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Originally published Sept. 20, 2024
WHEELING, W.Va. – Court records concerning the Wheeling Park Commission’s alleged misuse of federal COVID funds and violation of the False Claims Act have been released.
The commission’s law firm, Steptoe & Johnson, filed a motion for a protective order following the August 2024 FOIA request by Virginia resident Bruce Fein claiming he was seeking premature discovery.
Attorney J. Bryan Quesenberry of Lincoln City, Oregon acting pro se on behalf of the United States of America (federal government) and against the defendant, the Wheeling Park Commission filed a lawsuit on Feb. 26, 2024 in the United States District Court, Northern District of West Virginia an action to recover Payroll Protection Fund Program (PPP) monies loaned to the commission. The funds were part of the COVID relief funds and were intended to help small businesses facing financial hardship during the pandemic.
The lawsuit claims that more than $3.75 million dollars was wrongfully loaned. The loan was also forgiven, according the the lawsuit. The suit claims the commission knew it was ineligible for the loan but applied anyway in violation of the False Claims Act, thereby possibly denying small businesses of their access to those funds.
The False Claims Act prohibits an entity of making a false or fraudulent claim for payment or approval. Any borrower who knowingly makes such a claim is liable for three times the amount of damages sustained by the government, according to the lawsuit.
The lawsuit demands that the commission pay three times the damages the government suffers plus a civil penalty of not less than $5,500 and $11,000 for each violation of cited codes.
The lawsuit also demanded a jury trial and the cost of expenses, travel and legal fees.
The suit also alleges that the commission created false records.
On July 8, 2024, U.S. Attorney William Ihlenfeld submitted to the court a notice to decline intervention in the case.
The city of Wheeling has ownership and control over the Wheeling Park Commission, according to the suit.
