Latest news with #HerbChambers
Axios
10-04-2025
- Business
- Axios
Herb Chambers dealerships to pay $11.8M in PPP fraud case
Car dealership chain owner Herb Chambers has agreed to pay $11.8 million to settle federal allegations that his companies fraudulently obtained pandemic-era government loans. State of play: Federal prosecutors allege eight Chambers-owned companies requested Paycheck Protection Program loans after a decision by the Small Business Administration limited a single corporate group to $20 million. A bank initially canceled Chambers' unfunded loan applications because of the cap, but the companies reapplied with a different bank that funded the loans. The other side: Herb Chambers Companies CEO Nicolas Gennetti said the loan program violation stemmed from "conflicting professional advice" and "vague and unclear language" in the loan requirements.
Yahoo
09-04-2025
- Business
- Yahoo
Herb Chambers, numerous of his companies, agree to pay $11.8 million for PPP loan fraud allegations
In an agreement to resolve False Claims Act allegations, Herb Chambers, several of his companies, and an officer of one of his companies are paying $11.8 million for Paycheck Protection Program (PPP) loan fraud allegations. In 2020, the United States Small Business Administration (SBA) passed an Interim Final Rule (IFR) that stated businesses apart of a single corporate group could not receive more than $20 million in PPP loans. The U.S. argues that the SBA's IFR applied to Chambers' companies and states that eight of the companies were not eligible for PPP loans because the SBA had already given $20 million to other businesses owned by Chambers. '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. In a settlement agreement, the eight companies applied for the PPP funding but had not yet received it by April 30, 2020 (when SBA published the IFR). A bank then canceled the unfunded loans due to the $20 million cap by the IFR. Several months later, the eight companies once again applied for the loans with a different bank, which funded the loans. 'When fraudulent applications wrongly drain a program set up to offset economic upheaval, it's a blow to the folks who truly need help. The FBI will continue to work with our partners to identify and investigate anyone who tries to defraud federal government programs in this way.' Said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division Mr. Chambers and the companies cooperated during the investigation, taking Voluntary Disclosure, Cooperation, and Remediation into Account in False Claims Act Matters. Read the full settlement agreement here: Usa v. Herb Chambers - Settlement Agreement by Boston 25 Desk This is a developing story. Check back for updates as more information becomes available. Download the FREE Boston 25 News app for breaking news alerts. Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
Axios
10-03-2025
- Automotive
- Axios
Auto dealer megadeal could become a legal headache
Asbury Auto Group last month agreed to pay $1.34 billion to acquire a New England auto dealership network called Herb Chambers. Why it matters: It's a huge deal by sector standards, but also could exacerbate legal headaches for Herb Chambers, which is being sued by a dealership finance manager for allegedly failing to pay overtime and related wages. Catch up quick: The finance manager sued Herb Chambers nearly four years ago, as part of what is intended to be a class action that could include hundreds of finance managers. In its defense, Herb Chambers has essentially argued that it doesn't really employee finance managers. Instead, it claims that specific dealerships are the finance managers' sole employer, and thus Herb Chambers isn't liable for the overtime (particularly for the broader class). It's a legal strategy that Herb Chambers tried once before, related to a dealership parts adviser, albeit unsuccessfully. Zoom in: Asbury's announcement, however, didn't resort to such hair-splitting. Instead, the publicly traded company said that it had: "[S]igned a definitive agreement to acquire various automotive dealerships owned by The Herb Chambers Companies ... and includes 33 dealerships, 52 franchises, and three collision centers." In other words, Asbury is saying that Herb Chambers owns the dealerships. And thus would seem to employ the people who work at them. What they're saying:"The announcement is relevant legally, beyond the obvious hypocritical part of it," says plaintiff's attorney Robert Richardson, who also acknowledged the philanthropy of Herb Chambers' namesake founder. Georgia-based Asbury, which is publicly traded with a $5 billion market cap, didn't respond to a request for comment. Look ahead: A court will hear the motion for a class action designaton next month. If the plaintiffs are successful, Herb Chambers could be on the hook for more than $13 million — although that's obviously a rounding error on the merger size. It's unclear if Asbury would assume the liability, or if Herb Chambers is holding a possible verdict in escrow. The bottom line: Press releases sometimes disclose more than is intended.
