Milwaukee-based
BVK, Inc., a full-service advertising agency, has reached a settlement agreement with the
Department of Justice following allegations the company wrongfully received a second-draw
Paycheck Protection Program (PPP) loan. BVK will pay $2.25 million to settle the claim, according to a press release from the Eastern District of Wisconsin U.S. Attorney’s Office.
BVK does not admit liability for the allegations. The company did not immediately respond to a request for comment Friday.
In December 2020, Congress authorized certain borrowers who received earlier PPP loans to apply for a “second-draw” loan. Any organization required to register with the attorney general under the Foreign Agents Registration Act (FARA) was not authorized to receive a second-draw PPP loan. A FARA registration is required for companies doing certain work on behalf of foreign governments.
According to the press release, at the time BVK applied for a second-draw loan, the company was doing public relations work on behalf of the Dominican Republic Ministry of Tourism. This work did require a FARA registration, which made BVK ineligible for a second-draw loan.
BVK did end up receiving a $2 million second-draw loan after sending in an application without noting its FARA registration obligation, according to the press release.
“The government’s investigation resulted from a whistleblower complaint filed under the
qui tam provisions of the False Claims Act,” reads the release. “The whistleblower will receive a share of the settlement.”
A representative with BVK did not return a phone call seeking comment.
