San Francisco–based fashion retailer ALICE + OLIVIA has agreed to pay $3.2 million to settle allegations related to its receipt of a Paycheck Protection Program loan. According to a statement from the U.S. Attorney’s Office, the company was accused under the False Claims Act of misrepresenting its employee count in order to qualify for federal relief funds intended for small businesses affected by the COVID-19 pandemic.
Under the terms of the settlement agreement, the apparel company acknowledged misconduct related to its handling of government funds. U.S. Attorney Jay Clayton described the Paycheck Protection Program as a source of forgivable loans intended to assist businesses affected by the economic impact of the COVID-19 pandemic and referenced efforts to enforce compliance with federal programs. Special Agent in Charge Amaleka McCall-Brathwaite also referenced the role of oversight in protecting taxpayer funds and maintaining the administration of federal relief programs.
The complaint states that ALICE + OLIVIA submitted an application for a second-draw PPP loan on January 21, 2021, reporting 293 employees. The filing stated that, when combined with its domestic and foreign affiliates, the company’s total workforce exceeded 300 employees, which was above the Small Business Administration’s size eligibility threshold. The company later applied for and received full forgiveness of the loan, which totaled $2 million.
The complaint alleges that, in connection with its...
San Francisco–based fashion retailer ALICE + OLIVIA has agreed to pay $3.2 million to settle allegations related to its receipt of a Paycheck Protection Program loan. According to a statement from...