Herb Chambers, PPP Loan Fraud, Massachusetts 2026

Massachusetts Businessman to Pay $11.8 Million to Resolve PPP Loan Fraud Allegations

BOSTON – Herb Chambers, a prominent Massachusetts businessman, and several of his companies have agreed to pay approximately $11.8 million to resolve False Claims Act allegations that they falsely certified to the United States Small Business Administration (SBA) their eligibility for Paycheck Protection Program (PPP) loans.

According to the settlement agreement, Chambers and his companies admitted that eight of their businesses had applied for, but not yet received, funding for PPP loans as of April 30, 2020, when the SBA published an Interim Final Rule (IFR) that established a $20 million cap on PPP loans for businesses within a single corporate group. The bank that had initially funded the loans canceled them due to the cap, but the companies later reapplied for the loans through a different bank, which funded them.

The United States contends that the SBA's IFR applied to Chambers' companies and that they were not eligible for the PPP loans because the SBA had already funded over $20 million to other Chambers-owned businesses. The settlement resolves allegations that Chambers and his companies tried to game the system by applying for PPP loans despite being ineligible.

“The Paycheck Protection Program was created to provide a financial lifeline to small businesses struggling to stay afloat during the unprecedented COVID crisis – not to serve as a funding mechanism for companies that sought to evade program limits,” said United States Attorney Leah B. Foley. “Today’s resolution demonstrates our office’s unwavering commitment to protecting taxpayer-funded relief programs and holding accountable those who misuse them.”

The FBI and the U.S. Small Business Administration joined U.S. Attorney Foley in announcing the settlement. Assistant U.S. Attorneys Charles B. Weinograd and Alexandra Brazier handled the matter.

Mandatory Facts: Defendant/Respondent: Herbert G. Chambers, exact criminal charges: Falsely certifying eligibility for Paycheck Protection Program (PPP) loans, city and state: Boston, Massachusetts, exact date: Not specified, sentence or outcome: $11.8 million settlement, dollar amounts: $11.8 million.

Source: https://www.justice.gov/usao-ma/pr/herb-chambers-agrees-pay-118-million-resolve-allegations-ppp-loan-fraud