Federal Suit Alleges Portland Bar Owner Swindled $350K in COVID Funds for Closed Eugene Venue

Key points

• Federal prosecutors filed a civil complaint in U.S. District Court in Portland on Sept. 10, 2026, against Ramzy Hattar.
• The suit alleges Hattar obtained $348,200 in Economic Injury Disaster Loans and Paycheck Protection Program funds for Taylor’s Bar & Grill.
• Taylor’s Bar & Grill in Eugene permanently closed on Feb. 25, 2020, after losing its liquor license, weeks before Hattar applied for loans.
• Hattar allegedly listed the address of his Portland business, River Pig Saloon, as the location for the closed Eugene bar in his applications.
• The government claims Hattar falsely certified that Taylor’s had 26 employees and was paying payroll taxes to qualify for the funds.
• The PPP loan was never repaid or forgiven, resulting in a total loss of over $145,000 for the SBA.

Background

This case follows a broader pattern of federal scrutiny regarding pandemic relief fraud, similar to recent charges against Lawrence, MA Mayor Brian DePeña for misusing over $1.5 million in COVID-19 loans. While the DePeña case involved criminal charges for diverting funds to personal debts and campaigns, the Hattar case is a civil suit focused on obtaining funds for a business that had already ceased operations. The SBA has previously noted that pandemic relief programs were susceptible to fraud due to the urgency of disbursement.

How outlets are covering it

KPTV and Lookout Eugene-Springfield report consistent facts regarding the lawsuit, the amounts involved, and the timeline of Taylor’s closure. KPTV emphasizes the contrast between Hattar’s prominent Portland businesses and the defunct Eugene venue, while Lookout Eugene-Springfield provides additional local context, noting that Taylor’s had a history of rowdy behavior and that former University of Oregon football coach Willie Taggart had previously warned players to avoid the bar. Both outlets note that Hattar has not responded to requests for comment. Lookout Eugene-Springfield additionally highlights that the SBA estimated over $200 billion in potentially fraudulent pandemic payments in a 2025 report, framing the case within a larger national trend of relief fund fraud.

Why it matters

The case highlights ongoing efforts by federal authorities to recover taxpayer funds misused during the pandemic, particularly through the False Claims Act, which allows for significant financial penalties. It also underscores the scrutiny faced by business owners who attempted to leverage emergency relief programs for ventures that were no longer operational, raising questions about the integrity of small business support systems during the crisis.

What to watch

Hattar has not yet entered an appearance in federal court, and no defense counsel has been listed in docket entries as of Sept. 12, 2026. The case will proceed through the federal court system in Portland, where the government will seek to recover the lost funds plus potential treble damages and penalties. Hattar’s legal team may challenge the allegations regarding the false certifications and the status of Taylor’s Bar & Grill at the time of the loan applications.