Last Updated on: 28th July 2023, 07:22 pm

As the nation continues to grapple with the financial fallout of the coronavirus pandemic, PPP loan fraud investigations are on the rise, leaving many businesses and individuals feeling uncertain and vulnerable.

Federal prosecutors and criminal investigators from various federal agencies have launched an active pursuit of possible PPP loan fraud and other CARES Act violations in an effort to recover money that may have been fraudulently obtained from coronavirus relief programs.

But what exactly is PPP loan fraud? It’s 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 afloat during the pandemic by providing forgivable loans to cover payroll and operating expenses.

When a PPP loan fraud investigation is underway, the focus is to determine whether charges should be brought against someone for violating one or more of the strict requirements of the PPP loan program. Prosecutors are targeting businesses and individuals who may have violated the PPP loan program by:

• Making a false statement on the PPP loan application
• Applying for PPP loans from multiple lenders (“loan stacking”)
• Using PPP loan money for an improper or unapproved purpose
• Submitting a false certification for PPP loan forgiveness
• Not being truthful to agents during a PPP loan audit or investigation

It is important to note that a person charged with PPP loan fraud may face serious criminal and civil penalties. The most common criminal charges include:

• Wire Fraud (18 U.S.C. Section 1343)
• Bank Fraud (18 U.S.C. Section 1344)
• False Statements to a Financial Institution (18 U.S.C. Section 1014)
• Conspiracy to Commit Fraud (18 U.S.C. Section 1349)

If you have been contacted by a federal agent or another official about a PPP loan, it is crucial to be cautious. In recent cases, people who decided to talk to investigators without a lawyer ended up being charged with obstruction or making a false statement to the agents, in addition to PPP loan fraud. At Spodek Law PC, we advise our clients to contact us first before they discuss their loan application or business with a federal agent and certainly before they agree to provide any documents or business records to the government. We have been contacted by several people who had bank accounts frozen or seized by the government as part of a PPP loan fraud investigation, and we understand how stressful and overwhelming this can be. Trust us to guide you through this process and protect your rights.

Bakersfield PPP Loan Fraud Lawyers

The Paycheck Protection Program (PPP) was created to help businesses stay afloat during the coronavirus pandemic by providing forgivable loans to cover payroll and operating expenses. However, as the investigations into PPP loan fraud continue to rise across the country, it’s crucial to understand the gravity of this crime.

Federal prosecutors and criminal investigators from various federal agencies are actively on the hunt for possible PPP loan fraud and other CARES Act violations in an attempt to recover money that may have been fraudulently obtained from coronavirus relief programs. The focus of a PPP loan fraud investigation is to determine whether charges should be brought against someone for violating one or more of the strict requirements of the PPP loan program.

Businesses and individuals who may have violated the PPP loan program by making a false statement on the PPP loan application, applying for PPP loans from multiple lenders (“loan stacking”), using PPP loan money for an improper or unapproved purpose, submitting a false certification for PPP loan forgiveness or not being truthful to agents during a PPP loan audit or investigation may face serious criminal and civil penalties.

Wire Fraud, Bank Fraud, False Statements to a Financial Institution, and Conspiracy to Commit Fraud are some of the criminal laws that may be involved in a PPP loan fraud case. The penalties for these crimes can range from 20 to 30 years in prison.

If you have been contacted by a federal agent or another official about a PPP loan, it is crucial to seek legal counsel before discussing your loan application or business with a federal agent and certainly before providing any documents or business records to the government. At Spodek Law PC, we advise our clients to contact us first before they discuss their loan application or business with a federal agent. We have the experience and knowledge to help you navigate through a PPP loan fraud investigation and protect your rights.