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A New York City bookstore owned by the wife of U.S. Sen. Ron Wyden (D-Oregon) has agreed to pay approximately $1.5 million for improperly applying for a COVID-era business loan in early 2021. The store was ineligible for the loan because owner Nancy Bass Wyden is wife of a U.S. senator, a violation of the law funding the small-business loan program, according to the U.S. Department of Justice.
The DOJ announced the settlement Tuesday. “The Paycheck Protection Program was created to save American jobs, not to enrich those who aren’t eligible for taxpayer-funded relief, especially the wife of a U.S. Senator,” said U.S. Attorney Jeanine Pirro.
She continued: “Strand Book Store, owned by Nancy Bass Wyden, wife of U.S. Senator Ron Wyden, received $932,350 in second draw [Paycheck Protection Program] funds despite a federal law barring businesses controlled by a member of Congress or their spouse from receiving those loans. Our Fraud and Asset Recovery Division will expose this abuse, pursue those who exploit taxpayer dollars, and hold them accountable. No one gets a pass when it comes to defrauding the American taxpayer.”
A spokesman for Sen. Wyden provided WW with a statement: “Sen. Wyden and his wife do not discuss her business and he had no involvement in the loan or settlement.”
Representatives of Strand Book Store could not immediately be reached for comment.
Prosecutors say the store violated the federal False Claims Act in applying for and accepting the loan, because it was owned by the wife of a senator.
In the early days of the pandemic in March 2020, Congress authorized funding for eligible small businesses to receive forgivable loans through the Coronavirus Aid, Relief and Economic Security (CARES) Act. Subsequent legislation authorized businesses to take “second draw” loans with a condition being that a member of Congress or their spouse cannot hold a controlling interest in the loan applicant.
According to the DOJ’s announcement, in February 2021, Stand applied for a second draw loan of $932,350. On behalf of Strand, Bass Wyden “made a number of certifications as part of the loan application, including that the spouse of a member of Congress does not directly or indirectly hold a controlling interest in the applicant. “Ms. Wyden’s certification was knowingly and materially false and Strand was not eligible for the second draw loan it received.”
The case originated from a private whistleblower—an entity called Blockquote Inc. Under the False Claims Act, Blockquote is entitled to a portion of the recovery which in this case is around $148,000.
