NEW JERSEY CRIMINAL LAWYERS

Milwaukee PPP and EIDL Loan Fraud Lawyers

Protect Your Business from DOJ Investigation for PPP Loan Fraud: What You Should Do

The COVID-19 pandemic has had a significant impact on businesses worldwide, and the Paycheck Protection Program (PPP) was created to provide financial assistance to companies facing economic difficulties. Unfortunately, some opportunistic fraudsters are taking advantage of this situation and engaging in PPP loan fraud, causing the Department of Justice (DOJ) to investigate and prosecute any cases of suspected misconduct.

If you find yourself in a situation where you as a business owner or executive are being charged with PPP loan fraud, it is crucial to engage the services of a competent criminal defense lawyer who can protect your legal rights. Even if you think that the prosecution’s case against you is weak or that the allegations are baseless, failing to take the matter seriously can lead to severe penalties, restitution orders, and a criminal record.

The DOJ Takes PPP Loan Fraud Seriously

The DOJ has intensified its investigation of PPP loan fraud cases filed against persons involved in falsifying loan applications or making unauthorized use of PPP funds. Along with other federal law enforcement agencies like FBI and IRS-CI, the DOJ is making concerted efforts to prosecute fraudsters exploiting this critical financial relief aid.

Furthermore, several other fraudulent schemes related to PPP loans have come up, including shell company and payroll information falsification, using PPP funds for personal expenses, and attempting to obtain multiple PPP loans.

Collaboration with Other Federal Agencies in Pursuing PPP Loan Fraud

In combating cases of PPP loan frauds, the DOJ has formed alliances with various federal agencies such as SBA-OIG,FBI,and FDIC-OIG.These collaborations have empowered them by mobilizing more resources and broadening their investigations against those responsible for perpetrating such fraudulent acts.

Possible Charges in PPP Loan Fraud Investigations

PPP loan fraud charges can trigger various federal statutes even though The CARES Act does not contain penal provisions relating directly(quote source). It is still open for the DOJ to invoke other federal laws to prosecute offenders. Some of the charges that individuals or businesses could face following investigations into PPP loan fraud include:

– Making false statements to the Small Business Administration (SBA)
– Making false statements to an FDIC-insured bank
– Bank fraud
– Wire fraud
– Tax evasion
– Making a false statement to federal agents and conspiracy.

Defense Strategies During Investigations of PPP Loan Fraud

Getting competent legal representation proves essential when facing allegations of PPP loan fraud. Your criminal defense attorney can present several defenses that could counter allegations of PPP loan fraud, as highlighted below:

Paycheck Protection Program Compliance: It is necessary to document adequately all compliance measures established under the Paycheck Protection Program (PPP). Proper compliance can allow you to resolve your case sooner, thereby producing a favorable outcome for you and your business.

Lack of Intent to Defraud: Proving that your submission was not intentionally fraudulent often serves as an effective argument when defending against PPP loan fraud allegations. This asserts that if you didn’t have any malicious intent in submitting fraudulent loan applications or misusing PPP funds, then you stand a better chance of achieving a favorable outcome in court.

Conclusion

Sufficient legal representation is vital in any PPP loan fraud case. Hiring experienced attorneys who can identify any weaknesses in your case, defend your legal rights, and mount vigorous defense strategies in court can mean the difference between success and failure. At Spodek Law Group, we pride ourselves on offering top-notch legal representation services and thorough investigations. If you face allegations of PPP loan fraud, get in touch with us today for consultation as the disciplinary measures can be severe.