Ronald Hoplamazian, a Pennsylvania resident, has agreed to pay $3,277,486 to resolve allegations of misusing funds from the Economic Injury Disaster Loan (EIDL) program, according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Hoplamazian, who owns the consulting firm Eclipse Capital Partners LLC, applied for and received nearly $2 million in EIDL funds designed to help businesses recover from the economic impact of the COVID-19 pandemic. The U.S. Attorney’s Office stated that Hoplamazian promised to use the funds exclusively for business operations to address the economic harm caused by the pandemic.
However, instead of following these guidelines, Hoplamazian allegedly transferred most of the loan proceeds into a personal investment account, violating the rules of the program. This misuse of funds prompted the settlement.
“Hoplamazian instead allegedly used the EIDL proceeds for an entirely different purpose — to make personal investments,” U.S. Attorney Jacqueline C. Romero explained.
The settlement highlights the commitment of the Small Business Administration’s (SBA) Office of Inspector General to investigate and hold accountable those who misuse federal programs intended to support struggling businesses during difficult times. The settlement resolves civil claims, though no determination of liability has been made.
