MikeWorldWide is paying back $2.29 million with interest for taking out and receiving forgiveness for a $2 million Paycheck Protection Program loan it allegedly was not eligible for, according to the New Jersey U.S. Attorney’s Office. 

Congress created PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security Act to provide emergency financial support to Americans suffering from the economic effects caused by the pandemic. 

MWW said in a statement that it is voluntarily reimbursing the federal government for its second PPP loan to “avoid the distraction and expense of litigation.” The involved parties reached an agreement in October, a MWW spokesperson said. 

“This is a civil matter solely,” the firm said. “MWW has not been accused of any wrongdoing in the use or purpose of the funds. It’s important to note that no fines were assessed.”

According to the Justice Department, MWW was registered under the Foreign Agent Registration Act in February 2021, when it applied for the second loan, rendering the agency ineligible for PPP. The foreign work was for the Israeli Ministry of Tourism, according to a MWW spokesperson. 

MWW attributed the “potential error” to “the unintentional action of the company’s former CFO, who was not aware that a minor FARA filing in 2021 could make the company ineligible for the second loan.”

“It should be noted that MWW received no revenue nor did any employee of the company work on the engagement during the period in question,” the firm said in its statement. “Further, given the ambiguity of the FARA statute, it is in question whether MWW was actually required to file the FARA report during these periods and if it was, in fact, ineligible for the loan.”

The agency said it agreed to reimburse the equivalent of the loan “to avoid any appearance of impropriety whatsoever.” The settlement has had no effect on MWW’s business, a spokesperson said. A “significant portion” is being paid by the firm’s insurance carrier, according to the company’s statement. 

Aidan Forsyth, the individual who filed the lawsuit against MWW in January under the whistleblower provision of the False Claims Act, is receiving $229,000 for his role in the matter, according to the U.S. Attorney’s Office. 

In a statement, the U.S. Attorney’s Office said MWW “fully cooperated in the investigation and resolution of this matter.” The firm thanked the Department of Justice for being “a reasonable and productive participant,” and said it appreciates the federal agency’s “interest in resolving this matter amicably.”

MWW’s revenue rose 17% to $53 million globally and 18% to $48.8 million in the U.S. in 2022, according to PRWeek’s 2023 Agency Business Report. Last month, the firm hired 160over90’s Rob Bronfeld to co-lead its consumer brand practice. 

This article originally appeared on PRWeek US.