The Strand bookstore, a well-known establishment in New York City, has settled for $1,482,560 after it was found to have inappropriately applied for a $932,350 loan from the Paycheck Protection Program (PPP). The U.S.
Attorney's Office stated that the store's owner, Nancy Bass Wyden, falsely certified that no member of Congress or their spouse held a controlling interest in the business, which disqualified it from receiving the funds. The loan application was submitted in February 2021, after Congress had enacted restrictions on such loans for businesses owned by relatives of lawmakers.
The Strand claimed the mistake was unintentional and attributed it to a lack of awareness regarding the updated regulations at the time of application. The settlement resolves claims made under a qui tam lawsuit filed by Blockquote Inc., which will receive approximately $148,256 from the settlement.
This incident underscores the importance of compliance with government loan regulations, particularly for businesses with political connections, and may influence how similar cases are handled in the future