Yahoo
19-02-2025
- Automotive
- Yahoo
Herb Chambers sold for $1.34B to Georgia-based automotive retailer
PROVIDENCE, R.I. (WPRI) — Herb Chambers, a well-known New England automotive retailer, has been sold to a Georgia-based dealership conglomerate for $1.34 billion, 12 News has learned. Documents recently submitted to the U.S. Securities and Exchange Commission reveal that Asbury Automotive Group will acquire Herb Chambers' 33 dealerships, 52 franchises and three collision centers. The sale is expected to be finalized in late spring. Herb Chambers was founded in 1985 and employs more than 2,200 in Massachusetts and Rhode Island alone. 'As I look back on the last 40 years in business, I do so with immense pride, and as I look forward, I will do so with great satisfaction knowing what we built together will be in trusted hands,' Herb Chambers said, adding that Asbury Automotive Group shares their 'customer-focused philosophy which will remain as the foundation from which they move our great company into the future.' Chambers has agreed to become Asbury Automotive Groups special advisor once the sale is finalized and will retain ownership of the Mercedes-Benz of Boston in Somerville. 'Herb is an icon in Boston, and he has built a world class organization, with a strong reputation for serving his guests and being highly engaged in the communities,' Asbury Automotive Group President and CEO David Hult said. '[Herb Chambers] is a respected brand with a rich history and reputation for having a customer and team member-focused culture, aligning directly with Asbury's North Star to become the most guest-centric automotive retailer.' Asbury Automotive Group, a Fortune 500 company that has a workforce of 15,000 employees, was founded in 2002 and is considered one of the largest car retailers in the country. In its 2023 Corporate Responsibility Report, Asbury Automotive Group expanded its footprint that year by purchasing Koons Automotive Companies, which at the time was the 9th largest privately-owned dealership in the country. Asbury Automotive Group's overall goal is to make more than $30 billion in revenue by 2030. Download the free to get breaking news and weather alerts. Watch or with the new . Follow WPRI 12 on , and . Close Thanks for signing up! Watch for us in your inbox. Subscribe Now Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
18-02-2025
- Automotive
- Yahoo
Asbury Automotive Accelerates Expansion With $1.34 Billion Herb Chambers Takeover
Asbury Automotive Group Inc (NYSE:ABG) shares are trading lower on Tuesday. The company inked a deal to acquire The Herb Chambers Companies in a $1.34 billion deal. The transaction covers Herb Chambers' 33 dealerships, 52 franchises, and three collision centers, representing $2.9 billion in 2024 revenue. The transaction, expected to close in the late second quarter of 2025, is subject to customary conditions and will be funded through credit facilities, mortgage proceeds, and cash. Herb Chambers, principal of the Herb Chambers Companies, has agreed to assume the post of Special Advisor to Asbury and will retain ownership of Mercedes-Benz of Boston in Somerville, Massachusetts. David Hult, Asbury's President & CEO, said, 'HCC is a respected brand with a rich history and reputation for having a customer and team member-focused culture, aligning directly with Asbury's North Star to become the most guest-centric automotive retailer.' Last month, Asbury Automotive reported fourth-quarter revenue of $4.5 billion, beating estimates , and adjusted EPS of $7.26, which exceeded expectations, with a strong Parts & Service segment performance offsetting margin pressures. As of December 31, 2024, the company had cash and floorplan offset accounts of $156 million and availability under the used vehicle floorplan line and revolver of $672 million. Investors can gain exposure to the stock via Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ:PSCD) and VanEck ETF Trust VanEck Morningstar SMID Moat ETF (BATS:SMOT). Price Action: ABG shares are down 1.37% at $299.20 at the last check Tuesday. Read Next:Photo courtesy: Shutterstock. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ASBURY AUTOMOTIVE GR (ABG): Free Stock Analysis Report This article Asbury Automotive Accelerates Expansion With $1.34 Billion Herb Chambers Takeover originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
