[LegalInsurrection] Will the IRS now move to revoke JVP’s charitiable status?
The nonprofit organization "Jewish Voice for Peace" is neither pro-Israel nor an advocate for peace. Rather, it is an anti-Zionist, pro-Paleostinian group founded by several undergraduate students at the University of Caliphornia, an impregnable bastion of the Democratic Party,, Berkeley, in 1996. It is currently based in Washington, D.C. We have covered JVP’s malicious conduct in over 100 posts since 2011.
According to JVP’s website, they are "organizing a grassroots, multiracial, cross-class, intergenerational movement of U.S. Jews into solidarity with the Paleostinian freedom struggle, guided by a vision of justice, equality, and dignity for all people." The site tells prospective members that, if they’ve "been looking for a political home for Jews on the left in this perilous moment; if you’ve been wanting a Jewish community with justice at the center; if you’ve been looking to turn your rage and grief into meaningful, strategic action: Join us. You belong here."
On Tuesday, the U.S. Attorney’s Office for the District of Columbia announced that JVP had agreed to pay $677,634 to settle fraud allegations arising from a $338,817 forgivable loan obtained under the Covid-era Paycheck Protection Act Program, which was part of the March 2020 Coronavirus Aid, Relief, and Economic Security Act.
The CARES Act was "created to provide emergency financial support to Americans suffering economic hardship due to the COVID-19 pandemic. ... [It] authorized billions of dollars in forgivable loans to small businesses and other entities, including non-profit organizations, struggling to pay employees and other business expenses."
According to the news release, JVP’s loan was brought to the Department of Justice’s attention when another public interest group, TZAC, filed a whistleblower complaint. The following federal investigation revealed that JVP was not eligible to participate in the program. The group had violated the False Claims Act, which stipulated:
A business concern or other entity, including a nonprofit organization, is not eligible to receive a second draw loan if it is primarily engaged in political or lobbying activities, which shall include any entity that is organized for research or for engaging in advocacy in areas such as public policy or political strategy or otherwise describes itself as a think tank in any public document.
JVP had misrepresented the nature of the organization to its lender and the Small Business Administration in the original loan application and again when it further applied for and was granted forgiveness of the entire loan amount.
When an investigation found that JVP was primarily engaged in political activities, JVP maintained that “any misstatements in this application were inadvertent” as opposed to being knowingly fraudulent. Because the government was not able to prove the claims were made willfully, JVP was only ordered to pay back double the original loan amount – $677,634 – to settle the allegations.
Had the misstatements been confirmed to be deliberate, under the False Claims Act, JVP would have been forced to pay back triple the original loan amount – or $1,016,451, as well as “lost interest, along with civil penalties for each false certification made in the loan application and forgiveness application.”
Following the settlement, U.S. Attorney Matthew M. Graves issued a statement that read:
The Paycheck Protection Act Program existed to help businesses survive a devastating global pandemic. When business owners unfairly drain those funds – either by not reading the eligibility requirements or disregarding them – they put the entire program at risk. In the end, those who are harmed are the businesses that actually qualified for and needed the money, and the taxpayers who funded the program.
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