Parsippany Company To Pay $2.2M In COVID Funds To Settle Fraud Case

PARSIPPANY, NJ — A Parsippany-based public relations firm that fraudulently obtained $2 million in COVID-19 relief funds has settled a matter with federal authorities in which it will repay the entire amount plus some additional funds.

Coyne Public Relations LLC, located at 5 Wood Hollow Road, knowingly applied for and received a Paycheck Protection Program loan totaling $2,235,016 million, despite being ineligible for such a loan, according to the allegations in the complaint and the United States' contentions in the settlement agreement.

Coyne, founded in 1991, has grown to become one of the Top 20 Independent Public Relations Firms in the United States, with a client list that includes many of the world's most respected companies, including BMW, Pfizer, VTech, Shell Oil and Courvoisier, to name a few.

According to a statement from the US Attorney's Office, the Parsippany-based company was ineligible because it was a required registrant under the Foreign Agent Registration Act.

The Paycheck Protection Program loan was established by Congress in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to millions of Americans affected by the COVID-19 pandemic.

According to Sellinger, the CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

Coyne fully cooperated with the investigation and agreed to repay the United States $2.24 million, according to federal prosecutors.

According to investigators, the settlement resolves a lawsuit filed under the False Claims Act's whistleblower provision, which allows private parties, known as relators, to file suit on behalf of the United States for false claims and share in a portion of the government's recovery.

In this matter, the relator is receiving $203,183 as his share in the recovery.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov.