Group Voyagers, Inc., a tour operator based in Denver, Colorado, has agreed to pay $3 million to settle allegations that it unlawfully received a Paycheck Protection Program (PPP) loan. The announcement came from the United States Attorney’s Office for the District of Colorado, which cited a violation of the False Claims Act in the company's PPP loan application process.
The Paycheck Protection Program was a loan initiative designed to help small businesses maintain payrolls and manage expenses during the COVID-19 pandemic. Administered by the Small Business Administration as part of the CARES Act, it was specifically intended for small businesses. Eligibility was partially determined by the number of employees within a company and its affiliates.
Group Voyagers, known for its travel packages marketed under the Globus family of brands, allegedly misrepresented its eligibility for the loan by claiming to have fewer than 300 employees. In reality, the company, along with its foreign affiliates, employed over 300 individuals, making it ineligible for the PPP loan.
The allegations were initially reported to the federal government via a whistleblower's false claims action under the False Claims Act. The whistleblower is set to receive $375,000 as part of the settlement in the case titled: United States ex rel. Verity Investigations LLC v. Group Voyagers, Inc., Civil Action No. 24-cv-01671-KAS (D. Colo.).
The U.S. Attorney's Office commended Group Voyagers for its cooperation once the allegations came to light, noting, “Our office will aggressively enforce eligibility limitations that Congress imposes for participation in federal programs," stated Acting U.S. Attorney J. Bishop Grewell. "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, Assistant Special Agent in Charge of SBA Office of Inspector General's Western Region, stated, “Those who violate the False Claim Act by wrongfully pursuing and retaining SBA program funding will be held accountable.” He emphasized the importance of accountability and expressed gratitude to the U.S. Attorney’s Office and other law enforcement partners for their dedication.
It is important to note that the settlement agreement does not imply an admission of liability by Group Voyagers.
This investigation was the outcome of collaboration between the U.S. Attorney’s Office for the District of Colorado and the SBA OIG.