leah B. Foley and representatives from the U.S. Small Business Administration announced the resolution. Assistant U.S. Attorney Julien M. Mundele of the Affirmative Civil Enforcement Unit managed this case.
