Education for Just Peace in the Middle East d/b/a US Campaign for Palestinian Rights Settles PPP Loan Case for $353,000

Summary

This is an OIG news release, published on November 13, 2025, stating that United States Attorney Nicholas W. Chase announced a settlement agreement with Education for Just Peace in the Middle East doing business as US Campaign for Palestinian Rights (EfJP), under which EfJP paid the United States $353,000. The release says EfJP received First Draw and Second Draw loans under the Paycheck Protection Program with a value of $308,905.28, and obtained forgiveness. The settlement resolved a whistleblower lawsuit brought by TZAC, Inc. under the False Claims Act, and TZAC's allegations included the claim that EfJP was ineligible for the Second Draw loan. The release states that the claims are allegations only, that there has been no determination of liability, and that EfJP denies any wrongdoing.

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OIG news release

Education for Just Peace in the Middle East d/b/a US Campaign for Palestinian Rights Settles PPP Loan Case for $353,000

Published on November 13, 2025 by Office of Inspector General

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United States Attorney Nicholas W. Chase announced the United States entered into a settlement agreement with Education for Just Peace in the Middle East doing business as US Campaign for Palestinian Rights (“EfJP”), a Washington, DC non-profit participating in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). EfJP paid the United States $353,000 to settle the case.

In March 2020, Congress created the CARES Act to provide emergency financial support to Americans suffering economic hardship due to the circumstances surrounding the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable PPP loans—known as First Draw and Second Draw loans—to small businesses, including certain non-profit organizations, struggling to pay employees and other business expenses. EfJP applied for, received, and obtained forgiveness for First Draw and Second Draw loans with a value of $308,905.28.

To receive a First Draw loan, an applicant had to certify eligibility for a loan under the rules in effect at the time. Among the rules in effect at the time of EfJP’s First Draw application was 13 CFR § 120.110(r) which provides that, “Businesses primarily engaged in political or lobbying activities” are ineligible for SBA loans. To apply for a Second Draw loan, an applicant had to certify eligibility, including that it was not “primarily engaged in political or lobbying activities, including any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public documents.” 15 U.S.C. § 636(a)(37)(A)(iv)(III)(bb).

Under the settlement agreement, EfJP paid $353,000 to the United States to resolve a whistleblower lawsuit brought against EfJP by TZAC, Inc., a New York non-profit, pursuant to the qui tam provisions of the False Claims Act. TZAC’s allegations included the claim that EfJP was ineligible to participate in the Second Draw loan. As a result of the investigation conducted by the United States, the parties reached a settlement whereby EfJP paid the United States an amount sufficient to (1) fully reimburse SBA for the principal, interest, and lender processing fees associated with the First Draw and Second Draw loans; (2) pay TZAC, Inc. its share of the recovery consistent with the False Claims Act; and, (3) cover certain expenses associated with the resolution of the case. The claims resolved by the civil settlement are allegations only. There has been no determination of liability in the civil case and EfJP denies any wrongdoing.

The case is United States of America ex rel. TZAC, Inc. v. Education for Just Peace in [the] Middle East a/k/a United States Campaign for Palestinian Rights, U.S. District Court, District of North Dakota Case No. 1:22-cv-00137-DLH-CRH. The United States is represented by Assistant United States Attorneys James Patrick Thomas and Michael D. Schoepf of the District of North Dakota. US Attorney Chase commended SBA Office of Inspector General Special Agent Sandra E. Mazzoni and SBA Office of General Counsel Trial Attorney Kandace Zelaya for their assistance in the investigation and settlement of the matter. “Investigations like this one reflect collaboration of the Small Business Administration, including SBA’s Office of General Counsel and Office of Inspector General, and the U.S. Attorney’s Office. When whistleblowers uncover potentially fraudulent conduct, we work to recover SBA funds improperly obtained,” said SBA General Counsel Wendell Davis.

For more information about the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (“NCDF”) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .

Related programs: Pandemic Oversight, PPP

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