Lisa Bloom and Husband Settle Allegations Over Misuse of COVID Relief Funds
California attorney Lisa Bloom and her husband have reached a settlement concerning serious allegations involving the misuse of COVID-19 Paycheck Protection Program (PPP) funds.
The Bloom Firm, situated in California, along with Lisa Bloom and Braden Pollock, who are part of the firm’s top management, will pay a combined total of $274,000. This payment settles claims of violations under the False Claims Act for allegedly submitting misleading information related to a PPP loan forgiveness application, as detailed in a release from the Department of Justice (DOJ) on Thursday.
Understanding the Allegations Against The Bloom Firm
The DOJ contends that Lisa Bloom misused her law firm’s standing to acquire forgiveness on the initial PPP loan by inaccurately certifying that the funds were spent on eligible payroll expenses. The investigation revealed that a portion of the loan was directed toward employees who either did not qualify for the funds or were not actively working during the loan’s covered period.
(David Dee Delgado/Getty Images)
According to the settlement, the Bloom Firm itself is obligated to pay $204,200.34, while both Bloom and Pollock will contribute $35,384.49 each. This resolution raises questions about ethical responsibilities among legal practitioners, especially during times of economic need.
The Broader Implications of the PPP Program
“PPP loans were crafted to provide vital assistance to small businesses,” remarked Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s Civil Division. “The department is devoted to identifying and prosecuting those who exploit this taxpayer-funded program.” It’s essential to reflect on the intent behind these loans, which were established in March 2020 as part of the CARES Act to support those grappling with financial instability during the pandemic.
With billions allocated for forgivable loans, the program aimed to alleviate the burdens faced by local businesses, like family-run restaurants or personal service shops, struggling to keep employees on payroll amidst the chaos of COVID-19. When individuals, such as Bloom, bend the rules, it not only undermines the program’s integrity but also the trust placed in the legal system.
(Frederick M. Brown/Getty Images)
By December 2020, Congress had authorized additional PPP funding, granting a “second draw” of loans for eligible borrowers starting January 2021. The application process mandated that all borrowers certify the accuracy of their submitted information, including assurances that they utilized the funds strictly for qualifying expenses like payroll. Yet, in light of such high-profile cases, the integrity of this certification process deserves scrutiny.
(Eduardo Munoz Alvarez/Getty Images)
Lisa Bloom, the child of renowned attorney Gloria Allred, has a history of representing women in cases of sexual harassment. This new chapter not only casts a shadow over her professional image but also offers an opportunity for introspection about the responsibilities of high-profile lawyers in these tumultuous times. She previously worked with several women contemplating accusations against Donald Trump, adding complexity to her public persona.
As this story unfolds, it serves as a reminder of the importance of accountability within all levels of business and law. The echoes of the pandemic still resonate in our communities; hence, every dollar intended for relief must be stewarded with integrity. The Bloom case is a poignant example of both the challenges and the ethical dilemmas faced during these unprecedented times.
