Last Updated on: 25th February 2023, 05:32 pm

Contacted About a PPP Loan Fraud Investigation?

If you or your business has been contacted about a PPP loan fraud investigation, it is important to act quickly and seek legal assistance. PPP loan fraud investigations have been on the rise across the country, and federal prosecutors and criminal investigators are actively looking for possible PPP loan fraud and other CARES Act violations. At Spodek Law Group, our attorney Todd Spodek and his team can help guide you through the investigation process and work to protect your rights and interests.

What is PPP Loan Fraud?

PPP loan fraud occurs when an individual or business submits false information in an application or certification for a loan under the federal Paycheck Protection Program (PPP). The PPP was created to help companies stay in business during the coronavirus pandemic by providing forgivable loans to cover payroll and operating expenses. However, businesses must meet strict eligibility criteria and abide by strict requirements and limits on how they can spend the funds.

What Happens During a PPP Loan Fraud Investigation?

During a PPP loan fraud investigation, federal prosecutors and investigators focus on determining whether charges should be brought against someone for violating one or more of the strict requirements of the PPP loan program. Individuals and businesses may face serious criminal and civil penalties for PPP loan fraud, including charges for wire fraud, bank fraud, false statements to a financial institution, and conspiracy to commit fraud.

How Do I Respond to a PPP Loan Fraud Investigation?

If you have been contacted by a federal agent or official about a PPP loan, it is crucial to seek legal representation before discussing your loan application or business with them. At Spodek Law Group, our team can help you navigate the investigation process, protect your rights, and work to steer the case towards a civil resolution rather than criminal charges.

What Can Spodek Law Group Do to Help?

Our team has extensive experience helping business owners navigate PPP and EIDL loan fraud investigations. When we are hired to represent a client, we take several steps to protect their interests and work towards a favorable outcome. This may include obtaining all loan applications and supporting documents, gathering and preserving relevant business documents, interviewing financial advisors and employees, and presenting arguments for mitigation or mistake to the government agents or prosecutor.

What Constitutes PPP Loan Fraud?

PPP loan fraud can take many forms, including loan stacking, misrepresenting information on a loan application, making fraudulent loan certifications, using PPP funds for ineligible or fraudulent purposes, and misrepresenting or concealing information during a PPP audit or investigation. To prove compliance with PPP requirements, it is important to thoroughly document all financial records and expenses.

At Spodek Law Group, our attorney Todd Spodek and his team are dedicated to helping individuals and businesses navigate PPP loan fraud investigations and protect their rights and interests. Contact us today to learn more about our services and how we can help you.

If you find yourself in a PPP loan fraud investigation, it can be difficult to know how to respond. The stakes are high, and you need to be extremely careful not to say or do anything that could make matters worse. This is where an experienced attorney like Todd Spodek can be invaluable.

As a seasoned federal defense attorney, Todd Spodek has helped many clients navigate PPP and EIDL loan fraud investigations. His approach is proactive and thorough, and he has a track record of success in helping his clients avoid criminal charges.

If you have been contacted by a federal agent or another official about a PPP loan, your first call should be to the Spodek Law Group. Our team of experienced attorneys, paralegals, and independent consultants will immediately contact any investigator or government agent involved in the matter to make sure there is no further contact with our client. We will also contact any financial institution that may be holding funds belonging to the business or individual involved.

We will then take several additional steps, depending on the facts of the specific case and the status of the investigation. Our first step is to gather all loan applications and all supporting documents from the business to review for any alleged errors. We will also gather and preserve all relevant business documents that may support the need for the loan or the use of the funds received. If a CPA, accountant, or financial advisor was used or consulted in applying for the loan, we will interview them.

With the business owner’s permission and consent, we will also interview any relevant employees who may be able to support the need for the loan or the use of funds. We will discuss the case with a forensic accountant regularly consulted by our firm to review the company’s financials and provide an opinion on the information contained in the loan application.

Finally, we will present any available arguments for mitigation or mistake to the government agents, investigators, or prosecutor to structure a payback or other resolution of the matter, if appropriate.

In addition to providing a proactive defense, our attorneys will also help you take common-sense steps to protect yourself and your business. These steps include gathering all your business and personal financial records and making a digital copy of them, not throwing away or shredding any business records, and letting all your employees know that they can report their suspicions about PPP fraud to management without fear of retaliation.

If you are concerned about possible PPP fraud charges, don’t hesitate to contact the Spodek Law Group. Our experienced attorneys can help you navigate the complex world of federal investigations and prosecutions, and ensure that your rights are protected every step of the way.