Free Consultations & We're Available 24/7
WE'RE A BOUTIQUE LAW FIRM.
TRUST 50 YEARS OF EXPERIENCE.
WE SERVICE CLIENTS NATIONWIDE.
So your probably thinking that maybe what you put on that PPP application wasn’t really “lying” – just creative interpretation or minor exaggeration. Maybe you think only completely fake businesses get prosecuted. Or maybe your hoping the government only cares about huge lies, not small “mistakes” on the forms. Look, we get it. Your desperately trying to convince yourself that what you did doesn’t count as criminal fraud. But here’s the devastating truth – EVERY false statement on a PPP application is a federal felony punishable by up to 30 YEARS in prison, and the government is prosecuting even the smallest lies!
YES, absolutely YES! Lying about your employee count is one of the MOST prosecuted forms of PPP fraud! The Department of Justice is aggressively pursuing anyone who inflated there employee numbers, even by just one or two people! This isn’t a minor technicality – its a federal felony under 18 U.S.C. § 1014!
Maybe you had 5 employees but claimed 10 to get a bigger loan. FRAUD! Had 2 part-timers but counted them as full-time? FRAUD! Included yourself as an employee when you weren’t on payroll? FRAUD! Listed family members who didn’t really work there? FRAUD! Every single misrepresentation about employees is being prosecuted!
The government cross-references your PPP application with state unemployment records, IRS payroll tax filings, and workers compensation reports. If your PPP application shows 10 employees but your quarterly 941 forms show 5, your CAUGHT! They have automated systems flagging these discrepancies, and each false employee claim can be a separate criminal count!
Inflating payroll is DEVASTATING fraud that prosecutors love because its so easy to prove! They simply compare your PPP application to your tax returns. Said you had $500,000 in payroll but your 2019 tax return shows $200,000? That’s bank fraud, wire fraud, and false statements – up to 30 years PER COUNT!
And here’s what people don’t understand – ANY inflation counts as fraud! Rounded $95,000 up to $100,000? FRAUD! Included contractor payments as payroll? FRAUD! Added in future raises that hadn’t happened yet? FRAUD! Counted gross payroll instead of net? Still FRAUD! There’s no “de minimis” exception for small lies!
The SBA Office of Inspector General uses sophisticated data analytics to catch payroll inflation. They compare your PPP forgiveness application, loan application, IRS forms, state tax filings, and bank records. Even a 10% inflation triggers criminal investigation. We’ve seen people prosecuted for inflating payroll by as little as $20,000!
Using PPP funds for personal expenses isn’t just fraud – its MULTIPLE felonies! The loan documents specifically state the funds must be used for approved business expenses. Spend it on anything else? That’s wire fraud, bank fraud, money laundering, and conversion of government property!
Bought a car with PPP money? Federal crime! Paid your mortgage? Crime! Went on vacation? Crime! Gambling? Crime! Even using it for legitimate business expenses that WEREN’T approved (like buying new equipment) is criminal fraud! The government doesn’t care if you “needed” the money – unauthorized use is fraud, period!
And they WILL find out! Banks report all transactions over $10,000. Credit card companies share purchase data. Social media posts show your new toys. That Lamborghini you bought? The DMV reports high-value purchases to the IRS. That Miami Beach vacation? Hotel records get subpoenaed. Every dollar is tracked!
Claiming your business was operational when it wasn’t is MASSIVE fraud! The PPP explicitly required businesses to be in operation on February 15, 2020. If your business was closed, suspended, or not really functioning, getting a PPP loan is automatic fraud!
We’re seeing prosecutions for people who had “businesses” that existed only on paper. Had an LLC but no actual operations? FRAUD! Business was dormant but you reactivated it for PPP? FRAUD! Claimed to be self-employed but hadn’t worked in months? FRAUD! The government considers these the WORST lies because the entire application was fraudulent!
The Criminal Division’s Fraud Section specifically targets dormant business fraud. They check state business registrations, licensing boards, tax filings, and bank activity. If your business had no revenue in 2019 but suddenly needed a PPP loan in 2020? Red flag! No business insurance? No business bank account? No business website? Your going to federal prison!
The forgiveness application is a SECOND opportunity to commit federal crimes! Every false statement on your forgiveness application is a separate felony from the original loan application. So if you lied twice, you face DOUBLE the charges and double the prison time!
Common forgiveness lies that trigger prosecution: Claiming you maintained employment levels when you didn’t. Saying you spent funds on payroll when you didn’t. Providing fake documentation. Inflating utility costs. Including ineligible expenses. Each lie is a new 30-year felony!
