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

As the nation continues to grapple with the economic aftermath of the coronavirus pandemic, PPP loan fraud investigations are on the rise. Federal prosecutors and criminal investigators from various agencies are working tirelessly to uncover possible violations and recover funds that may have been obtained through fraudulent means.

But what exactly is PPP loan fraud? Simply put, 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). This program was created to help companies stay afloat during the pandemic by providing forgivable loans to cover payroll and operating expenses. However, businesses must meet certain criteria and abide by strict requirements and limits on how the funds can be spent.

When a PPP loan fraud investigation begins, the focus is to determine whether charges should be brought against someone for violating these requirements. Prosecutors have been targeting those who may have falsely claimed eligibility, falsified information, or misused funds.

If you or your business is under investigation, it’s crucial to take the proper steps to protect yourself and your financial records. Hiring an experienced federal defense attorney and gathering all relevant business and personal financial records can help support your defense. It’s also important to make sure your employees are aware that they can report any suspicions of fraud without fear of retaliation.

Our firm has a team of experienced attorneys, paralegals, and independent consultants who have been successful in helping business owners navigate PPP and EIDL loan fraud investigations. We take immediate steps to contact any investigators or government agents involved and preserve any relevant business documents. With the help of a forensic accountant, we review the company’s financials and present any available arguments for mitigation or mistake to the government.

Don’t let the stress and uncertainty of a PPP loan fraud investigation weigh you down. Contact us today to see how we can help you and your business.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was crafted to assist individuals and businesses grappling with the devastating effects of the coronavirus pandemic. A crucial component of the CARES Act was the Paycheck Protection Program (PPP), which aimed to provide vital financial aid to small businesses that were struggling financially due to the economic impact of COVID-19.

However, the PPP quickly ran out of funds, leaving numerous eligible companies without access to a loan. As with any federal program that offers financial assistance, concerns about fraud inevitably arise, and the Paycheck Protection Program is no exception.

In light of these valid concerns, the United States Department of Justice launched a comprehensive federal investigation to identify instances of loan fraud and prosecute those who were defrauding the program. PPP loan fraud investigations are now commonplace across the country, with federal prosecutors and law enforcement from various agencies actively investigating potential PPP loan fraud and other CARES Act violations in order to recover money that may have been obtained fraudulently through COVID-19 relief programs.

If you are currently under criminal investigation for PPP or EIDL loan fraud, our experienced Los Angeles criminal defense attorneys may be able to help you resolve the case without any criminal charges being filed against you. We will closely review the laws and build a robust defense strategy for you.

But what exactly is PPP loan fraud and how is it investigated? PPP loan fraud occurs when a person or business submits false information on an application for a loan under the federal Paycheck Protection Program. The program was designed to help companies stay afloat during the coronavirus pandemic by providing them with forgivable loans to cover their payroll and operating expenses. Eligible businesses can apply for PPP loans through commercial banks.

Once a business is approved and receives a PPP loan, they are expected to adhere to specific guidelines on how the funds can be spent. As with any government funding, fraudulent activity is a concern, and investigations are conducted to determine if criminal charges should be pursued for violations of the PPP program.

Federal prosecutors and agents may target individuals or businesses who have violated the terms of the PPP program in the following ways: -submitting false or fraudulent information on a PPP loan application -applying for PPP loans from multiple lenders (loan stacking) -fraudulent loan certification -using PPP funds for an unapproved purpose -lying to federal agents during a PPP loan fraud audit

One of the most common forms of PPP loan fraud is loan application fraud. Companies that misrepresent information on their loan application in order to fraudulently claim eligibility may face criminal prosecution. Examples of such misrepresentation include: -inflating the number of employees (most PPP loans require companies to have 500 or fewer employees) -misclassifying employees as independent contractors -misrepresenting that the company meets small business eligibility standards -inflating payroll costs to increase the loan amount

Those charged with PPP loan fraud may face criminal and civil penalties. While there is no specific federal statute for PPP loan fraud, most cases are prosecuted under the following laws: -18 U.S.C. 1343 (wire fraud) -18 U.S.C. 1344 (bank fraud) -18 U.S.C. 1014 (false statements to a financial institution) -18 U.S.C. 1349 (conspiracy to commit fraud)

It’s worth noting that even if you did not make any false statements or take any money, you could still be charged with federal conspiracy.