(José Niño, Headline USA) Vicki Iseman, a prominent lobbyist and owner of Iseman & Associates, is accused of falsifying records to obtain ineligible Paycheck Protection Program (PPP) loans for her lobbying firm.
According to a report by Court Watch, prosecutors with the U.S. Attorney’s Office of Eastern Virginia filed a complaint claiming Iseman submitted IRS paperwork with several alterations to receive two PPP loans totaling $107,312.03 for her firm, Iseman & Associates.
The complaint against Iseman alleged that she changed her firm’s description from “lobbying” to “public affairs” on IRS forms to circumvent eligibility restrictions. The case is a civil matter, with no criminal charges filed.
Federal law dictates that firms generating 50% or more of their revenue from lobbying activities are barred from receiving PPP loans.
Prosecutors also asserted Iseman had disclosed in mandatory reports to Congress that the firm’s revenue from lobbying went over the 50% threshold.
The complaint claims that Iseman requested her staff in the fall of 2020 to investigate if the firm was eligible to receive a loan under PPP. A few months after the staff let her know that the firm was not eligible due to its lobbying practice, Iseman reportedly applied to receive a $55,687 loan at Bank of America. Court records highlight that one of the documents she submitted to receive the loan was the IRS form identifying “lobbying” as the firm’s main activity.
Per the court filings, when Bank of America did not initially approve the loan, Iseman allegedly believed that her application was rejected due to how the IRS form had “lobbying” as the firm’s primary source of revenue.
The complaint alleges she subsequently withdrew the application and submitted a second one the following day with an altered IRS form that listed “public affairs” instead. Prosecutors claim Bank of America gave the green light to the loan and an additional one for $51,625.03.
Court Watch submitted a request for comment to an online contact form from Iseman & Associates, but they did not receive a response. A public affairs official with the U.S Attorney’s office for the Eastern District of Virginia “respectfully declined to comment” when Court Watch reached out.
This case highlights potential abuse of the PPP loan system implemented during the COVID-19 pandemic and raises questions about the integrity of some lobbying firms in Washington, D.C.
Iseman began her career at the lobbying firm Alcalde & Fay, eventually becoming its youngest partner. Iseman primarily represented broadcasting and telecommunications clients such as PAX Network, Sinclair Broadcast Group, and the Hispanic Broadcasting Corporation.
In February 2008, The New York Times published an article suggesting an improper relationship between Iseman and Senator John McCain. The article implied that McCain’s aides were concerned about a potential romantic relationship and conflict of interest due to Iseman’s lobbying activities. Both McCain and Iseman denied any improper relationship.
“Convinced the relationship had become romantic, some of his top advisers intervened to protect the candidate from himself by instructing staff members to block the woman’s access, privately warning her away and repeatedly confronting him,” the newspaper reported at the time.
“Mr. McCain, 71, and the lobbyist, Vicki Iseman, 40, both say they never had a romantic relationship. But to his advisers, even the appearance of a close bond with a lobbyist whose clients often had business before the Senate committee Mr. McCain led threatened the story of redemption and rectitude that defined his political identity.”
As a response to the piece, Iseman filed a $27 million defamation lawsuit against The New York Times in December 2008. She alleged that the newspaper falsely implied a romantic relationship with McCain and unethical lobbying practices.
The lawsuit was settled in February 2009 without any payment. The parties released the following joint statement after the settlement: “To resolve the lawsuit, Ms. Iseman has accepted The Times’s explanation, which will appear in a Note to Readers to be published in the newspaper on Feb. 20, that the article did not state, and The Times did not intend to conclude, that Ms. Iseman had engaged in a romantic affair with Senator McCain or an unethical relationship on behalf of her clients in breach of the public trust.”
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
