Strand Book Store Settles $1.48M PPP Fraud Claim
The New York City bookstore agreed to pay $1,482,560 over a second PPP loan obtained while its controlling owner was the spouse of a sitting senator.
Updated on Nov. 3, 2026 in Financial Crime
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Strand Book Store, Inc. agreed to pay $1,482,560 under the False Claims Act to resolve allegations tied to a $932,350 second draw Paycheck Protection Program loan it received in February 2021. The settlement resolves claims brought through a qui tam suit filed under the False Claims Act.
Why it matters
Federal rules bar second draw PPP funds for businesses in which a member of Congress or their spouse holds a controlling interest. The settlement shows the government is pursuing recovery of pandemic relief loans it considers ineligible, even years after the funds were disbursed.
The civil settlement resolves claims in U.S. ex rel. Blockquote Inc. v. Strand Book Store, Inc., Civ. No. 25-3609 (D.D.C.), following an investigation led by Assistant U.S. Attorney Sean M. Tepe. The settlement payment of $1,482,560 is the amount Strand agreed to pay, and the relator will receive about $148,256 from it.
The players
Strand Book Store, Inc.
A longtime New York City bookstore whose PPP loan application is at the center of the settlement.
Ron Wyden
A U.S. Senator from Oregon whose wife, Nancy Bass Wyden, was Strand's controlling owner when the loan was applied for.
Blockquote Inc.
The private party that filed the qui tam suit on behalf of the United States and will receive a share of the settlement.
The details
Strand applied for the $932,350 second draw loan in February 2021, when Nancy Bass Wyden, wife of U.S. Senator Ron Wyden, was its controlling owner. Ms. Wyden certified that the spouse of a Member of Congress did not directly or indirectly hold a controlling interest in the applicant, a certification the government contends was inaccurate.
Timeline
March 2020: The CARES Act was enacted, authorizing forgivable PPP loans.
December 2020: The Economic Aid Act was enacted, adding second draw loans and the spousal prohibition.
February 2021: Strand applied for its $932,350 second draw PPP loan.
November 3, 2026: The U.S. Attorney announced the Strand settlement.
Legal Context
The case applies the Economic Aid Act's December 2020 second draw PPP rules, which expanded the program while barring funds to businesses controlled by a member of Congress or their spouse. It is one of the enforcement actions the Justice Department has pursued through its Fraud and Asset Recovery Division, which the extraction describes as having produced only its second recovery.
The settlement signals that businesses receiving pandemic relief loans can face repayment demands and False Claims Act liability years later if eligibility certifications prove inaccurate. Local businesses that took second draw PPP loans may want to confirm their own eligibility records.
The takeaway
Recipients of second draw PPP loans should keep records documenting that no member of Congress or spouse held a controlling interest at the time of application. Eligibility certifications can be enforced long after the loan is forgiven or disbursed.
Further reading
For more on related cases, see Financial Crime coverage in New York City.
More information
To report suspected pandemic relief fraud, use the National Center for Disaster Fraud complaint form.
Source note: This article includes information reported by The United States Department of Justice.
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