Strand Bookstore to Repay $1.48 Million Over PPP Loan
The Justice Department said the settlement resolves claims that the bookstore improperly received a second Paycheck Protection Program loan. Strand applied for $932,350 in February 2021, under regulations that made firms ineligible for another loan when a lawmaker or that person's spouse held a controlling stake. The department said the application included materially false certifications about that restriction. The settlement does not determine liability.
Nancy Bass Wyden, who owns the store and has been married to the Oregon senator for more than 20 years, said the application error was unintentional. She said the bookstore’s accountant and the bank handling the loan were unaware of the rule change between the program’s first and second rounds, and that the funds were returned once the issue came to light. The company said it regretted the oversight.
The PPP was created to help businesses retain employees during the pandemic. Congress later authorized additional loans but added the restriction on second-draw applications involving a member of Congress or spouse with a controlling interest.
The Strand said in October 2020 that its revenue had fallen 70% and urged supporters to buy books and gift cards. The investigation followed whistleblower claims and involved the Small Business Administration. The settlement is the second recovery announced by the U.S. attorney’s Fraud and Asset Recovery Division since its creation in September.
Strand Settlement Raises Questions About DOJ’s Focus on Wyden
The Justice Department is pursuing a high-profile settlement involving the wife of a Democratic senator, even as the bookstore says its loan application error was an honest mistake during a public health emergency. Strand Book Store agreed on November 3 to pay $1,482,560 to resolve an investigation into a second-draw Paycheck Protection Program loan.
The store applied for $932,350 in February 2021. The department says the application’s certifications were materially false because rules barred a second loan when a member of Congress or spouse held a controlling interest. The settlement does not determine liability.
Nancy Bass Wyden said the store’s accountant and the bank administering the loan did not know about the restriction, which was introduced between rounds of the program. She said the funds were returned after the problem was discovered and called the error unintentional.
The pandemic-era program was intended to help businesses keep employees on payroll. Strand said its revenue had dropped 70% in 2020 and appealed to customers for support. The investigation followed whistleblower claims and involved the Small Business Administration. The case puts the enforcement of a complex rule against a family tied to a prominent political opponent of President Trump under scrutiny.
Strand Must Repay Taxpayer Relief After Violating PPP Rules
A rule designed to keep taxpayer-backed pandemic aid away from congressional insiders applied to Strand Book Store, and the Justice Department has secured a $1,482,560 settlement over the store’s second-draw loan. The New York business applied for $932,350 in February 2021, when the program barred second loans for businesses controlled by a member of Congress or their spouse.
The department said the application contained materially false certifications. Nancy Bass Wyden, the store’s owner and wife of Sen. Ron Wyden, said the mistake was unintentional and blamed unfamiliarity with a rule change by the store’s accountant and the bank. She said the funds were returned after the issue came to light. The settlement does not establish liability.
The Paycheck Protection Program was meant to help employers keep workers during the pandemic, but Congress imposed a new restriction on second-round lending. That limit matters: public relief should follow the eligibility rules, including when an applicant is linked to a powerful elected official.
Strand said its revenue fell 70% in 2020 and sought support from customers. The investigation arose from whistleblower claims, with help from the Small Business Administration. The Justice Department said the settlement is the second recovery by its Fraud and Asset Recovery Division since the unit was created in September.
Reported by Raw Story, Townhall, New York Post, Gothamist, Fox Business.
