NEW JERSEY CRIMINAL LAWYERS

West Virginia PPP and EIDL Loan Fraud Lawyers

DOJ Investigations into PPP Loan Fraud: Protecting Your Rights and Interests

The Paycheck Protection Program (PPP), which began in 2020 to help companies stay afloat during the pandemic, has undergone significant scrutiny for misuse. As a result, the U.S. Department of Justice (DOJ) has been actively pursuing individuals and businesses suspected of PPP loan fraud with criminal charges. The seriousness of these charges means that anyone under investigation must have legal representation throughout the process.

Be Aware: DOJ Takes PPP Loan Fraud Seriously

If you face an ongoing DOJ inquiry for PPP loan fraud, it is critical to understand that this department takes these types of cases seriously. Criminal prosecution can result, leading to heft fines and imprisonment. The Todd Spodek Law Group understands the gravity of these charges and has experience defending clients against such accusations.

Active DOJ Participation in Identifying PPP Loan Fraud Allegations

In numerous cases, people and companies have been charged with misusing funds from their loans for personal expenditures along with fraudulent certification for loan forgiveness. Defense attorneys note that those facing an investigation can anticipate aggressive prosecution from law enforcement officials.

Assistance Through Federal Collaboration

Prosecutors benefit from collaborative efforts from other federal government agencies, including the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations (IRS-CI), U.S.Small Business Administration Office of Inspector General (SBA-OIG) , the Special Inspector General for Pandemic Recovery (SIGPR);US Postal Inspection Service which greatly enhance their ability to investigate and prosecute alleged perpetrators fully.

PPP Loan Fraud Defenses

There are several legal defenses against PPP loan fraud allegations well-suited for many cases:

Demonstration of Compliance with PPP Rules – If you can show documentation that demonstrates compliance with appropriate use(s) of funds related to your loan —for example segregating your accounts- you may establish compliance with program rules.

Lack Of Intent To Defraud – Proving no intent to defraud can be a credible defense against alleged fraud charges. It may involve demonstrating errors or oversights made in the course of making, receiving or using loan funds

Criminal charges resulting from PPP Loan Fraud Allegations

Several federal statutes may be used to secure criminal charges against those who have committed PPP loan fraud, as follows:

Criminal Charges
Explanation of Criminal Charges

False Statements to the Small Business Administration (SBA)
This charge arises when making knowingly false statements intended to influence SBA decision-making.

False Statements to an FDIC-Insured Bank
This is a measure prohibiting the submission of false statements when dealing with financial institutions such as FDIC-insured financials.

Bank Fraud
The Federal government regards creating or carrying out a scheme designed with fraudulent intent for defrauding financial institutions as bank fraud.

Wire Fraud
Wire fraud is another area addressed by federal statutes, which prohibits using electronic communications in association with any scheme aimed at committing fraud.

Aggravated Identity Theft
A felony crime whereby someone who knowingly transfers, possesses or uses another’s personal identification information in connection with specific types of serious offenses, like wire andevenbankfraud,may face prosecution.

Tax Evasion
PPP loan fund comprises income; since it qualifies as taxable income under US law,the Internal Revenue Service does not take kindly tax evasion methods meant to avoid payingback taxes.

Making False Statements to Federal Agents
The statute intends to hold accountable anyone materially falsifying their representation during a PPP audit/interview conducted by a federal agency seeking information on your company that is relevant for investigating allegations related to PPPLoanFraud . Prosecution may ensue if found guilty.

Conspiracy
Permits prosecuting several individual authors of attempted fraudulent schemes involving cooperation and malfeasance goals aimed at stealing PPP loans’ benefits.

Attempt
This charge applies to planning and execution stages—if an attempt fails during application approval or withdrawing money from PPP accounts.

False Claims Act Violations
A False Claims Act enforcement could initiate whenever an individual or business entity that provides incorrect information with the intent to defraud a federally supported program.

Conclusion

If you’re facing allegations of PPP loan fraud or even criminal charges, it’s paramount to seek professional legal counsel. The Todd Spodek Law Group is available to help protect your rights and interests as law enforcement officials actively prosecute alleged violators.