New York City's iconic Strand bookstore has agreed to pay $1.48 million to settle claims that it received COVID relief funds it wasn't eligible for.
According to the Department of Justice, the bookstore received a second Paycheck Protection Program (PPP) loan for $932,350 in 2021.
The controlling owner of Strand at the time was Nancy Bass Wyden, the wife of U.S. Senator Ron Wyden (D-Oregon). Federal law prohibited businesses controlled by members of Congress or their spouses from receiving second-draw PPP funds.
The DOJ alleged that Wyden knew when she filled out the loan application that her spouse would make the business ineligible, but completed false certifications for it.
The bookstore's accountant claimed it didn't know that Congress had added the restriction between its first and second PPP loans. It also claimed it returned the funds as soon as it realized the mistake, according to CNN.
A number of Republican elected officials who received PPP loans during the pandemic had them forgiven, according to CNN, which cited records.
The settlement stems from a whistleblower lawsuit filed under the False Claims Act by Blockquote Inc.. It will receive about $148,256 from the recovery, according to the DOJ.
