FalseClaimsAct News & Analysis

Strand Bookstore to Pay $1.48M Over Ineligible Covid PPP Loan

The Strand bookstore, owned by the wife of Oregon Senator Ron Wyden, agreed to pay $1,482,560 in a civil settlement for accepting a Paycheck Protection Program (PPP) loan it was not eligible for. The loan amounted to $932,350 and was applied for in February 2021. The store owner, Nancy Bass Wyden, certified falsely on the application that the spouse of a member of Congress did not hold a controlling interest in the business, contrary to PPP rules. The U.S. Attorney's Office in Washington, D.C., charged that the certification was knowingly false. The settlement resolved claims under the False Claims Act and followed a qui tam lawsuit filed by a whistleblower entity, Blockquote Inc. The PPP loan program, authorized by Congress to protect American jobs during the Covid pandemic, explicitly barred businesses controlled by members of Congress or their spouses from receiving second draw loans. This case highlights government enforcement actions to recover funds distributed improperly during the PPP program. For investors and taxpayers, it underscores the increased scrutiny and potential financial consequences for organizations and individuals failing to meet PPP eligibility requirements, as shown by the $1.48 million settlement paid by The Strand bookstore.