It has been a very busy week for the DOJ tackling COVID-19 fraud. On August 15, DOJ announced that The Bloom Firm, a California-based law firm, along with senior management members Lisa Bloom and Braden Pollock, reached a settlement over government allegations of violating the False Claims Act by misusing Paycheck Protection Program (PPP) loan funds.

The PPP was established in March 2020 under the CARES Act to offer temporary financial relief to small businesses impacted by the COVID-19 pandemic. These loans were intended to cover payroll and other essential business expenses, but borrowers had to certify the accuracy of their applications.

According to the government, The Bloom Firm, under the direction of Bloom and Pollock, falsely certified that its PPP loan was used exclusively for eligible payroll expenses. However, the firm allegedly paid some ineligible employees or those who did not even work for the firm during the loan’s covered period. As a result, the firm will pay $204,200.34, while Bloom and Pollock will each pay $35,384.49.

“PPP loans were intended to provide critical relief to small businesses,” stated Principal Deputy Assistant Attorney General Brian M. Boynton. “The department is committed to pursuing those who misused this taxpayer-funded program.”

U.S. Attorney Martin Estrada discussed the importance of legal compliance, especially in government programs designed to support those affected by the pandemic, stating, “This settlement reaffirms my office’s commitment to affirm and uphold the integrity of pandemic-assistance programs.”

This is just the latest in a stream of DOJ enforcement actions involving PPP fraud, which remains a high priority for DOJ fraud enforcement.  If you have information about COVID-19 fraud and would like to speak to a member of the Constantine Cannon whistleblower lawyer team, please Contact us for a confidential consultation. Your information could be crucial to the next big settlement!

Read California Law Firm Settle False Claims Act Allegations Regarding Misuse of PPP Loan at constantinecannon.com