Calabasas-based law firm The Bloom Firm and its senior managers, Lisa Bloom and Braden Pollock, have agreed to a substantial $274,000 settlement over allegedly exploiting the Paycheck Protection Program (PPP), a government aid initiative designed to support small businesses during the COVID-19 pandemic downturn.
According to the U.S. Department of Justice, the firm, led by Bloom and Pollock, apparently misreported their use of the PPP loan funds, certifying against the truth that these were spent on legitimate payroll expenses, with some funds allegedly going to ineligible employees or for non-existent work during the covered period of the loan, which follows the CARES Act of March 2020 and its second draw approval in December 2020, part of the trillions aimed at mitigating economic hardships caused by the global health crisis.
"Attorneys have a duty to follow the law to the letter – especially when it comes to government programs aiding individuals and businesses impacted by COVID-19," U.S. Attorney Martin Estrada for the Central District of California commented on the settlement in a statement. Co-conspirators in this case, The Bloom Firm will pay up to $204,200.34, while Bloom and Pollock are each tagged for $35,384.49 in personal remuneration.
This case originated under the qui tam provision of the False Claims Act, which permits whistleblowers to sue on behalf of the U.S., and was filed by Liberty Law Office, Inc., they stand to gain approximately $44,000 for their role in sparking the litigation. The coordinated investigation and agreement involved the Justice Department's Civil Division, the U.S. Attorney’s Office for the Central District of California, and the SBA's legal and inspector general teams, with Assistant United States Attorney Aaron Kollitz and Trial Attorney F. Elias Boujaoude spearheading the effort.
