Editor's Note: This article has been updated to clarify that the settlement resolved allegations without any admission of liability or determination of wrongdoing.
Ronald Hoplamazian, a Pennsylvania businessman who runs consulting firm Eclipse Capital Partners, has agreed to pay $3.2 million to settle allegations concerning the use of Economic Injury Disaster Loan funds. The settlement resolves allegations that he violated the False Claims Act, as detailed in the announcement made by U.S. Attorney Jacqueline C. Romero, per the U.S. Attorney's Office.
According to the government's allegations, Hoplamazian's company received an EIDL of $1.9 million, which he represented would be used as working capital to mitigate COVID-19 economic damages. The government alleged that he instead transferred most of those funds into a personal investment account, which would be inconsistent with the intended purpose of the loan program.
U.S. Attorney Romero stated: "Hoplamazian instead allegedly used the EIDL proceeds for an entirely different purpose — to make personal investments — a purpose he knew to be inconsistent with the rules of the EIDL program," as cited by the U.S. Attorney's Office. The DOJ press release explicitly notes that "the settled civil claims are allegations only" and "there has been no determination of civil liability."
