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What You Must Remember if Under a DOJ Investigation for PPP Loan Fraud
PPP loans served to offer financial support in the form of forgivable loans to small business owners whose companies suffered due to the COVID-19 pandemic. However, fraudulent activities have resulted in an increase in DOJ investigations, as it is highly expected that several recipients were wrongfully granted loans they did not qualify for, while others used PPP funds for inappropriate and personal expenses. This led to criminal charges against individuals and companies receiving PPP loans. This article explains what you must know if under investigation by the U.S. DOJ concerning PPP loan fraud.
The DOJ places high importance on prosecuting cases related to PPP loan frauds. They prosecuted several cases where shell companies came about through using falsified payroll information aimed at defrauding the program or where loan funds were improperly utilized. The DOJ works with other federal agencies such as SBA-OIG, FDIC-OIG, FBI, and IRS-CI to track down and prosecute individuals and businesses involved in fraudulent schemes.
It’s essential knowledge that you need to be aware of when investigated for PPP loan fraud: the federal government is taking action against such cases already. Other federal agencies are rallying forces with the DOJ toward identifying and prosecuting wrongdoing individuals.
Being accused of PPP loan fraud raises possible defenses that you can present in your case. One example defense strategy is the “Paycheck Protection Program Compliance,” showcasing compliance with terms while thoroughly documenting progress, segregating from other accounts, among others. Lack of intent to defraud is another viable defense strategy; however, it should come with caution regarding the provision of information that could expose you to further incrimination inadvertently.
In addition, it’s important always to know what potential charges you may face when being investigated for PPP loan fraudt. Despite no specific penalties present within CARES Act itself, charges derive from invoking pre-existing federal statutes that cover both civil and criminal offenses. Charges arising from PPP loan fraud can include making false statements to the SBA, bank fraud, wire fraud, tax evasion, Making False Statements to Federal Agents, conspiracy, Attempt, Aggravated Identity Theft, and violations in the False Claims Act.
If you must face a DOJ investigation for PPP loan fraud cases or other federal offenses concerning finances, it’s advisable to seek consultation and guidance from an experienced federal defense attorney. The seasoned attorneys at Todd Spodek Law will provide clients with a robust defense strategy capable of minimizing potential consequences while protecting their rights with utmost legal assistance.
Potential Defenses
– Paycheck Protection Program Compliance
– Lack of Intent to Defraud
Possible Charges
| Charges | Statutes |
|---|---|
| Making False Statements to the Small Business Administration (SBA) | 18 U.S.C § 1014 |
| Bank Fraud | 18 U.S.C § 1344 |
| Making False Statements to an FDIC-Insured Bank | 18 U.S.C § 1014 |
| Wire Fraud | 18 U.S.C § 1343 |
| > >26 U.S.C. § 7201> | >>> >18 U.S.C § 1028A | >>> > | Making False Statements to Federal Agents | 18 U.S.C § 1001 | Conspiracy | 18 U.S.C § 371 and 18 U.S.C § 1349 |
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