Strand Book Store, Inc. to Pay Nearly $1.5 Million for Improper Receipt of Paycheck Protection Program Loan

WASHINGTON - The United States Attorney for the District of Columbia announced today that Strand Book Store, Inc. has agreed to pay $1,482,560 because the New York City bookstore 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. Strand was ineligible because Senator Ron Wyden's wife was the owner.

"The Paycheck Protection Program was created to save American jobs, not to enrich those who aren't eligible for taxpayer-funded relief, especially the wife of a U.S. Senator," said U.S. Attorney Pirro. "Strand Book Store, owned by Nancy Bass Wyden, wife of U.S. Senator Ron Wyden, received $932,350 in second draw PPP funds despite a federal law barring businesses controlled by a member of Congress or their spouse from receiving those loans. Our Fraud and Asset Recovery Division will expose this abuse, pursue those who exploit taxpayer dollars, and hold them accountable. No one gets a pass when it comes to defrauding the American taxpayer."

When Congress enacted the Coronavirus, Aid, Relief, and Economic Security (CARES) Act in March 2020, it authorized forgivable PPP loans to eligible small businesses and nonprofit organizations for job retention and certain other expenses. The PPP loan program was administered by the Small Business Administration. In the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted in December 2020, Congress provided additional funding for PPP loans and allowed eligible entities to apply for a "second draw" of PPP funding. The Economic Aid Act included a prohibition against businesses obtaining second draw PPP funds if a member of Congress or their spouse directly or indirectly held a controlling interest in the PPP loan applicant.

In February 2021, Strand applied for a second draw PPP loan in the amount of $932,350. At the time, the controlling owner of Strand was Nancy Bass Wyden, the wife of U.S. Senator Ron Wyden. On behalf of Strand, Ms. Wyden made a number of certifications as part of the loan application, including that the spouse of a Member of Congress does not directly or indirectly hold a controlling interest in the applicant. Ms. Wyden's certification was knowingly and materially false and Strand was not eligible for the second draw loan it received.

The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. The qui tam complaint was filed by a corporate Relator Blockquote Inc. and is captioned U.S. ex rel. Blockquote Inc. v. Strand Book Store, Inc., Civ. No. 25-3609 (D.D.C.). Blockquote Inc. will receive a total share of approximately $148,256 in connection with the settlement.

The civil settlement resulted from an investigation by Assistant United States Attorney Sean M. Tepe with the support of attorney Christopher J. McClintock of SBA's Office of the General Counsel. This is the second recovery on behalf of the United States since U.S. Attorney Pirro announced the creation of the Fraud and Asset Recovery Division, headed by Assistant U.S. Attorney Dan Schiffer.

Tips and complaint regarding potential fraud affecting COVID-19 government relief programs can be reported by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or by submitting a NCDF Web Complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

##

25cv3609

Follow us on XLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link., InstagramLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link., and YouTubeLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link.

or at https://www.justice.gov/usao-dc