Two Non-Profits Agree to Pay Over $450,000 to Resolve False Claims Act Allegations Involving Paycheck Protection Program Loans

Summary

The U.S. Attorney's Office for the District of Columbia settled False Claims Act allegations with two non-profits that took Paycheck Protection Program loans they were not eligible for. Jewish War Veterans of the United States of America, Inc., a Section 501(c)(4) organization, received a first draw PPP loan of $125,654 in 2020 and had it forgiven, though such organizations were never eligible; it agreed to pay $210,000. The Center for International Policy, a Section 501(c)(3) center for research and advocacy on U.S. foreign policy, received complete forgiveness of a $192,447 second draw loan sought in early 2021, although Congress had barred second draw loans to entities organized for research or public policy advocacy. The Center agreed to pay $243,571.25, plus interest. The claims are allegations only, and there has been no determination of liability.

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WASHINGTON – The United States Attorney’s Office for the District of Columbia announced today that it has reached civil settlement agreements with two non-profit organizations to resolve allegations that the organizations violated the False Claims Act when they applied for and received loans under the Paycheck Protection Program (PPP). Jewish War Veterans of the United States of America, Inc. (the JWV) is a Section 501(c)(4) non-profit organization that supports Jewish uniformed service members and veterans in the United States. In 2020, JWV applied for and received a first draw PPP loan in the amount of $125,654 and later sought and received forgiveness for that loan. Section 501(c)(4) organizations, however, were never eligible for PPP loans. JWV has agreed to pay $210,000 to resolve allegations that it violated the False Claims Act by obtaining a PPP loan for which it was not eligible. Center for International Policy (the Center) is a Section 501(c)(3) non-profit organization described as a center for research and advocacy on U.S. foreign policy. In early 2021, the Center applied for a second draw PPP loan in the amount of $192,447 and subsequently applied for and received complete forgiveness of that loan. Congress, however, had prohibited second draw PPP loans to entities primarily engaged in political or lobbying activities, including those entities organized for research or for engaging in public policy advocacy or political strategy or publicly referring to themselves as think tanks. After an analysis of the Center’s ability to pay pursuant to a settlement, the Center agreed to pay $243,571.25, plus interest, to resolve allegations that it violated the False Claims Act by obtaining a PPP loan for which it was not eligible. The civil settlements resulted from investigations by Assistant United States Attorney Sean M. Tepe and Auditor Timothy C. Hurley. The United States Attorney further wishes to commend attorneys Caitlin J. Kelly and Kandace Zelaya of the U.S. Small Business Administration Office of the General Counsel for their assistance in the investigations. Tips and complaints regarding potential fraud affecting COVID-19 government relief programs can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or by submitting a NCDF Web Complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. The claims resolved by the civil settlements are allegations only, and there has been no determination of liability.

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