LOS ANGELES, California — The Bloom Firm, a Calabasas-based law firm, and its senior management members, Lisa Bloom and Braden Pollock, have agreed to pay $274,000 to settle allegations of violating the False Claims Act. The United States alleged that The Bloom Firm, under the direction of Bloom and Pollock, falsely certified that it used Paycheck Protection Program (PPP) loan funds for eligible payroll expenses. The firm allegedly paid several employees who were ineligible or did not work for the firm during the loan's covered period.
As part of the settlement, The Bloom Firm will pay $204,200.34, while Bloom and Pollock will each pay $35,384.49.
“Attorneys have a duty to follow the law to the letter – especially when it comes to government programs aiding individuals and businesses impacted by COVID-19,” said U.S. Attorney Martin Estrada for the Central District of California.
“This settlement reaffirms my office’s commitment to affirm and uphold the integrity of pandemic-assistance programs.” “PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
“The department is committed to pursuing those who misused this taxpayer-funded program.” The settlement resolved claims brought under the qui tam or whistleblower provision of the False Claims Act, which allows private parties to file suit on behalf of the United States for.