United States Attorney Jacqueline C. Romero has announced that Ronald Hoplamazian, a resident of Pennsylvania, will pay $3,277,486.35 to settle allegations of violating the False Claims Act. The claims involve 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, received an EIDL totaling $1,900,000 after applying for it as working capital to mitigate economic impacts caused by the COVID-19 pandemic. Allegations suggest he transferred most of these funds into a personal investment account, contrary to EIDL regulations.

“SBA loaned Hoplamazian almost two million dollars to help his business recover from economic harms caused by the pandemic,” said 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 the importance of accountability: “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.” She added that "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."

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; there has been no determination of civil liability.