WASHINGTON (Nov. 5, 2026) — Strand Book Store Inc., a New York City bookstore owned by the wife of U.S. Sen. Ron Wyden, has agreed to pay $1,482,560 to resolve allegations that it improperly obtained a second-draw loan through the federal Paycheck Protection Program (PPP), the U.S. Department of Justice announced.
The settlement resolves allegations that the bookstore knowingly submitted false information when applying for a $932,350 second-draw PPP loan in February 2021, despite being ineligible under federal law because its controlling owner, Nancy Bass Wyden, is married to a member of Congress.
“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,” U.S. Attorney Pirro said in announcing the settlement.
According to the Justice Department, Congress authorized the PPP through the Coronavirus Aid, Relief, and Economic Security Act in March 2020. The program, administered by the Small Business Administration, provided forgivable loans to eligible small businesses and nonprofit organizations to help retain employees and cover certain expenses during the COVID-19 pandemic.
Congress subsequently authorized additional PPP funding through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act in December 2020. The legislation allowed eligible businesses to apply for a second round of funding but prohibited applicants from receiving second-draw loans if a member of Congress or their spouse directly or indirectly held a controlling interest in the business.
At the time of Strand’s February 2021 application, Nancy Bass Wyden was the bookstore’s controlling owner, according to the Justice Department.
As part of the application, Bass Wyden made several certifications on behalf of the bookstore, including a statement that the spouse of a member of Congress did not directly or indirectly hold a controlling interest in the applicant.
Federal officials allege that the certification was knowingly and materially false, making Strand ineligible for the $932,350 loan it received.
The settlement resolves claims brought under the whistleblower provisions of the federal False Claims Act. Those provisions allow private parties to file lawsuits on behalf of the United States and receive a portion of any resulting recovery.
The lawsuit was filed by corporate whistleblower Blockquote Inc. under the case caption U.S. ex rel. Blockquote Inc. v. Strand Book Store, Inc., Civil No. 25-3609, in the U.S. District Court for the District of Columbia.
Blockquote Inc. will receive approximately $148,256 from the settlement.
The investigation was conducted by Assistant U.S. Attorney Sean M. Tepe, with support from Christopher J. McClintock of the Small Business Administration’s Office of General Counsel.
The Justice Department said the settlement represents the second recovery on behalf of the United States since U.S. Attorney Pirro announced the creation of the office’s Fraud and Asset Recovery Division, led by Assistant U.S. Attorney Dan Schiffer.
The department also announced April 7 the creation of the National Fraud Enforcement Division, which is focused on investigating and prosecuting fraud against the American public. The initiative supports President Donald Trump’s Task Force to Eliminate Fraud, a government-wide effort chaired by Vice President J.D. Vance to address fraud, waste and abuse in federal benefit programs.
The Justice Department emphasized that the claims resolved by the civil settlement are allegations and that there has been no determination of liability.
Potential fraud involving federal COVID-19 relief programs can be reported to the Department of Justice’s National Center for Disaster Fraud at (866) 720-5721 or through its online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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