Strand Bookstore Reaches $1.5 Million Settlement Over Ineligible COVID-19 PPP Loan
The Strand bookstore in New York City has agreed to pay approximately $1.48 million to settle a civil case involving an ineligible Paycheck Protection Program (PPP) loan. The U.S. Attorney's Office for the District of Columbia alleged that the store improperly received a second-draw loan in February 2021, despite being owned by Nancy Bass Wyden, the spouse of U.S. Senator Ron Wyden. The settlement follows allegations that the loan application contained false certifications regarding whether a member of Congress or their spouse held a controlling interest in the business. While the bookstore maintains the error was unintentional and they were unaware of the specific eligibility restrictions, the settlement resolves claims brought under the False Claims Act via a whistleblower lawsuit.
Topics: civil settlement government investigation PPP loan fraud