California attorney Lisa Bloom and her husband have agreed to settle allegations arising from the misuse of COVID-19 Paycheck Protection Program (PPP) funds.
California law firm Bloom Law Firm and two of the firm’s senior executives, Lisa Bloom and Braden Pollock, have agreed to pay a total of $274,000 to resolve allegations that they knowingly provided false information in support of the firm’s Paycheck Protection Program (PPP) loan forgiveness application and violated the False Claims Act, the Department of Justice (DOJ) announced in a news release Thursday.
Officials said Bloom allegedly used his law firm to obtain forgiveness for the firm’s initial PPP loan by falsely certifying that the firm used PPP loan funds for eligible payroll expenses.
DOJ found that Bloom Farm used a portion of its PPP loan to pay multiple employees who were not eligible to receive the funds or who did not work for the company during the loan’s covered period.
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California attorney Lisa Bloom has agreed to settle allegations arising from the misuse of Paycheck Protection Program funds. (David Dee Delgado/Getty Images)
As part of the settlement, authorities announced that Bloom Law Firm will pay $204,200.34 and that Mr. Bloom and Mr. Pollock will each pay $35,384.49.
“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our authorities are committed to pursuing those who abuse this taxpayer-funded program.”
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide emergency financial assistance to millions of Americans suffering economic hardship due to the COVID-19 pandemic.
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The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and meet other business expenses.
Attorneys Lisa Bloom, left, and Janice Dickinson speak during a press conference at Bloom’s law firm in Woodland Hills, California, to announce the settlement of a 2019 defamation lawsuit against Bill Cosby. (Frederick M. Brown/Getty Images)
In December 2020, Congress authorized funding for a “second draw” of PPP loan funds available to borrowers beginning in January 2021.
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Officials said that when applying for PPP loan forgiveness, borrowers will need to certify the truth and accuracy of all information provided in their application, including that they used PPP loan funds for eligible expenses such as payroll.
Attorney Lisa Bloom spoke to media at a press conference in New York City on February 5, 2020. (Eduardo Muñoz Alvarez/Getty Images)
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Bloom, the daughter of prominent lawyer Gloria Allred and who, like her mother, specializes in defending women in sexual harassment cases, worked for four women who had considered suing Donald Trump for wrongdoing: two went public and two declined.
