Can My Business Survive PPP Fraud Charges? Your Company Is Already DEAD!

Can My Business Survive PPP Fraud Charges? Your Company Is Already DEAD!

So your probably desperately hoping your business can somehow survive these PPP fraud charges, thinking maybe you can weather the storm and keep operating. Maybe you have loyal customers who’ll stick by you or employees depending on the company. Or maybe you think the business is separate from your personal criminal issues. Look, we get it. Your business is your life’s work and you can’t imagine losing it. But here’s the absolutely devastating reality – PPP fraud charges are a DEATH SENTENCE for businesses, with 95% shutting down within a year of indictment!

What Happens Immediately After Charges?

The moment PPP fraud charges become public, your business starts DYING! Banks freeze accounts within hours – you can’t make payroll, pay vendors, or access operating capital. Credit lines get cancelled immediately. Merchant processors shut down your ability to accept credit cards. Your business is paralyzed instantly!

Customers abandon you OVERNIGHT! The Department of Justice issues press releases about PPP fraud charges that get picked up by local media. Your company name appears in headlines with “FRAUD” next to it. Google searches for your business show news articles about federal indictments. Customers flee to competitors immediately!

Vendors and suppliers cut you off instantly! Nobody wants to do business with a company under federal investigation. Suppliers demand cash up front or refuse to sell at all. Business partners terminate contracts citing “moral turpitude” clauses. Professional relationships you spent decades building evaporate in days!

Can the Business Operate During Prosecution?

Operating during prosecution is NEARLY IMPOSSIBLE! First, the government might seize the business as an “instrumentality of fraud.” They literally padlock the doors, seize inventory, and freeze all assets. Your business becomes evidence in your criminal case!

Even if not seized, who’s running things while your fighting federal charges? Your spending every waking hour with lawyers, in court, preparing defenses. Your employees are getting interviewed by FBI agents. Your managers are quitting to avoid association with fraud. The business has no leadership!

The SBA Office of Inspector General blacklists PPP fraud defendants from ALL government contracts! If your business depends on any federal, state, or local government work – its GONE! That debarment extends to all affiliate companies too. Your entire business network gets destroyed!

What About Employee Loyalty?

Employees abandon sinking ships IMMEDIATELY! The moment charges are filed, your best employees update there resumes. They can’t afford to have “worked at fraud company” on there LinkedIn. Competitors actively recruit your staff, knowing they’re desperate to leave!

Key employees become government witnesses! That trusted CFO who knows everything? They’re cooperating with prosecutors to save themselves. Your office manager with access to all records? Wearing a wire. Long-term employees you considered family? Testifying against you for immunity!

The employees who stay are the ones who CAN’T leave – the unemployable ones! Your top talent flees while deadweight remains. The business becomes dysfunctional with departing expertise and demoralized remaining staff. Productivity crashes, quality suffers, and the death spiral accelerates!

Will Insurance Cover Anything?

Business insurance EXCLUDES criminal acts! Your general liability, professional liability, D&O insurance – they all have fraud exclusions! The moment your charged, insurers send cancellation notices. Any pending claims get denied. Your premiums paid for years? Worthless!

Legal expense insurance won’t cover criminal defense! Those policies specifically exclude criminal proceedings. Your facing hundreds of thousands in legal fees with no insurance coverage. Every dollar spent on lawyers is money not invested in the business!

Even if you beat the charges, insurance companies won’t touch you! Try getting liability insurance as a company that was prosecuted for federal fraud – IMPOSSIBLE! No insurance means no contracts, no leases, no operations. The business can’t function without insurance!

Can Customer Relationships Survive?

B2B customers terminate contracts immediately citing “reputational risk!” Fortune 500 companies have compliance departments that flag vendor fraud charges. Government contractors can’t work with indicted companies. Professional service firms drop you to protect there own reputations!

Consumer customers disappear even faster! Would YOU buy from a company whose owner is facing federal fraud charges? Online reviews mention the fraud charges. Competitors advertise that they’re the “honest alternative.” Your brand becomes TOXIC!

