NEW JERSEY CRIMINAL LAWYERS

Kentucky PPP and EIDL Loan Fraud Lawyers

DOJ Pursuing PPP Loan Fraud with a Vengeance

The Paycheck Protection Program (PPP) was a well-intentioned program initiated by the US Government to provide funds to individuals and companies facing financial difficulties caused by the pandemic. However, fraudsters have taken advantage of the situation, exploiting loopholes in the system to obtain PPP loans illegally or misuse loan funds. In response, the Department of Justice (DOJ) has launched an aggressive campaign against all suspected instances of PPP loan fraud.

The DOJ believes that fraudulent activities related to PPP loans pose a significant threat to the integrity of the program. Therefore, they are leaving no stone unturned in their efforts to uncover fraudulent claims and prosecute those responsible for them. As affirmed by a recent DOJ press release, “Our office will be aggressive in targeting anyone who defrauds this critical program.”

Notably, many individuals and businesses have already been charged with various acts of PPP loan fraud, including falsification of payroll information, creating shell companies to obtain loans fraudulently, using PPP loan funds for personal expenses, and applying for multiple loans deceitfully. The DOJ has also joined forces with other federal law enforcement agencies like the Small Business Administration Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, Federal Bureau of Investigation, and Internal Revenue Service Criminal Investigations to combat PPP loan fraud effectively.

PPP Loan Fraud Investigations Potential Defenses

If you’re already under investigation for suspected PPP loan fraud or forgery charges in connection with COVID-19 assistance programs like EIDLs or Cares Act Grants Application you will need an experienced attorney’s guidance. A skilled legal professional can help explore potential defenses that could be available during your case’s prosecution stage.

For example:
Compliance with Payment Protection Program: Through evidence that your business obtained a PPP loan lawfully while maintaining proper documentation for its usage that shows compliance established could lead to a quick resolution.
Additionally,
Lack of intent to defraud: Generally in federal criminal culpability, lack of intent to defraud is a defense claim. If you did not intend to deceive the authorities but rather obtained a PPP loan by mistake, misused PPP funds unintentionally or submitted fake forgiveness certification, it could be your line of defense.

However, it’s crucial to exercise caution before voluntarily providing any information related to the case to the DOJ. Any incriminating information disclosed during the PPP loan fraud investigation can enhance the risk of prosecution further.

PPP Loan Fraud Investigations Potential Charges and Penalties

The legal ramifications of facing DOJ investigations over suspected PPP loan fraud can be daunting. The consequences stemming from prosecutions because of fraudulent activity surrounding COVID-19 relief programs like EIDLs or Cares Act Grants Application are extreme; if found guilty of PPP loan fraud, individuals and businesses can face several penalties:
• Up to 30 years imprisonment
• Fines up to $1,000,000
• Additional monetary penalties and damages as determined by a court of law
• Forfeiture of assets (including real and personal property)
• Loss of civil liberties – for example voting rights, firearms rights.

It’s worth noting that at times incidental mistakes regarding eligibility and utilisation could possibly cause potential claims under civil violations against False Claims Act statutes resulting in significant fines, damages with additional loss conditions.

In conclusion, If you receive a subpoena or criminal citation from Federal agents due to Covid-related cases such as Payroll Protection Program (PPP) fraud or Economic Injury Disaster Loan (EIDL) fraud matters – contact Todd Spodek Law Group today!

Potential Charges for PPP Loan Fraud Investigations

Table 1: Potential PPP Loan Fraud Charges and Penalties

| Charge Name | Type | Penalty |
| — | — | — |
| Making False Statements to SBA | Civil & Criminal | 5 Years Imprisonment; $250,000 Fine |
| Making False Statements to FDIC-Insured Bank | Civil & Criminal | 30 Years Imprisonment; $1,000,000 Fine |
| Bank Fraud | Criminal |30 Years Imprisonment; $1,000,000 Fine |
| Wire Fraud | Criminal |20 Years Imprisonment; $250,000 Fine |
| Aggravated Identity Theft Criminal | 2 Years Imprisonment; $250,000 Fine |
| Tax Evasion Criminal |5 years imprisonment; $100,000 fine|
| Making False Statements to Federal Agents Criminal |5 Years Imprisonment; $250,000 Fine |
| Conspiracy Criminal | 30 Years Imprisonment; $1,000,000 Fine |
| Attempt Criminal | Same as Underlying Crime |
| False Claims Act Violation Civil|$23,331 Maximum Fine per Violation + Other Penalties as Applicable|

Repercussions for PPP Loan Fraud

Table 2: Potential PPP Loan Fraud Repercussions

| Repercussion | Details &  |
| — | — |
The repercussions of committing fraud related to PPP loans are severe and can be life-changing. Companies and individuals involved in fraudulent activities and misusing PPP loans risk facing high monetary penalties and even loss of voting rights or firearms rights. Contacts Todd Spodek Law Group for legal guidance encompassing a wide range of Covid-related cases concerning the workplace environment or assistance programs like Payroll Protection Program (PPP) fraud or Economic Injury Disaster Loan (EIDL) fraud matters.