International ocean bottom seismic operations company pays over $4 million to settle False Claims Act allegations

HOUSTON - A Houston-based company that provides ocean bottom node seismic acquisition services to energy companies has paid to resolve allegations of fraudulently securing Paycheck Protection Program loans, announced U.S. Attorney Nicholas J. Ganjei.

In 2020 and 2021, Magseis FF LLC was a subsidiary of Magseis FF AS, which Norway-based Magseis Fairfield ASA owned. The company and its affiliates offer 3D and 4D data services to oil and gas exploration and production companies.

From March 23, 2021, to Jan. 11, 2022, Magseis applied for a "Second Draw" PPP loan and requested forgiveness. The CARES Act created the PPP to provide forgivable loans to small businesses affected by the COVID-19 pandemic. To qualify for these loans, companies had to have fewer than 300 employees or meet industry-specific size limits. Those with shared ownership had to count all affiliated employees.

The settlement resolves allegations that Magseis misrepresented its total employee count to obtain PPP funds and loan forgiveness.

The company has now paid $4,155,333 to resolve the claims and has cooperated throughout the investigation.

The U.S. Attorney's Office conducted the investigation in coordination with the Small Business Administration. Assistant U.S. Attorney Paul B. Moore is handling the matter along with Attorney Amber Perez, Office of General Counsel for the SBA.

The claims resolved by the settlement are allegations only and there has been no determination of liability.