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 false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Liberty Law Office, Inc.
and is captioned U.S. ex rel.
Liberty Law Office Inc. v. The Bloom Firm et al.
, Dkt. No. 21-cv-06279 (C.
D. Cal.).
Liberty Law Firm Inc. will receive approximately $44,000 in connection with the settlement. The resolution was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.
S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General. Assistant United States Attorney Aaron Kollitz of the Civil Division’s Civil Fraud Section and Trial Attorney F.
Elias Boujaoude of the Justice Department were involved in the case..
