California’s The Bloom Firm PC and members of its senior management have agreed to pay $274,000 to settle allegations that they violated the False Claims Act by submitting false information to the government under the Paycheck Protection Program (PPP), according to a report by Bloomberg Law.
The Department of Justice (DOJ) alleged that The Bloom Firm falsely certified that it used PPP loan funds for eligible payroll expenses, thus improperly seeking and obtaining forgiveness for its first draw PPP loan. The PPP, which is part of the CARES Act enacted in March 2020, was designed to provide emergency loans to businesses affected by the COVID-19 pandemic.
- Law firm accused of using funds on ineligible employees
- Firm disputes US interpretation, admits no wrongdoing
The firm, while agreeing to the settlement, has not admitted to any wrongdoing. The settlement highlights ongoing efforts by the DOJ to ensure compliance with the rules governing emergency financial assistance programs.