California Law Firm and Executives Settle Alleged False Claims Act Over Misuse of PPP Loan Funds

California Law Firm and Executives Settle Alleged False Claims Act Over Misuse of PPP Loan Funds

[ad_1]

The Bloom Firm, a California-based law firm, and principals Lisa Bloom and Braden Pollock, have agreed to pay a total of $274,000 to settle allegations that they violated the False Claims Act by providing false information in support of the Paycheck Protection Program. (PPP) loan forgiveness application.

The PPP was established in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to small businesses struggling due to the COVID-19 pandemic. These loans, meant to cover salaries and other business expenses, were forgivable if the funds were used properly. When applying for forgiveness, borrowers had to confirm that the information they provided was true and that the money was being used for proper expenses.

According to the US Department of Justice, The Bloom Firm, under the supervision of Bloom and Pollock, falsely certified that it used its first PPP loan for eligible settlement costs. The government alleges that the company is using part of the PPP loan to pay workers who were not eligible for PPP funds or who did not work for the company at the time of the loan. As part of the settlement, the Bloom Firm will pay $204,200.34, while Bloom and Pollock will each pay $35,384.49.

“PPP loans were intended to provide significant relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Labor Division. “The department is committed to following those who misuse this tax-payer funded program.”

U.S. Attorney Martin Estrada for the Central District of California added, “Lawyers have a duty to follow the law to the letter – especially when it comes to government programs that help people and businesses affected by COVID-19.”

The settlement also resolved claims brought under the qui tam, or whistleblower, provisions of the False Claims Act. This provision allows private entities to sue the United States for false claims and share in a portion of the government’s restitution. Liberty Law Office Inc., which filed the lawsuit, will receive about $44,000 from the settlement.

The settlement was reached through a joint effort between the Commercial Branch of the Civil Division, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the Small Business Administration (SBA) and Office of Inspector General. .




[ad_2]

Source link

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *