A Houston-based company specializing in ocean bottom node seismic acquisition services has paid more than $4 million to settle allegations related to Paycheck Protection Program (PPP) loan fraud, according to an announcement from U.S. Attorney Nicholas J. Ganjei.
Magseis FF LLC, a subsidiary of Magseis FF AS and owned by Norway’s Magseis Fairfield ASA during 2020 and 2021, provides 3D and 4D data services for oil and gas exploration companies. Between March 23, 2021, and January 11, 2022, the company applied for a “Second Draw” PPP loan and requested forgiveness under the CARES Act. The PPP was established to help small businesses affected by the COVID-19 pandemic through forgivable loans. Eligibility required fewer than 300 employees or meeting specific industry size standards, with affiliated entities required to count all employees together.
The settlement addresses claims that Magseis misrepresented its total number of employees when applying for PPP funds and subsequent loan forgiveness.
“The company has now paid $4,155,333 to resolve the claims and has cooperated throughout the investigation,” said the U.S. Attorney’s Office.
The case was investigated in coordination with the Small Business Administration (SBA). Assistant U.S. Attorney Paul B. Moore handled the matter along with Amber Perez from the SBA’s Office of General Counsel.
“The claims resolved by the settlement are allegations only and there has been no determination of liability,” stated authorities.
The U.S. Attorney for the Southern District of Texas operates from its headquarters in Houston and covers a jurisdiction that includes offices in several cities such as Galveston, Corpus Christi, Laredo, McAllen, and Brownsville as described on their official website. The office employs over 200 attorneys serving more than nine million people across 43 counties according to official information. It is responsible for prosecuting federal crimes and handling civil cases involving government interests as outlined on its website.
