Posts tagged False Claims Act
In Michigan, a Modicum of Justice for a COVID-Exploiting Teachers’ Union
March 21, 2023 // According to a January 2022 Freedom Foundation report, labor unions and related organizations procured some 223 loans totaling $36.1 million during the period between the passage of the CARES Act in March 2020, which created the PPP program, and the American Rescue Plan in March 2021, which modified it. Leading recipients included teachers’ unions, government employees’ unions, and AFL-CIO advocacy groups. As the Freedom Foundation asserted in its report: The ineligible loans diverted resources away from the purpose of the PPP, namely helping businesses keep employees on payroll. Further, given that union revenue derives primarily from dues deducted from members’ paychecks, direct support to unions was unnecessary; to the extent the PPP loans to businesses allowed union employees to keep working, it also allowed unions to continue collecting dues from their paychecks.
The Michigan Education Association Improperly Took COVID-19 Relief Funds
March 6, 2023 // “The Michigan Education Association applied for money intended for struggling businesses during the height of the pandemic,” said Joseph G. Lehman, president of the Mackinac Center for Public Policy. “The union and MESSA obtained some of the largest PPP loans in the country. They took these funds, for which they were clearly ineligible, while shuttered restaurants, stores, other businesses and their workers struggled to stay afloat.” Private businesses and some nonprofits were eligible for the loans, but 501(c)(5) and 501(c)(9) organizations, like the MEA and MESSA, were clearly prohibited from receiving PPP funds. The Mackinac Center was eligible as a 501(c)(3) nonprofit, but did not apply for assistance. In April 2020, the MEA and MESSA both applied for PPP funding. The MEA received $6.4 million while MESSA received a $6.1 million loan. Officials of both organizations certified that they had read the eligibility requirements of the program and asserted they were eligible for the loans. Money from the program ran out within weeks. While the union and MESSA eventually returned the improper funds in December 2020, taking them in the first place denied eligible businesses from receiving them.