COVID School Closures Ineffective; Attorney Lisa Bloom Settles PPP Misuse Allegations for $274k

Attorney Lisa Bloom and her husband have reached a settlement to resolve allegations of misusing funds from the COVID-19 Paycheck Protection Program (PPP). The settlement, totaling $274,000, was made with the Department of Justice (DOJ) after accusations of violating the False Claims Act. The DOJ revealed that the couple, along with their law firm, falsely certified information to support a PPP loan forgiveness application. They were found to have used part of the PPP loan to pay ineligible employees or those who did not work for the firm during the loan's covered period.

DOJ Settlement

The DOJ announced the settlement on Thursday, marking a significant development in the case. The Bloom Firm, as part of the agreement, will pay $204,200.34, while Lisa Bloom and Braden Pollock will individually pay $35,384.49 each. Principal Deputy Assistant Attorney General Brian M. Boynton, who heads the DOJ's Civil Division, emphasized the government's commitment to pursuing those who misuse taxpayer-funded programs. The DOJ's pursuit of this case underscores the significance of ensuring the integrity of relief programs designed to aid businesses during the challenging times posed by the pandemic.

The Paycheck Protection Program (PPP)

Enacted in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the PPP aimed to offer vital financial assistance to small businesses grappling with the economic repercussions of the COVID-19 pandemic. The program, which authorized billions of dollars in forgivable loans, sought to help businesses meet their financial obligations, including employee payroll and other essential expenses. However, the alleged misrepresentation and misuse of funds, as in the case of Lisa Bloom and her firm, highlight the challenges of ensuring the transparent and appropriate utilization of such relief initiatives.

Lisa Bloom's Background

Lisa Bloom, recognized for her work in representing women in sexual harassment cases—following in the footsteps of her renowned mother, Gloria Allred—has been involved in high-profile legal matters. Her professional endeavors have included advocating for individuals in cases that have garnered significant public attention. However, the recent settlement concerning the PPP funds has brought forth a different scrutiny, raising questions about adherence to the program's guidelines and the subsequent repercussions of non-compliance.

Striving for Program Integrity

The DOJ's resolution of the allegations against Lisa Bloom and her firm underscores the imperative of upholding the integrity of relief initiatives, particularly those aimed at buttressing the financial resilience of small businesses during extraordinary circumstances. By holding accountable those who subvert the objectives of such programs, the government reinforces the message that the misuse of public funds will not be tolerated.

The settlement with Lisa Bloom and her husband serves as a reminder of the legal and ethical obligations incumbent upon PPP beneficiaries and underscores the government's commitment to ensuring the appropriate use of taxpayer-funded resources. As the business landscape continues to grapple with the enduring effects of the pandemic, the transparent and judicious allocation of financial support remains paramount.