The Federal Trade Commission might investigate consumer fraud if you used PPP funds improperly! Now your facing multiple agencies, multiple investigations, and customers filing civil lawsuits! Class action lawyers circle like vultures, recruiting your customers as plaintiffs!

What Happens to Business Licenses?

Professional licenses get SUSPENDED or REVOKED! Medical practices lose medical licenses. Law firms face disbarment. Real estate brokers lose licenses. Contractors lose bonds and permits. The business literally cannot legally operate!

State licensing boards take action regardless of federal case outcomes! They have lower standards than criminal courts. An indictment alone triggers license review. Fighting criminal charges while simultaneously defending professional licenses? Impossible!

Industry associations EXPEL members facing fraud charges! Trade organization memberships, professional certifications, chamber of commerce membership – all gone! Your business becomes a pariah in your own industry. Networking events, trade shows, industry conferences – your banned from everything!

Is Bankruptcy an Option?

Bankruptcy CAN’T save businesses with fraud charges! Criminal restitution and fines are NOT dischargeable in bankruptcy! The government’s claims have super-priority over all other creditors. Bankruptcy just accelerates liquidation while you still owe millions!

The Department of Justice objects to bankruptcy plans that allow continued operations! They argue fraudsters shouldn’t benefit from bankruptcy protection. Judges usually agree. Your Chapter 11 reorganization becomes Chapter 7 liquidation!

Plus, bankruptcy trustees investigate fraud even deeper! They have claw-back powers to reverse transactions going back years. That equipment you bought? Clawed back. Salary you paid yourself? Reversed. The bankruptcy makes things WORSE, not better!

What If I’m Acquitted?

Even ACQUITTAL doesn’t resurrect dead businesses! By the time trial ends, your company has been closed for 1-2 years. Customers are gone. Employees moved on. Vendors found new partners. Market share captured by competitors. The business ecosystem moved on without you!

The reputational damage is PERMANENT! Google searches still show the fraud charges forever. “Acquitted of fraud” still has “fraud” in it. Customers remember the accusation, not the acquittal. Would you trust a business that was prosecuted for federal fraud, even if acquitted?

Rebuilding is essentially starting from zero with massive baggage! No bank will lend to you. Investors won’t touch you. Suppliers demand cash up front. Insurance companies refuse coverage. You’re trying to rebuild on scorched earth!

What About Selling the Business?

Nobody buys businesses under fraud investigation! Due diligence reveals the federal charges immediately. Buyers run away. Those willing to buy offer 10 cents on the dollar – vulture investor prices. Your life’s work sold for scrap value!

The government might BLOCK any sale! Asset freezes prevent transfers. Prosecutors argue sales are attempts to hide assets. Buyers get scared of “successor liability” for fraud. Even if you find a buyer and get approval, proceeds go to fines and restitution!

Competitors actually BENEFIT from your charges! They’re picking up your customers, hiring your employees, taking your market share. They might buy your assets in liquidation for pennies. Your misfortune becomes there opportunity!

CATASTROPHIC WARNING: 95% of businesses DIE within a year of PPP fraud charges!
Banks freeze accounts! Customers flee! Licenses revoked!
Call 212-300-5196 NOW before charges destroy your life’s work!

Look, we need to be brutally honest – PPP fraud charges are almost always fatal to businesses. The moment charges are filed, a cascade of destruction begins that’s nearly impossible to stop. Banks freeze accounts, customers flee, employees quit, vendors cut you off, licenses get revoked, and insurance gets cancelled. The business enters a death spiral that accelerates daily.

Even if you somehow keep the doors open during prosecution, the reputational damage is permanent. The internet never forgets. Future customers, lenders, partners, and investors will always see those fraud charges. Acquittal doesn’t erase the damage – by then the business has been dead for years anyway.

The only chance for business survival is preventing charges from being filed in the first place. Once that indictment comes, once those press releases go out, once your business name is associated with federal fraud – it’s essentially over. Don’t wait until your business is on life support. Call us immediately at 212-300-5196 and let us try to save your company before PPP fraud charges deliver the death blow!