Marymount Manhattan College has agreed to pay $8.39 million to settle allegations related to its receipt of a Paycheck Protection Program (PPP) loan. The settlement follows claims by the U.S. Attorney’s Office for the Southern District of New York that the college exceeded the program’s size eligibility requirements, which were established to provide financial assistance to small businesses and nonprofit organizations affected by the COVID-19 pandemic.
In a Department of Justice press release, U.S. Attorney Jay Clayton stated that the Paycheck Protection Program was established to offer forgivable loans to businesses facing financial challenges due to the pandemic. He added that some recipients did not meet the program’s eligibility requirements and said his office will continue pursuing cases involving improper use of public funds.
SBA Office of Inspector General Special Agent in Charge Amaleka McCall-Brathwaite stated that some entities misrepresented their eligibility to obtain funds from SBA programs created to assist small businesses affected by the COVID-19 pandemic. She said the SBA’s Office of Inspector General continues to focus on identifying and addressing fraud within its programs and will work with law enforcement partners to pursue accountability in such cases…