New England dealer Herb Chambers has agreed to pay $11.8 million to settle allegations of fraud brought by Leah B. Foley, the U.S. attorney for the District of Massachusetts. Foley accused eight Chambers-owned companies of improperly obtaining federal relief funds available under the 2020 Coronavirus Aid, Relief and Economic Security Act.

Executives tell Boston Globe reporter Tonya Alanez there was no attempt to defraud the government, which established a $20 million cap for commonly owned entities under the Paycheck Protection Program (PPP). Chambers blamed “mass confusion” over shifting guidelines for a chain of events that led to what prosecutors contend was an attempt to evade the cap.

“Once the issue had been identified, Mr. Chambers directed that management work cooperatively and diligently with federal authorities to rectify and to resolve the situation,” writes Nicolas Gennetti, CEO of the Herb Chambers Companies, in an email to the Globe. “The settlement acknowledges this cooperation. All PPP loan proceeds were used for proper purposes, and there is no allegation otherwise.”

Chambers agreed to sell his network of Massachusetts and Rhode Island dealerships and collision centers to Asbury Automotive in February. The $1.34 billion deal is expected to close this summer, according to the Globe.

Read more at the Boston Globe