The U.S. Attorney for the District of Columbia announced on September 23, 2025, that six non-profit organizations have agreed to pay more than $3 million to settle allegations of violating the False Claims Act in connection with loans obtained through the Paycheck Protection Program (PPP). The settlements address claims that these organizations were not eligible for PPP loans but received them by falsely certifying their eligibility.
The CARES Act, passed in March 2020, provided financial support during the COVID-19 pandemic and allowed certain nonprofit organizations to receive potentially forgivable PPP loans. However, nonprofits classified under Section 501(c)(4) of the Internal Revenue Code were not eligible for such loans. Additionally, entities mainly engaged in political or lobbying activities were barred from receiving “second draw” PPP loans.
“You don’t steal money from the federal government, especially when that money should be going to more deserving individuals,” said U.S. Attorney Jeanine Ferris Pirro.
Wendell Davis, General Counsel of the Small Business Administration (SBA), stated: “The favorable settlements are the product of enhanced efforts by the Small Business Administration’s Office of General Counsel, working with the U.S. Attorney’s Office and other Federal law enforcement agencies to investigate and recover monies improperly obtained from the Paycheck Protection Program, as well as penalties.”
The organizations involved in these settlements include:
– Armenian National Committee of America Inc., a Section 501(c)(4) organization representing Armenian-Americans on public policy matters. It will pay $184,681.82 after receiving a $92,340.91 loan.
– Center for Immigration Studies, a Section 501(c)(3) think tank focused on immigration policy research. It will pay $401,299.15 following a $366,160 loan.
– Diplomatic and Consular Officers Retired Inc., a Section 501(c)(4) group promoting international affairs understanding among foreign affairs professionals. It will pay $355,306 after obtaining a $203,032 loan.
– National Organization for Women (NOW), described as the largest feminist grassroots activist group in the United States and organized under Section 501(c)(4). NOW will pay $180,678 following a $90,339 loan.
– National Women’s Political Caucus Inc., dedicated to supporting women candidates for office and organized under Section 501(c)(4). It will pay $34,954 after receiving two loans totaling over $17,000.
– Third Way is identified as a national think tank and advocacy organization under Section 501(c)(4). Third Way will pay $1,949,542 after securing a nearly one-million-dollar loan.
Investigations leading to these civil settlements were conducted by Assistant United States Attorney Sean M. Tepe and Auditor Timothy C. Hurley with assistance from Caitlin J. Kelly at SBA’s Office of General Counsel.
Allegations resolved through these agreements remain unproven; there has been no determination of liability.
Members of the public can report suspected fraud involving COVID-19 relief programs by calling (866) 720-5721 or submitting an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
