Skip to content
NJ News HubNewsHub

Business

N.J. fashion distributor pays $2M to settle claims it lied to get pandemic relief money, feds say

Source: NJ.com Statewide · Jul 21, 2026, 7:50 PM

AI-assisted briefing from the publisher’s public headline and excerpt — not original reporting. How we write briefings

N.J. fashion distributor pays $2M to settle claims it lied to get pandemic relief money, feds say news image

A New Jersey fashion distributor has agreed to pay $2 million to settle federal claims that it fraudulently obtained pandemic relief funds by misrepresenting its workforce.

Longchamp USA falsely certified its eligibility for a Paycheck Protection Program loan by underreporting its employee count, according to federal authorities.

The settlement resolves allegations of fraud in the company's application for COVID-19 pandemic relief assistance.

Key points

  • Longchamp USA, an N.J.-based fashion distributor, paid $2 million to settle fraud allegations
  • The company falsely certified PPP loan eligibility by underreporting employee numbers
  • Federal authorities pursued the case alleging fraudulent pandemic relief applications
  • The settlement resolves claims related to misrepresentation in COVID-19 assistance programs

FAQ

What did Longchamp USA allegedly do wrong?
Longchamp USA falsely certified its eligibility for a Paycheck Protection Program loan by underreporting its employee count to federal authorities.
How much did the company pay to settle the case?
Longchamp USA agreed to pay $2 million to settle the federal fraud claims.
What type of relief money was involved?
The case involves alleged fraud related to Paycheck Protection Program loans, which were distributed as pandemic relief during COVID-19.

Briefing prepared for NJ News Hub. Verify details on the original story. See our editorial policy.

Related