Last Updated on: 17th October 2023, 10:57 pm

Brooklyn PPP and EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program was created by the federal government to provide emergency financial assistance to small businesses impacted by COVID-19. While these programs have helped many legitimate businesses stay afloat, some applicants have unfortunately abused the system and committed fraud to obtain funds they weren’t entitled to.

In Brooklyn specifically, federal prosecutors have charged dozens of individuals for allegedly falsifying information on PPP and EIDL applications to receive millions in emergency aid. Common allegations include inflating payroll numbers, using fake employees, and spending funds on unauthorized personal purchases.

If you have been accused of PPP or EIDL fraud in Brooklyn, it is critical to consult an experienced white collar defense attorney immediately. An aggressive legal defense is needed to fight these allegations and avoid severe penalties like prison, fines, and restitution.

Common Brooklyn PPP and EIDL Fraud Allegations

Some of the most frequent PPP and EIDL fraud schemes alleged by federal prosecutors in Brooklyn include:

• Falsifying the number of employees and average monthly payroll on PPP applications to obtain larger loans. PPP loan amounts were based on payroll, so larger businesses could qualify for more aid.
• Creating fake employee names and Social Security numbers to make it appear as if a business had more workers on payroll than it actually did.
• Claiming employees were still being paid even if the business was not operating due to COVID-19 shutdowns.
• Using PPP funds for personal purchases, debts, and other expenses unrelated to payroll, rent, or utilities.
• Applying for an EIDL using false employee numbers, revenues, and costs.
• Applying for and receiving duplicate PPP and EIDL loans by submitting multiple applications.
• Money laundering – transferring illegally obtained funds between bank accounts or through cash purchases to conceal their criminal origin.

These are just some examples – PPP and EIDL fraud can take many forms. Even unintentional misstatements on applications can potentially lead to criminal charges.

How a Brooklyn Federal Defense Lawyer Can Help

Facing PPP or EIDL fraud charges in Brooklyn can be overwhelming. But an experienced federal defense attorney can protect your rights and future at every stage, including:

• Investigation – We can intervene early to prevent charges or negotiate a favorable resolution pre-indictment.
• Charges – Careful case analysis and defense preparation can lead to getting charges reduced or dismissed.
• Trial – We identify weaknesses in the prosecution’s case and present persuasive defenses before a judge and jury.
• Sentencing – Even if convicted, we advocate for the lowest possible sentence under federal guidelines.
• Appeal – We appeal convictions, sentences, or other unfavorable rulings to higher courts.

An attorney knows how to examine the evidence, challenge improper government conduct, and build a defense catered to the specifics of your case. We have successfully defended business owners, executives, employees, and others against complex federal fraud allegations.

Potential Defenses in Brooklyn PPP and EIDL Fraud Cases

While PPP and EIDL fraud allegations should always be taken seriously, there may be defenses an attorney can assert to avoid liability. Some examples of potential defenses include:

• Lack of intent – The government must prove you knowingly and intentionally committed fraud. If errors were unintentional, it weakens the prosecution’s case.
• Reliance on professionals – You may avoid liability if you relied in good faith on advice from an accountant or advisor.
• Duress – External threats or pressure from others could potentially excuse wrongdoing.
• Entrapment – Law enforcement improperly induced you to commit fraud you otherwise wouldn’t have.
• Constitutional violations – We scrutinize the investigation for violations of your rights to due process, privacy, etc.

An attorney conducts a meticulous case review to identify and develop the strongest defenses possible under the circumstances.

What to Do If You Are Under Investigation

If federal agents have contacted you about potential PPP or EIDL fraud, it is essential to engage an attorney immediately. The investigation stage is a critical opportunity to avoid charges altogether or mitigate the consequences.

An attorney can advise you on how to respond to investigators appropriately. We can interact with agents on your behalf, present exculpatory evidence, and try to resolve the case before an indictment. Early intervention by counsel makes a difference.