United States Attorney Jacqueline C. Romero has announced that Ronald Hoplamazian, a resident of Pennsylvania, has agreed to pay $3,277,486.35 to settle allegations of violating the False Claims Act. The claims involve the misuse of funds from the Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA).
Hoplamazian, who leads Eclipse Capital Partners, LLC, a consulting firm based in Pennsylvania, applied for and received an EIDL amounting to $1.9 million. It was alleged that instead of using these funds as working capital to address economic challenges caused by the COVID-19 pandemic, Hoplamazian transferred most of the loan proceeds into a personal investment account.
"SBA loaned Hoplamazian almost two million dollars to help his business recover from economic harms caused by the pandemic," stated U.S. Attorney Romero. "Hoplamazian instead allegedly used the EIDL proceeds for an entirely different purpose — to make personal investments — a purpose he knew to be inconsistent with the rules of the EIDL program. We will continue working with our partners to hold accountable individuals and businesses who misuse government programs like this."
Amaleka McCall-Brathwaite, Special Agent in Charge of SBA OIG’s Eastern Region, emphasized: "This settlement underscores the SBA Office of Inspector General’s commitment to identifying and holding accountable those who attempt to defraud programs intended to support small businesses. The Economic Injury Disaster Loan program was created to provide financial relief to businesses struggling due to unforeseen circumstances, not for personal enrichment through fraudulent means. SBA OIG will continue to work diligently with our law enforcement partners to protect taxpayer dollars and ensure these critical funds reach those who truly need them."
The investigation was conducted by the SBA Office of Inspector General and managed by Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Mansi G. Shah, and Auditor Denis Cooke.
It is important to note that these civil claims are merely allegations at this stage; no determination of civil liability has been made.