New Jersey Pawn Shop and its Owner Settle False Claims Act Allegations Relating to Paycheck Protection Program Loan

Daniel Markus Inc., which operated pawn shops in New Jersey, and its owner have agreed to pay $50,000 in civil penalties to settle allegations that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by obtaining more than one Paycheck Protection Program (PPP) loan in 2020. The company also agreed to repay the duplicative PPP loan in full to its lender, relieving the U.S. Small Business Administration (SBA) of liability to the lender for the federal guaranty of approximately $240,000 on the improper loan.