Two Non-Profits Pay Over $450,000 to Settle False Claims Act Violations for Ineligible PPP Loans

Two non-profit organizations have agreed to pay the federal government a combined total of more than $450,000 to resolve allegations that they obtained Paycheck Protection Program (PPP) loans for which they were never eligible. The settlements, announced by the U.S. Attorney’s Office for the District of Columbia, represent the latest enforcement actions under the False Claims Act aimed at recovering pandemic relief funds that were improperly diverted from small businesses. While this specific case did not involve patient care or medical billing, it highlights the broad reach of the False Claims Act and the government’s ongoing commitment to holding any organization accountable when it knowingly submits false claims for federal funds.

According to the government’s allegations, the Jewish War Veterans of the USA (JWV), a 501(c)(4) non-profit, received a first-draw PPP loan of $125,654, while the Center for International Policy, a 501(c)(3) think tank, obtained a second-draw loan of $192,447. Both organizations were statutorily ineligible for these funds—JWV due to its tax-exempt status, and the Center because second-draw loans were prohibited for entities primarily engaged in lobbying or political activities. Even though these allegations involve healthcare fraud-adjacent waste, the mechanics of the case are the same: certifying eligibility for government funds under false pretenses constitutes a violation of the False Claims Act, irrespective of the specific program being defrauded.

The U.S. Attorney’s Office emphasized that these claims are allegations only, and there has been no determination of liability. However, the settlements serve as a potent reminder that whistleblowers and federal auditors continue to scrutinize pandemic-era spending. Individuals with knowledge of similar fraud affecting COVID-19 relief programs are encouraged to report it to the National Center for Disaster Fraud. For those aware of Medicare fraud, Medicaid fraud, or illegal kickback arrangements, experienced qui tam attorneys can help protect your rights while holding fraudulent actors accountable.