NEW JERSEY CRIMINAL LAWYERS

Wisconsin PPP and EIDL Loan Fraud Lawyers

Protect Your Company from DOJ Investigations and Penalties for PPP Loan Fraud

The COVID-19 pandemic led to the rollout of the Paycheck Protection Program (PPP), which aimed to provide financial support through federally backed and forgivable loans to small and medium-sized businesses and individuals who struggled to maintain their workforce. However, many fraudulent individuals and companies misused the program, leading to millions of dollars obtained illegally. Due to this, the U.S. Department of Justice (DOJ) launched several investigations on PPP loan fraud cases based on laws such as bank and wire fraud, false statements, reports or conspiracy. If you are a company or individual suspected of unlawful PPP funding, you could face severe criminal charges that could lead to imprisonment, hefty fines, and loss of eligibility for participating in any program.

The DSP Takes PPP Loan Fraud Seriously

The DOJ believes that these fraudulent actions are an attack on a program designed to help those who need it the most during the aftermath of the pandemic. Because of that belief and the negative impact it would have on legitimately struggling businesses’ stability, they take each case very seriously.

Multiple Federal Agencies Join Forces in These Investigations

Several federal agencies work alongside the DOJ towards uncovering companies and individuals who took advantage illegally created by using funds wrongfully allocated through PPP loans. These federal agencies include:

1. U.S. Small Business Administration Office of Inspector General
2. Federal Deposit Insurance Corporation Office of Inspector General
3. Federal Bureau of Investigation
4. Internal Revenue Service Criminal Investigations

Various Potential Defenses Against PPP Loan Fraud Charges

If your company comes under suspicion for violating allegations against taking out a loan fraudulently based on PPPs requirements, Some defenses may be helpful when proving your case’s validity.

Your first defense should show your compliance with all aspects of the law if you received loan funds lawfully following protocol without endangering others associated with your principal activity directly.

Attesting to documentation proving the proper use of funds allocated correctly could help clear any doubts around you if miscommunicated information or lack of information made it difficult for DOJ to disprove.

If you are charged with allegations regarding PPP loan fraud, disputes could be raised on the potential grounds of a “lack of intent to defraud”. To prove such an issue in court, one must show no purposeful act(s) of fraud have been observed from your business or individual capacity.

PPP Loan Fraud Penalties

Penalties for unlawful actions under this program can trigger federal charges that come from previous violations that were subject to pre-existing acts such as wire and bank fraud, making false SBA statements/reports or Tax evasion. Criminal penalties that arise may result in steep fines, loss of eligibility for participating in further programs and even jail time.

How to Safeguard Yourself From PPP Loan Fraud Investigations

Considering how disruptive PPP loan scams can be, finding a competent legal representative who understands all aspects of these cases is essential. This person’s understanding assists in navigating the process appropriately and ensuring every essential element is dealt with properly.

In conclusion, if you suspect your organization is liable to DOJ allegations about PPP loan fraud activities committing then protecting yourself through exploring defenses available is crucial as the DOJ strives vigorously towards prosecutions which could damage business prospects beyond repair.