NEW JERSEY CRIMINAL LAWYERS

Louisiana PPP and EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) has been a significant relief effort for small businesses amid the COVID-19 pandemic. Still, unfortunately, the federal loan program has also captured the unwarranted attention of scammers who have misused these loans by using them for ineligible expenses or obtaining them fraudulently. As a result of this, the U.S. Department of Justice (DOJ) launched investigations to uncover PPP loan fraud, and numerous individuals and companies are facing charges.

The DOJ is Serious about Prosecuting PPP Loan Fraud
It is essential to know that the DOJ is committed to cracking down on those who have committed PPP loan fraud since there were substantial losses attributed to such fraudulent activities targeting the program; they began pursuing those they suspect of using false documentation when applying for PPP loans or obtaining PPP funds improperly.

The DOJ is Actively Charging PPP Loan Fraud Cases
Many people risk facing DOJ investigation inevitably when involved in PPP loan fraud, as revealed through several indictments laid down so far. These charges include creating shell companies for PPP loan applications, falsifying payroll information on borrower applications and certifications required for receiving loan forgiveness among many other unacceptable offenses that show a commitment by DOJ towards punishing any offenders engaged in such actions.

Collaboration with Other Federal Law Enforcement Agencies
DOJ isn’t acting alone in their efforts to combat PPP loan fraud. They are collaborating with other federal law enforcement agencies, such as Federal Bureau of Investigation (FBI), Internal Revenue Service Criminal Investigations (IRS-CI), Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), and U.S. Small Business Administration Office of Inspector General (SBA-OIG). The goal here is simple; identify and investigate all those who illegally took advantage of the Paycheck Protection Program loans.

Defenses Against PPP Loan Fraud Charges
If you find yourself under investigation by DOJ for committing fraudulent actions against the Paycheck Protection Program’s spirit and be accused of PPP loan fraud, such circumstances carry severe consequences. In this situation consulting an experienced lawyer is critical to determine the course of action. Some potential defenses to these allegations include:

Demonstrating Paycheck Protection Program Compliance
Keeping in compliance with the terms and conditions of the PPP, such as keeping accurate employment records and following proper procedures on documenting how loan proceeds were spent, can go a long way in proving that you or your company have not violated any rules.

Lack of Intent to Defraud
Federal criminal liability typically requires intent to defraud. A defense strategy that could apply here would be a lack of intent, one mistakenly obtained the loan or used funds improperly unknowingly which could act as a proof towards an unintentional offense.

Potential PPP Loan Fraud Charges to Face
Though there are no specific penal provisions articulated for PPP loan fraud under CARES ACT, existing federal statues under which possible civil and criminal penalties may be levied. These charges include but are not limited to false claims act violations, conspiracies; bank frauds; wire frauds; aggravated identity thefts; tax evasions among others.

Conclusion
Being investigated by DOJ for committing fraudulent actions against the Paycheck Protection Program would trigger severe consequences for individuals as well as business establishments. Due diligence should be sought immediately rather than panic since seeking advice from qualified legal counsel will help minimize damages in cases where these accusations may incur significant losses.