NEW JERSEY CRIMINAL LAWYERS

Jacksonville PPP and EIDL Loan Fraud Lawyers

Consequences and Potential Defenses in U.S Department of Justice (DOJ) Investigations for PPP Loan Fraud

The onset of COVID-19 has resulted in several small businesses experiencing financial difficulties, leading to the Paycheck Protection Program’s launch. As a result, the federal government funds this program by providing forgivable loans. However, the program is vulnerable to fraudulent activities such as suspicions of fraudulent loan requests and unauthorized use of PPP loan funds, leading to an aggressive investigation by the DOJ into cases of PPP loan fraud.

Individuals or companies found guilty of PPP loan fraud face severe consequences such as enforcement of criminal and civil charges depending on the crime’s nature. Such individuals may also face heavy fines or lengthy prison sentences because they have committed fraud against a fund designed to help Americans through challenging times. Therefore, it is crucial to comprehend the gravity of accusations since these ramifications are serious.

Several lawsuits have been filed against individuals or companies who used fraudulent means to acquire PPP loans. Employees who created shell companies and falsified payroll information have been charged with inappropriate use of PPP loan funds. The DOJ’s continued filing against such individuals serves as a warning that prosecution could arise irrespective of how small or large the crime committed was.

The DOJ is not relenting in its efforts towards bringing every form of PPP loan fraud under scrutiny. This commitment led them to combine efforts with other federal law agencies such as Small Business Administration Office (SBA-OIG), Federal Deposit Insurance Corporation Office (FDIC-OIG), Federal Bureau of Investigation (FBI), and Internal Revenue Service Criminal Investigations (IRS-CI) for justice enforcement.

Suppose you’re under DOJ investigation for alleged PPC loan fraud; there’s still hope – skilled attorneys can level defenses resulting in dismissals or lesser sentences. One possible argument in your defense is compliance with PPC guidelines/restrictions by lawfully acquiring PPC loans legally documented utilization of these funds and separate accounts specifically designated for that purpose.

Additionally, lack of intent to defraud or make false claims can act as a possible defense. Lack of intent is a critical element for PPC loan fraud charges. Therefore, if an individual unknowingly submitted false information that resulted in a PPC loan or fraudulently certified a PPP loan forgiveness form, the alleged lack of intent could be argued on your behalf.

If under DOJ investigation for alleged PPP loan frauds, it is essential to note that such charges trigger numerous federal statutes such as making False Statements to the Small Business Administration (SBA) (18 U.S.C. § 1014), Bank Fraud (18 U.S.C. § 1344), Wire Fraud (18 U.S.C. § 1343), Aggravated Identity Theft (18 U.S.C. § 1028A), Tax Evasion (26 U.S.C. §7201), and Making False Statements to Federal Agents (18 U.S.C. §1001). Other possible penalties include Conspiracy into defrauding the Small Business Administration by submitting fraudulent loan applications or certification forms resulting in conspiracy charges and False Claims Act Violations leading to federal criminal or civil offenses.

In conclusion, the DOJ’s PPP loan fraud investigations aim to expose individuals and companies attempting to exploit their funds towards fraudulent activities and bring them to justice. However, allegations of PPP loan fraud do not necessarily signify doom for the accused parties since skilled attorneys’ endeavors could result in lesser sentences or even dismissals of accusations presented against them.

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(18 U.S.C.§1001)

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Conspiracy (PPC loan fraud attempts through fraudulent loan applications and certification forms submissions lead to conspiracy charges (18 U.S.C.§371, and 18 U.S.C. §1349)).

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(False Claims Act Violations (violation of the False Claims Act results in federal criminal or civil offences (31 U.S.C. §§3729-3733)).

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