U.S. Attorney Announces $3.2 Million Settlement With Fashion Company Relating To Improper Receipt Of Paycheck Protection Program Loan

Press Release U.S. Attorney Announces $3.2 Million Settlement With Fashion Company Relating To Improper Receipt Of Paycheck Protection Program Loan Friday, February 6, 2026 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Alice + Olivia, LLC Admits That It Was Ineligible to Receive a Paycheck Protection Program Loan United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that ALICE + OLIVIA, LLC (“ALICE + OLIVIA”) has agreed to pay $3,200,000 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program (“PPP”) loan. Under the settlement approved by U.S. District Judge Analisa Torres, ALICE + OLIVIA has admitted and accepted responsibility for conduct alleged in the Government’s Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic. In early 2021, the SBA permitted qualifying businesses that received an initial PPP loan to apply for a second PPP loan (a “Second-Draw PPP loan”) if they met certain requirements. For example, when ALICE + OLIVIA applied for a Second-Draw PPP loan in January 2021, a business generally could have no more than 300 employees, including the employees of its domestic and foreign affiliates. ALICE + OLIVIA exceeded this size eligibility requirement. “The Paycheck Protection Program was established to help businesses weather the extraordinary economic disruption caused by the COVID-19 pandemic by offering forgivable loans,” said U.S. Attorney Jay Clayton. “But too many applicants sought and obtained loans that they were never entitled to receive. The women and men of this Office are dedicated to holding actors who attempt to bilk public programs accountable.”“This settlement reflects our continued commitment to protecting taxpayer dollars and ensuring that federal relief programs are used as Congress intended,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite. “SBA-OIG will continue working closely with our law enforcement partners to hold accountable those who misrepresent their eligibility.”As alleged in the Complaint:On or about January 21, 2021, ALICE + OLIVIA submitted, through its authorized representative, an application for a Second-Draw PPP loan to a financial institution, and ALICE + OLIVIA was subsequently approved for and received a Second-Draw PPP loan for $2,000,000. On or about February 9, 2022, ALICE + OLIVIA, through its authorized representative, applied for and received full forgiveness of its Second-Draw PPP loan.ALICE + OLIVIA stated in its Second-Draw PPP loan application that it had 293 employees, when in fact ALICE + OLIVIA (together with its domestic and foreign affiliates) had more than 300 employees. ALICE + OLIVIA also certified, among other things, that it was eligible to receive the Second-Draw PPP loan and that the information provided in its application and supporting documents was true and accurate in all material respects.When ALICE + OLIVIA later applied for PPP loan forgiveness, it misrepresented in its application that it had only 271 employees at the time of its Second-Draw PPP loan application. ALICE + OLIVIA also certified, once again, that the information provided in its application and supporting documents was true and correct in all material respects.ALICE + OLIVIA violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its Second-Draw PPP loan application and forgiveness application. Specifically, ALICE + OLIVIA falsely certified its eligibility for the Second-Draw PPP loan because ALICE + OLIVIA (together with its domestic and foreign affiliates) employed more than 300 employees and was thus ineligible for the loan it received.In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Rebecca Salk is in charge of the case. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated February 6, 2026 Attachments us_v_alice_olivia_proposed_stip_order_and_consent_fully_executed.pdf [PDF, 5 MB] u.s._v._alice_and_olivia_complaint_for_filing.pdf [PDF, 208 KB] Component USAO - New York, Southern Press Release Number: 26-023

Press Release U.S. Attorney Announces $3.2 Million Settlement With Fashion Company Relating To Improper Receipt Of Paycheck Protection Program Loan Friday, February 6, 2026 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Alice + Olivia, LLC Admits That It Was Ineligible to Receive a Paycheck Protection Program Loan United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Eastern Regional Office of the U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), Amaleka McCall-Brathwaite, announced today that ALICE + OLIVIA, LLC (“ALICE + OLIVIA”) has agreed to pay $3,200,000 to resolve allegations that it violated the False Claims Act by falsely certifying that it was eligible for a Paycheck Protection Program (“PPP”) loan. Under the settlement approved by U.S. District Judge Analisa Torres, ALICE + OLIVIA has admitted and accepted responsibility for conduct alleged in the Government’s Complaint, including that it was ineligible to receive the PPP loan due to the total number of individuals it employed.The PPP, administered by the SBA, was created to assist small businesses nationwide adversely impacted by the COVID-19 pandemic. In early 2021, the SBA permitted qualifying businesses that received an initial PPP loan to apply for a second PPP loan (a “Second-Draw PPP loan”) if they met certain requirements. For example, when ALICE + OLIVIA applied for a Second-Draw PPP loan in January 2021, a business generally could have no more than 300 employees, including the employees of its domestic and foreign affiliates. ALICE + OLIVIA exceeded this size eligibility requirement. “The Paycheck Protection Program was established to help businesses weather the extraordinary economic disruption caused by the COVID-19 pandemic by offering forgivable loans,” said U.S. Attorney Jay Clayton. “But too many applicants sought and obtained loans that they were never entitled to receive. The women and men of this Office are dedicated to holding actors who attempt to bilk public programs accountable.”“This settlement reflects our continued commitment to protecting taxpayer dollars and ensuring that federal relief programs are used as Congress intended,” said SBA-OIG Special Agent in Charge Amaleka McCall-Brathwaite. “SBA-OIG will continue working closely with our law enforcement partners to hold accountable those who misrepresent their eligibility.”As alleged in the Complaint:On or about January 21, 2021, ALICE + OLIVIA submitted, through its authorized representative, an application for a Second-Draw PPP loan to a financial institution, and ALICE + OLIVIA was subsequently approved for and received a Second-Draw PPP loan for $2,000,000. On or about February 9, 2022, ALICE + OLIVIA, through its authorized representative, applied for and received full forgiveness of its Second-Draw PPP loan.ALICE + OLIVIA stated in its Second-Draw PPP loan application that it had 293 employees, when in fact ALICE + OLIVIA (together with its domestic and foreign affiliates) had more than 300 employees. ALICE + OLIVIA also certified, among other things, that it was eligible to receive the Second-Draw PPP loan and that the information provided in its application and supporting documents was true and accurate in all material respects.When ALICE + OLIVIA later applied for PPP loan forgiveness, it misrepresented in its application that it had only 271 employees at the time of its Second-Draw PPP loan application. ALICE + OLIVIA also certified, once again, that the information provided in its application and supporting documents was true and correct in all material respects.ALICE + OLIVIA violated the False Claims Act by knowingly presenting and making, or causing to be presented and made, false claims and statements in connection with its submission of its Second-Draw PPP loan application and forgiveness application. Specifically, ALICE + OLIVIA falsely certified its eligibility for the Second-Draw PPP loan because ALICE + OLIVIA (together with its domestic and foreign affiliates) employed more than 300 employees and was thus ineligible for the loan it received.In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Rebecca Salk is in charge of the case. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated February 6, 2026 Attachments us_v_alice_olivia_proposed_stip_order_and_consent_fully_executed.pdf [PDF, 5 MB] u.s._v._alice_and_olivia_complaint_for_filing.pdf [PDF, 208 KB] Component USAO - New York, Southern Press Release Number: 26-023