The United States Attorney’s Office for the District of Columbia says it has reached civil settlement agreements with two non-profit organisations to resolve allegations that the organisations violated the False Claims Act when they applied for and received loans under the Paycheck Protection Programme.
Jewish War Veterans of the United States of America, Inc is a Section 501(c)(4) non-profit organisation 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) organisations, 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.
Centre for International Policy is a Section 501(c)(3) non-profit organisation described as a centre for research and advocacy on U.S. foreign policy. In early 2021, the centre applied for a second-draw PPP loan in the amount of $192,447 and subsequently applied for and received full forgiveness of that loan.
Congress, however, had prohibited second-draw PPP loans to entities primarily engaged in political or lobbying activities, including those entities organised for research or for public policy advocacy, political strategy, or publicly referring to themselves as think tanks.
After an analysis of the centre’s ability to pay pursuant to a settlement, the centre 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.