And here’s what’s terrifying – even if your original application was legitimate, lying on forgiveness makes you a federal criminal! We’ve seen clients with real businesses who qualified for PPP but then lied about how they spent it. Result? Federal prison! The forgiveness application isn’t a formality – its a sworn federal document!
The government’s position is brutal: there are NO innocent mistakes on federal loan applications! Prosecutors argue that you signed under penalty of perjury, so every error is potentially criminal. “I didn’t understand the form” isn’t a defense. “My accountant made a mistake” isn’t a defense. “I thought it meant something else” isn’t a defense!
To convict you of fraud, prosecutors must prove intent to deceive. But here’s the thing – they infer intent from the lies themselves! If you claimed 50 employees when you had 5, prosecutors say “nobody accidentally adds 45 employees.” If you inflated payroll by 300%, they say “that’s not a math error, that’s intentional fraud!”
The IRS Criminal Investigation division testified that they assume ANY material misstatement was intentional unless proven otherwise. The burden shifts to YOU to prove your innocence. And good luck proving you “accidentally” doubled your payroll or “forgot” you had no employees!
Identity theft for PPP loans carries MANDATORY federal prison time! Using someone else’s Social Security number, EIN, or personal information isn’t just fraud – its aggravated identity theft under 18 U.S.C. § 1028A, which carries a MANDATORY 2-year consecutive sentence!
This includes using fake employees’ information, stolen identities, or even family members’ information without permission. Created fake employees with made-up Social Security numbers? That’s identity theft PLUS fraud! Used your elderly parent’s information? Identity theft! Bought identities on the dark web? Multiple felonies!
The Secret Service and FBI have task forces specifically hunting identity theft in PPP cases. They use facial recognition on submitted documents, cross-reference Social Security Administration death records, and track IP addresses. One defendant just got 10 years for using dead people’s identities for PPP loans!
The PPP application asks if you’re subject to criminal charges or on probation/parole. Lying about this is a SEPARATE federal crime! Even if everything else on your application was true, lying about criminal history is automatic fraud that prosecutors ALWAYS charge!
We’ve seen defendants with legitimate businesses who qualified for PPP get federal prison time SOLELY for checking “no” when they had pending charges. One client had a 10-year-old conviction he didn’t disclose – got 18 months in federal prison just for that lie! The government considers this “fraud upon fraud” and seeks enhanced sentences!
And they ALWAYS check! The FBI runs every PPP applicant through NCIC criminal databases. State conviction from 20 years ago? They’ll find it. Pending traffic warrant? Shows up. Juvenile record you thought was sealed? They see it. Any criminal history lie gets you prosecuted!
There is NO minimum! The DOJ has prosecuted PPP fraud for loans as small as $10,000! The government’s position is that ANY fraud is worth prosecuting to “send a message.” Small lies, big lies – they’re all federal felonies!
Recent 2025 prosecutions include: A restaurant owner who inflated revenue by $50,000 – prison. A contractor who claimed one fake employee – prison. A salon owner who rounded up payroll by $15,000 – prison. The amount doesn’t matter; the LIE matters!
The Pandemic Response Accountability Committee tracks every prosecution to ensure consistent enforcement. They don’t want people thinking small fraud is safe. Every lie, every misstatement, every exaggeration is being prosecuted to maintain deterrence!
WARNING: EVERY false statement on PPP applications = 30-YEAR FELONY!
Employee lies, payroll inflation, ANY misrepresentation gets prosecuted!
Call 212-300-5196 NOW if you made ANY questionable statements!
Look, we need you to understand that the government views EVERY lie on a PPP application as federal fraud. It doesn’t matter if it was small, unintentional, or you thought everyone was doing it. Inflating employees by one person? Fraud. Rounding up payroll? Fraud. Using funds for anything unauthorized? Fraud. Each false statement is a separate felony carrying up to 30 years in prison.
The DOJ and SBA are using sophisticated data analysis to catch every lie. They compare your application to tax returns, state filings, bank records, and dozens of databases. They’re prosecuting loans as small as $10,000 and lies as minor as single employee inflation. There’s no safe harbor for small lies – every false statement risks federal prison.
Your only protection is immediate legal representation from attorneys who understand federal fraud prosecution. The difference between proving “mistake” versus “intent” could be decades of your life. Don’t wait until federal agents are analyzing your application. Call us immediately at 212-300-5196 and let us protect you from prosecution for statements you might not even realize were criminal!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS