NEW JERSEY CRIMINAL LAWYERS

Florida PPP and EIDL Loan Fraud Lawyers

Protect Yourself from Potential PPP Loan Fraud Charges: Everything You Need to Know

If you are a small business owner, there’s no doubt that the Paycheck Protection Program (PPP) has been a lifesaver amid the COVID-19 pandemic, offering financial relief to struggling businesses. Unfortunately, it has also become an opportunity for fraudsters to take advantage of vulnerable businesses. As a result, many people and companies have faced criminal complaints and charges for various federal offenses. This is why it’s crucial to understand what’s at stake and take the necessary measures to protect yourself against potential charges.

The Real Risk of Indictment for PPP Loan Fraud

The US Department of Justice (DOJ) is dedicated to prosecuting all those who have defrauded the Paycheck Protection Program. They’re investigating individuals and businesses suspected of submitting fraudulent applications, falsifying payroll information, using loan funds for unauthorized personal expenses, and making false PPP loan forgiveness certifications.

Multiple PPP Loan Fraud Cases Have Been Filed

PPP loan fraud cases aren’t only theoretical but have become a stark reality for many people facing accusations of fraudulent activity in their PPP loan applications. The DOJ has filed multiple lawsuits against individuals involved in this type of fraud – they’ve charged persons who set up shell companies and provided false payroll information to obtain loans, unlawfully used money meant for business survival on personal expenses, attempted to secure several loans by providing burnt information or other acts similar acts designed to deceive as being genuine applications.

Collaboration with Other Federal Law Enforcement Agencies

Defrauding the Paycheck Protection Program isn’t just a concern unique to DOJ. Other federal law enforcement agencies like the FBI are aware that fraud around this program is happening daily. DOJ collaborates with them all,, including the U.S. Small Business Administration Office of Inspector General (SBA-OIG), the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Internal Revenue Service Criminal Investigation (IRS-CI), and other federal law enforcement agencies. The goal is to locate violators and ensure they face legal consequences for their fraudulent activities.

Defense Strategies for PPP Loan Fraud Cases

A solid legal defense strategy is necessary if you or your business faces accusations of PPP loan fraud. Legally, culpability requires the federal authority to prove that you intended to defraud. Your first line of defense is to show that your company legitimately obtained a PPP loan, correctly documented the funds received in a segregated account meant for this loan, and spent it in line with program guidelines.

You can also assist in demonstrating a lack of intent to deceive by providing written documentation explaining that you unwittingly gained access to PPP funds despite being ineligible under the program’s guidelines or by inadvertently using those funds improperly or signing an incorrect forgiveness certification.

Potential Charges against PPP Loan Fraud Offenders

PPP loan fraud is not taken lightly; violators may face both criminal and civil charges under pre-existing federal statutes like making false statements, bank fraud, wire fraud, evading taxes payments, concealing assets and money from authorities, providing false statements to Federal Agents plus conspiracy and attempt-related charges as well as:

– Criminal charges under False Claims Act
– Civil penalties under False Claims Act

Conclusion

The Paycheck Protection Program has become a valuable source for numerous illegitimate sources; thus fraudsters use the loopholes within its provisions for illegal loans. The DOJ understands this reality too well and has made it their top priority to investigate and prosecute all those involved in PPP loan fraud. If you’re facing charges or an accusation regarding this, seeking competent legal advice from attorneys experienced in this area can significantly minimize sentencing outcomes. Honesty about what happened can help craft a strong legal defense that reduces prosecution’s impact on yourself or business.