Last Updated on: 28th July 2023, 07:20 pm

As the nation struggles to recover from the devastating effects of the coronavirus pandemic, a sinister threat looms on the horizon: PPP loan fraud. Federal prosecutors and criminal investigators from various agencies are working tirelessly to uncover and prosecute those who have submitted false information in an attempt to fraudulently obtain funds from coronavirus relief programs like the Paycheck Protection Program (PPP).

But what exactly is PPP loan fraud? Simply put, it’s when an individual or business lies on their application or certification in order to qualify for a loan under the PPP. This program, created to help companies stay afloat during the pandemic, provides forgivable loans to cover payroll and operating expenses. However, businesses must meet specific criteria and adhere to strict requirements and spending limits in order to qualify for and maintain a PPP loan.

During a PPP loan fraud investigation, federal prosecutors focus on determining whether charges should be brought against those who may have violated the program’s requirements. Common targets include businesses and individuals who have misused funds or provided false information on their loan application.

If you find yourself under investigation for possible PPP fraud, it’s crucial that you take immediate action to protect yourself and your business. This may include hiring an experienced federal defense attorney, gathering and preserving all relevant business and financial records, and ensuring that your employees are aware that they can report suspicions of fraud without fear of retaliation.

At our firm, we have a team of experienced attorneys, paralegals, and consultants who have been highly successful in helping business owners navigate PPP and EIDL loan fraud investigations. We will work tirelessly to gather and preserve all relevant documents, interview relevant parties, and present any available arguments for mitigation or mistake to the government. Don’t let PPP loan fraud ruin your business and your future – contact us today to see how we can help.

As the world continues to grapple with the devastating effects of the COVID-19 pandemic, the Paycheck Protection Program (PPP) was created as a lifeline for small businesses struggling to stay afloat. But with this lifeline comes the potential for fraud, as unscrupulous individuals seek to exploit the program for their own gain.

Make no mistake, the consequences of PPP loan fraud are severe. The Coronavirus Aid, Relief, and Economic Security (CARES) Act may not contain specific penal provisions for PPP loan fraud, but fraud under the program can trigger civil and criminal charges under a host of federal statutes.

Some of the potential charges in federal PPP loan fraud investigations include making false statements to the Small Business Administration (SBA), making false statements to an FDIC-insured bank, bank fraud, wire fraud, aggravated identity theft, and even tax evasion.

The DOJ has already filed charges in several PPP-related cases, using the federal wire fraud statute, 18 U.S.C. § 1343, which allows prosecutors to seek substantial penalties under a broad range of circumstances. The use of the Internet in connection with, “any scheme or artifice to defraud, or . . . obtaining money or property by means of false or fraudulent pretenses, representations, or promises” is prohibited under this statute.

The federal crime of aggravated identity theft, defined under 18 U.S.C. § 1028A, is also a common charge in PPP loan fraud cases. It prohibits the, “knowingly transfer[ring], possess[ing], or us[ing], without lawful authority, a means of identification of another person,” in connection with the commission of certain specified felony offenses, including bank and wire fraud.

Tax evasion is another common charge in PPP loan fraud cases, as individuals and companies accused of fraud may also face allegations of evading payroll and income taxes by unlawfully claiming deductions for payroll expenses covered with PPP loan funds.

In short, PPP loan fraud is a serious crime with severe consequences. As the world fights to recover from the pandemic, it is crucial that we all do our part to ensure the integrity of this vital program and protect the small businesses that are the backbone of our economy.