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Case 1:22-cv-00137-DLH-CRH Document 1 Filed 08/23/22 Page 1 of 5
David Abrams, Attorney at Law
P.O. Box 3353 Church Street Station
New York, New York 10008
United States District Court TO BE FILED UNDER SEAL
District of North Dakota
___________________________________
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United States of America ex rel. )
TZAC, Inc., )
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Plaintiff-Relator, )
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- against - ) Index No.:
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Education for Just Peace ) COMPLAINT
in Middle East a/k/a United States )
Campaign for Palestinian Rights )
)
)
Defendant. )
____________________________________)
Case 1:22-cv-00137-DLH-CRH Document 1 Filed 08/23/22 Page 2 of 5
Plaintiff-Relator, complaining of the Defendant by its attorney, David Abrams,
Attorney at Law, respectfully sets forth and alleges as follows:
I. Nature of the Case
1. This is a false claims act claim. The Qui Tam Plaintiff and Relator, TZAC, Inc.
("The Zionist Advocacy Center" or "Relator"), alleges that the Defendant obtained
disaster relief by fraudulently representing the nature of its operations. More specifically,
the Defendant is primarily an advocacy organization and therefore categorically ineligible
for second-round PPP disaster relief funding.
II. Parties
2. Defendant Education for Just Peace in Middle East a/k/a United States Campaign
for Palestinian Rights ("USCPR" or "Defendant") is a not-for-profit corporation. As of
June 2020, Defendant formally registered to do business in North Dakota and started
filing annual reports there. A copy of USCPR's registration with the State of North
Dakota is attached hereto and incorporated herein by reference.
3. On its web site, USCPR describes its activities as follows:
USCPR is a political home for all who believe that freedom for the Palestinian
people is an integral part of achieving our collective liberation. We provide
resources and strategic support to the U.S.-based Palestine solidarity movement,
channeling grassroots power into positive change in U.S. policy and public
opinion. We work with local organizers and activists, policymakers, movement
leaders, media, and advocacy organizations to advance a rights-based,
accountability and justice-oriented framework from the U.S. to Palestine.
4. Indeed, according to Ahmad Abuznaid, the Executive Director of USCPR, the
"stated goal" of the organization is to "end the military funding to the State of Israel from
the United States."
5. Relator TZAC, Inc. ("The Zionist Advocacy Center" or "Relator" or "Plaintiff") is
a New York business corporation with a principal place of business in the State of New
York, County of Delaware.
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Case 1:22-cv-00137-DLH-CRH Document 1 Filed 08/23/22 Page 3 of 5
III. Compliance With Requirements of Suit
6. This matter has been or will be filed under seal pursuant to 31 U.S.C. Section
3730(b); at or about the same time, a copy of the Complaint and Relator's disclosure of
evidence were or will be served on the Department of Justice and the United States
Attorney for the District in which this matter is filed.
7. Relator will not serve the Complaint or any other papers in this matter until and
unless it becomes unsealed. Thus, if the Complaint is served on the Defendant, it means
that the matter has been duly unsealed.
IV. Jurisdiction and Venue
8. This Court has jurisdiction pursuant to 31 U.S.C. Section 3732(a) which provides
that this type of action may be brought in any district where the Defendant resides or
transacts business. In this case, the Defendant is transacting business in North Dakota as
set forth above. To be clear, Defendant's activities in North Dakota are not the basis of
personal jurisdiction. Since the False Claims Act is a nationwide service of process
statute, it is the Defendant's contacts with the United States as a whole which are the
basis for personal jurisdiction. North Dakota is simply the chosen venue.
V. The Fraudulent Scheme
9. The Defendant received Second Round PPP Disaster Relief as follows:
Date Amount Loan Number Forgiven
April 29, 2021 $155,052 4450228907 May 16, 2022
10. In order to be eligible for this relief the Defendant had to certify, among other
things, as follows:
The Applicant is not a business concern or entity 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.
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Case 1:22-cv-00137-DLH-CRH Document 1 Filed 08/23/22 Page 4 of 5
11. At all times relevant to this matter the foregoing certification was completely false
in that the Defendant was clearly and primarily engaged in the type of political activities
which render persons ineligible for second-round PPP disaster relief.
12. As a result of its fraudulent certification, USCPR received some $155,052 in
funds of the United States which it would not otherwise have received.
VI. Cause of Action
13. The False Claims Act imposes liability on a person or entity who " knowingly
makes, uses, or causes to be made or used, a false record or statement material to a false
or fraudulent claim" 31 U.S.C. Section 3729(a)(1)(B)
14. The Courts have held that this can include false statements regarding eligibility to
participate in a program. See United States ex rel. Kirk v. Schindler Elevator Corp., 601
F.3d 94, 116 (2d Cir. 2010), rev'd on other grounds, 131 S.Ct. 1885 (2011) ("[C]laims
may be false even though the services are provided as claimed if, for example, the
claimant is ineligible to participate in the program.")
15. Thus, the certifications of USCPR violated the False Claims Act because they
were false and required for eligibility for Second Round PPP monies.
VII. Relief Sought
16. On behalf of the government, Relator is seeking judgment for the triple damages
and civil penalties set forth in 31 U.S.C. Section 3729.
17. USCPR received some $155,052 in Second Round PPP Relief. These funds
would have been received as a result of the fraudulent certification described above.
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Case 1:22-cv-00137-DLH-CRH Document 1 Filed 08/23/22 Page 5 of 5
18. Accordingly, Relator seeks judgment in the amount of $465,156 against USCPR
and in favor of the United States, together with costs, interest, civil penalties, an
appropriate qui tam award, and such other and further relief as the Court deems just.
Respectfully submitted,
___________________________
David Abrams, Attorney at Law
Attorney for Relator
The Zionist Advocacy Center
P.O. Box 3353 Church Street Station
New York, NY 10008
Tel. 212-897-5821
Fax 212-897-5811
Dated: New York, NY
August 23, 2022
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