Strand Book Store to Pay $1.48 Million Over PPP Loan: Owner Is a U.S. Senator's Wife
The U.S. Attorney's Office for the District of Columbia announced on November 3 that Strand Book Store, Inc., the New York City bookstore, has agreed to pay $1,482,560 to resolve allegations that it violated the False Claims Act by improperly applying for and receiving a second-draw loan under the Paycheck Protection Program (PPP) for which it was not eligible.
Prosecutors said Strand was ineligible because its controlling owner was Nancy Bass Wyden, the wife of U.S. Senator Ron Wyden. Federal law bars businesses controlled by a member of Congress or their spouse from receiving second-draw PPP loans. Strand applied in February 2021 and received $932,350 in second-draw funds. The government alleged that Ms. Wyden's certification that no spouse of a member of Congress held a controlling interest was knowingly and materially false.
U.S. Attorney Pirro said the Paycheck Protection Program was created to save American jobs, not to enrich those who are not eligible for taxpayer-funded relief, especially the wife of a U.S. Senator.
The settlement resolves claims brought under the qui tam whistleblower provisions of the False Claims Act. The complaint was filed by corporate relator Blockquote Inc., captioned U.S. ex rel. Blockquote Inc. v. Strand Book Store, Inc., Civ. No. 25-3609 (D.D.C.). Blockquote will receive approximately $148,256 in connection with the settlement. The investigation was conducted by Assistant U.S. Attorney Sean M. Tepe with support from Christopher J. McClintock of the SBA Office of General Counsel.
The Justice Department noted that the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
Source: U.S. Attorney's Office for the District of Columbia
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