As the world navigates through the unprecedented challenges posed by the COVID-19 pandemic, small businesses have been hit particularly hard. To provide urgent financial relief, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which authorized over $950 billion in forgivable loans through the Paycheck Protection Program (PPP). These loans were intended to help small businesses maintain their workforce, have access to working capital and keep operations running normally.

However, as the government began distributing these funds, it soon became apparent that a significant portion of the money was obtained fraudulently. Parties who wouldn’t otherwise qualify for a loan were able to obtain funds through various acts of fraud, including false representations on loan applications, loan stacking, fraudulent loan certification, using funds for ineligible purposes, and concealing or misrepresenting information during audits.

In response, the government has launched an aggressive campaign to investigate and prosecute these cases. The Department of Justice has dedicated entire sections to these investigations, and the penalties for PPP loan fraud can be severe. Conviction may result in severe fines, home detention, community confinement, paying the cost of prosecution, forfeitures, restitution, supervised release, and lengthy imprisonment. For immigrants, the consequences of a fraud conviction can be even more severe, as fraud involving more than $10,000 is considered an aggravated felony and a crime involving moral turpitude.

If you are facing PPP loan fraud charges, it’s essential to retain an experienced criminal defense lawyer as soon as possible. Our law firm will gather all the necessary information, including all the evidence the government has against you, so we can review whether you have a strong defense against any allegations of fraud. We will then reach out to the federal prosecutor or agents assigned to your case and provide them with information that can make a beneficial impact on your case.

We understand that being charged with PPP loan fraud can be a stressful and overwhelming experience. That’s why our criminal defense lawyers are here to aggressively negotiate and, if necessary, defend you at trial. We know what the government looks for in PPP loan fraud cases and will use this knowledge to your advantage. Contact us today to learn more about how we can help you navigate these challenging times.

PPP loan fraud is a serious crime that preys on the vulnerabilities of small businesses during a time of crisis. The Paycheck Protection Program, or PPP, was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial relief to businesses affected by COVID-19. Eligible businesses could receive up to $10 million to cover expenses such as payroll, mortgages, rent, and utilities for eight weeks, with the government forgiving the debt if the money was used for “qualified expenses.”

However, amidst the chaos and urgency of the pandemic, some individuals and businesses have taken advantage of the program by providing false information and misrepresenting their eligibility to receive funds. This is a federal crime under the Small Business Act, and carries severe consequences such as potential prison time, fines, and repayment of the loan.

One of the most common forms of PPP loan fraud is application fraud, where businesses misrepresent the number of employees they have or the size of their payroll in order to receive more funding than they are entitled to. This is not only illegal, but it also takes away from the businesses that truly need the financial assistance to survive.

Furthermore, those who are caught committing PPP loan fraud may also face immigration consequences, as fraud involving more than $10,000 is considered an aggravated felony. Non-citizens convicted of CARES Act fraud may be subject to deportation.

It’s important to note that not all PPP loan fraud cases are clear cut and there are defenses available. The defendant can argue that they had no intent to defraud or that the SBA made a mistake. In most cases, federal criminal records are unsealable.

In conclusion, PPP loan fraud is a federal crime that preys on small businesses during a time of crisis and carries severe consequences. Business owners are encouraged to keep all their records, such as email communications, voicemails, bank statements, accounting notes, receipts, and bills to prove their innocence if falsely accused. Anyone facing PPP loan fraud charges should consult with legal counsel as soon as possible.