Prominent Attorney Lisa Bloom Settles COVID-19 Relief Fund Misuse Claims
Lisa Bloom, her husband, and law firm agree to pay over $274,000 to resolve allegations of misusing pandemic relief funds. They deny wrongdoing but settle to avoid further legal action.
In a significant development, renowned California attorney Lisa Bloom, her spouse, and her law firm have reached a settlement with federal prosecutors over allegations of misusing COVID-19 pandemic relief funds. The agreement, announced on August 15, 2024, requires the parties to pay a total exceeding $274,000 to resolve claims under the False Claims Act.
The Bloom Firm will contribute approximately $204,000 to the settlement, while Lisa Bloom and her husband Braden Pollock will each pay more than $35,000. Despite the settlement, all parties maintain their innocence and have not admitted to any wrongdoing.
The case centers around the alleged misuse of funds from the Paycheck Protection Program (PPP), a initiative established by the Small Business Administration (SBA) in 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Prosecutors claim that the Bloom Firm incorrectly certified its use of PPP funds for eligible payroll expenses, instead allocating the money to ineligible workers or those not employed by the firm.
Martin Estrada, the U.S. Attorney for the Central District of California, emphasized the importance of legal professionals adhering strictly to the law, particularly concerning government aid programs during the COVID-19 crisis. This case highlights the ongoing scrutiny of pandemic relief fund usage, which has been a focus of federal investigators since the program's inception over four years ago.
"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."
Lisa Bloom, daughter of prominent attorney Gloria Allred, has built a reputation for handling high-profile cases. Her client list has included women who accused Jeffrey Epstein and Bill Cosby of sexual assault. Notably, Bloom briefly advised Harvey Weinstein in 2017, a decision she later described as a "colossal mistake."
The PPP, which concluded on May 31, 2021, provided over $800 billion in forgivable loans to small businesses during the pandemic. In 2020 alone, U.S. law firms borrowed nearly $12 billion from the program as court closures and a halt in corporate deals threatened their revenues.
This settlement serves as a reminder of the ongoing investigations into potential misuse of pandemic relief funds and the government's commitment to ensuring proper allocation of these resources. As the legal community continues to navigate the aftermath of the COVID-19 crisis, cases like this underscore the importance of strict adherence to government program guidelines, even for those tasked with upholding the law.
