Political Solutions, LLC has agreed to pay $556,924 to the United States in damages and penalties. This settlement resolves allegations that the firm violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) by obtaining a loan under the Paycheck Protection Program (PPP). Acting U.S. Attorney Kimberly A. Sanchez announced this development.
The PPP was established in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security Act to support small businesses affected by COVID-19. While many small businesses qualified for these loans, those engaged primarily in political or lobbying activities were not eligible.
In April 2020, Political Solutions applied for and received a PPP loan amounting to $216,000. The firm later obtained forgiveness for this loan from the U.S. Small Business Administration (SBA) in January 2021. The settlement addresses allegations that Political Solutions falsely certified its eligibility for a PPP loan. As part of the agreement, Political Solutions will pay $456,924 under the FCA and an additional $100,000 in civil penalties under FIRREA.
Acting U.S. Attorney Sanchez emphasized the importance of protecting public funds: “The Paycheck Protection Program was a vital resource for struggling small businesses during the COVID-19 pandemic,” she said. “This Office will continue to investigate businesses who took advantage of these funds at the expense of the public.”
SBA General Counsel Wendell Davis remarked on federal efforts: “The favorable settlement in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working in conjunction with the U.S. Attorney’s Office, to pursue a fair recovery of pandemic relief funds.”
Assistant U.S. Attorney Robert A. Fuentes handled this matter.
It is important to note that these claims are allegations only; there has been no determination of liability.
