NEW JERSEY CRIMINAL LAWYERS

Wyoming PPP and EIDL Loan Fraud Lawyers

GUIDE TO MANAGING DOJ INVESTIGATIONS FOR PPP LOAN FRAUD ACCUSATIONS

The COVID-19 pandemic was an economic disaster for several small and medium businesses, leading to the loss of jobs for their employees. However, the PPP loan was a relief package launched by the Paycheck Protection Program to aid these small companies financially by ensuring that their staff continued to receive paychecks. The benefits of this program were misused by fraudulent individuals and firms, causing millions of dollars worth of swindles from government aid. Consequently, the DOJ is determined to combat PPP loan fraud cases and prosecute those accused using various laws such as bank fraud, wire fraud, conspiracy, false statements and reports among others.

Those accused of PPP loan fraud need to know what they are up against when being investigated by the DOJ. In light of this information, let us take a closer look at some vital details on this topic.

#### Seriousness Of Investigations Regarding PPP Loan Fraud Cases By The DOJ

The Department of Justice considers PPP loan fraud as an attack on programs designed to aid those who suffered financially during the ongoing pandemic. As a result, the DOJ is very serious about finding fraudulent loans submitted alongside unauthorized use of funds paid through PPP loans or fake certifications meant for loan forgiveness. Thus people accused with these charges should expect a thorough investigation conducted by federal authorities.

#### Multiple Charges Being Filed Against Defendants

Several defendants have already been charged in several cases related to PPP loan frauds based on numerous allegations such as falsifying payroll information after creating shell accounts or even using public funds for personal luxurious activities. Through these cases, DOJ has made it clear that any person found guilty will be held accountable regardless of attempts used in concealing such fraudulent transactions.

#### Collaborations Between Multiple Federal Agencies

DOJ works very closely with other governmental agencies like the Federal Deposit Insurance Corporation Office of Inspector General, Small Business Administration Office of Inspector General., Internal Revenue Service Criminal Investigations, and the Federal Bureau of Investigation. These federal agencies work collaboratively by sharing resources and expertise to combat PPP loan frauds effectively.

#### Possible Defense Strategies Employed Against PPP Loan Fraud Accusations

Facing a PPP loan fraud accusation is very daunting for individuals or organizations accused, but the following defenses act as their first line of defense:

#### Complying With The Paycheck Protection Program Requirements

The demonstration of PPP compliance could present an individual or company with their first line of defense when facing PPP loan fraud allegations. If you properly obtained a PPP loan and documented the appropriate use of its funds, providing proof of compliance could lead to a speedy resolution of legal matters.

#### Lack Of Intent To Defraud

Lack of intention to defraud is another defense that can be raised by individuals wrongly accused. Proving lack of intent to commit any fraudulent activity when obtaining the PPP loan despite being ineligible, using funds for unintended purposes, or even submitting false forgiveness certificates can lower possible legal repercussions.

#### Federal Penalties For PPP Loan Fraud Charges

PPP loan fraud cases may also be prosecuted under pre-existing laws such as wire and bank fraud, making false statements and reports to the Small Business Association, tax evasion leading to severe consequences like imprisonment alongside hefty fines enforced and loss of business establishments due to ineligibility under laws.

DOJ investigations regarding alleged cases related to PPP loans resulted in a lot of disruption in the lives of several people and businesses affected. As such, those who feel wrongfully accused should seek adequate legal assistance from competent lawyers to provide guidance through this process and help mount a proper legal defense.