Strand bookstore settles $1.48 million loan fraud case
Strand bookstore settles claims of improperly obtaining $932,350 in Covid relief funds.
(Photo via CNBC)
The Strand Book Store, Inc. has agreed to pay $1,482,560 to resolve allegations that it violated the False Claims Act by improperly obtaining a second draw Paycheck Protection Program loan. The settlement, announced by the U.S. Attorney’s Office for the District of Columbia on Nov. 3, 2026, concludes a lawsuit initiated by a whistleblower.
In February 2021, the New York City bookstore received $932,350 in second draw PPP funds. Federal investigators alleged that the application was ineligible because the bookstore was controlled by Nancy Bass Wyden, the wife of U.S. Senator Ron Wyden. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act explicitly prohibited businesses from receiving these funds if a member of Congress or their spouse held a controlling interest.
The government contended that the certification provided by Nancy Bass Wyden during the application process, which stated that no spouse of a member of Congress held a controlling interest in the applicant, was knowingly and materially false. The investigation into the matter was led by Assistant U.S. Attorney Sean M. Tepe.
The settlement resolves a qui tam lawsuit, U.S. ex rel. Blockquote Inc. v. Strand Book Store, Inc., filed in the U.S. District Court for the District of Columbia. As part of the resolution, the relator, Blockquote Inc., will receive approximately $148,256 of the total settlement amount.
U.S.