Harvard Club of Boston to pay $2.4 million for defrauding pandemic aid program, prosecutors say

Business

The club, which is not formally affiliated with Harvard University, applied for and received a loan for which it was ineligible.

By Abby Patkin

January 16, 2026 | 2:47 PM

1 minute to read

The Harvard Club of Boston, a private Back Bay association for the elite university’s alumni and associates, will pay north of $2.4 million to settle allegations it defrauded a COVID-era loan program. 

The club, which is not formally affiliated with Harvard University, has agreed to the steep fine after applying for and receiving a loan for which it was ineligible, the U.S. Attorney’s Office said Thursday. 

Back in 2021, the Harvard Club of Boston obtained a Paycheck Protection Program loan meant to help businesses pay their employees during the pandemic. However, as federal officials noted, private clubs with narrow membership requirements were ineligible under Small Business Administration rules. The Harvard Club of Boston later sought and received loan forgiveness from the SBA.

As part of its settlement, the club will pay the federal government $2,472,187, including $1,648,125 in restitution. The Harvard Club of Boston did not immediately respond to a request for comment Friday. 

The allegations came to light in May, when whistleblower Daniel Foster took the club to federal court under the False Claims Act. According to the federal Department of Justice, the act allows private citizens to file suits on behalf of the U.S. against those who have defrauded the government. If they succeed, they may reap a portion of the reward in the process. 

Foster will receive approximately $247,219, the U.S. Attorney’s Office said. It was not immediately clear what, if any, relationship he had to the club.

Federal authorities also credited the Harvard Club of Boston for its cooperation, and the settlement noted that the club “produced materials without a subpoena, cooperated with the government’s investigation, disclosed the findings of its internal investigation, and sought to resolve this matter expeditiously.”

According to The Harvard Crimson, club president Susan L. Kendall, in an email to members, admitted to submitting an ineligible application for a PPP, though she maintained the club did so “unintentionally” and called the eligibility requirements “confusing.”

“We are using the opportunity to review how we assess future participation in government programs and strengthen our compliance protocols,” Kendall wrote, according to the Crimson.

Abby Patkin is a general assignment news reporter whose work touches on public transit, crime, health, and everything in between.