NEW JERSEY CRIMINAL LAWYERS

Iowa PPP and EIDL Loan Fraud Lawyers

DOJ Investigations: Consequences for PPP Loan Fraud

The COVID-19 pandemic was a significant setback for businesses, especially small enterprises that struggled with its financial implications. To aid their recovery efforts, the government set up the Paycheck Protection Program (PPP) to offer forgivable, federals-backed loans. However, PPP eventually became a target for fraudsters. As such, The U.S Department of Justice (DOJ) is currently conducting thorough investigations to expose any misappropriation or abuse of PPP funds. Companies or individuals indicted in these web-like investigations may face severe repercussions.

DOJ Investigates PPP Loan Fraud Cases Aggressively

The impetus and impact behind Paycheck Protection Program loan fraud are solemn issues to DOJ and rightly passionate about bringing it to an end. Therefore the agency is vigorously pursuing investigative activities into alleged cases where businesses or individuals provided false information or broke regulations on using PPP loan funds without authorization. Moreover, the DOJ is probing claims of fraudulent certification for PPP loan forgiveness, and those found culpable could face either a civil plea or criminal accusation. According to DOJ’s statement, “The Paycheck Protection Program was designed to help Americans struggling with financial hardship during the pandemic. Any individual or entity that defrauds this critical program will face severe consequences.”

DOJ Actively Pursues Charges for Several PPP Loan Fraud Cases

There have already been several instances where charges against PPP loan fraud have been filed by DOJ. Some examples include changing payroll figures resulting from under-the-table agreements among business owners; creating shell companies that never existed before to obtain fresh loans from unsuspecting agents; and misusing loan funds meant for other purposes aside from payroll service and utilities like rent, mortgage interest payments authorized under the program.

DOJ Collaborates with Federal Law Enforcement Agencies for Identifying Possible PPP Loan Frauds

Going further on fighting against any form of illegal acquisition toward US’ resources regarding of COVID 19 fund, DOJ is committed to rooting out PPP loan fraud as soon as possible with the cooperation of other federal law enforcement agencies. With the goal to investigate and prosecute any company or person known to have unlawfully utilized PPP loans proposed under the program, DOJ collaborates with other agencies such as Small Business Administration Office of Inspector General (SBA-OIG), Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Federal Bureau of Investigation (FBI), and Internal Revenue Service Criminal Investigations (IRS-CI) to ensure their goals are realized.

Potential Defenses for Companies or Individuals Accused of PPP Loan Fraud

In cases concerning individuals, or firms accused of PPP loan fraud, they will undoubtedly face severe legal implications if left unarmed without expert legal defenses. In this regard, our attorneys represent clients accused of PPP loan fraud, and there are various potential defenses that can be argued, depending on the nature of the charges. These defenses include compliance with PPP guidelines and regulations, lack of intent to defraud, among others that could tilt judgment towards your favor.

Possible Charges in Federal PPP Loan Fraud Investigations

PPP loan fraud may not be a felony under Coronavirus Aid, Relief, and Economic Security Act (CARES) Act which established PPP but could trigger civil or criminal allegations under different federal statutes like making false statements to Small Business Administration (SBA), bank fraud; wire fraud; aggravated identity theft; tax evasion; making false declarations to federal agents; conspiracy implications; attempt at violators under false claims act.

Conclusion: Why Lawyers for Businesses Involved in Possible DOJ Investigation must matter

DOJ’s investigations into fraudulent activities involving utilizing COVID-19 US fund is no going concern since its seriousness could warrant unsafe actions against PACs known involved. The federal agency takes seriously its mandate and commitment towards investigating all forms and patterns concerned with improper use cases associated with Covid-19 funds allotted businesses through Paycheck Protection Program(PPP). Every company or individual currently facing DOJ allegations of fraudulent activity becomes crucial to securing experienced Attorneys within the Todd Spodek Law Firm to achieve a successful representation following legal proceedings.