Kansas City PPP and EIDL Loan Fraud Lawyers
As the coronavirus pandemic swept the nation, small businesses were hit hard, struggling to stay afloat in the face of economic uncertainty. In a desperate bid for survival, many turned to the Paycheck Protection Program (PPP) – a federal loan program created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, designed to provide urgent financial relief to American businesses. However, as the government distributed over $950 billion in forgivable loans, it soon became clear that not all of the funds were being used for their intended purpose.
Fraudulent PPP loan applications flooded in, with individuals and companies falsely claiming eligibility, misrepresenting information, and receiving funds from multiple lenders. The government responded by dedicating entire sections of the Department of Justice to investigating and prosecuting allegations of PPP loan fraud.
If you or your business is facing PPP loan fraud charges, the stakes are high. Penalties for conviction can include severe fines, home detention, community confinement, paying the cost of prosecution, forfeitures, restitution, supervised release, and lengthy imprisonment. For immigrants, the consequences can be even more dire, as fraud involving more than $10,000 is considered an aggravated felony and can lead to deportation.
But there is hope. Our criminal defense attorneys specialize in PPP loan fraud cases and will work tirelessly to build a strong defense on your behalf. We will gather all the necessary information and evidence, review the government’s case against you, and provide them with information that can make a positive impact on your case. Often, we can come to a resolution that doesn’t involve formal criminal charges. But if charges have already been brought against you, we are prepared to aggressively negotiate or defend you at trial.
Examples of PPP loan fraud include but are not limited to: loan application fraud, loan stacking, fraudulent loan certification, using funds for ineligible purposes, and concealing or misrepresenting information during audit. The charges that may result from PPP loan fraud include making a false statement, bank fraud, and wire fraud, all of which carry heavy penalties.
Don’t face PPP loan fraud charges alone. Retain our law firm today and let us use our knowledge and expertise to fight for your rights and protect your future.
Kansas City PPP and EIDL Loan Fraud Lawyers
The Paycheck Protection Program (PPP) loan fraud is a serious crime that involves obtaining money through false pretenses under the CARES Act. This federal program was created to provide financial relief to small businesses affected by the COVID-19 pandemic. Businesses with fewer than 500 full-time employees were eligible to receive up to $10 million to cover expenses such as payroll, mortgages, rent, and utilities for eight weeks. The government would forgive the debt if the money was used for “qualified expenses.”
However, some individuals and businesses have taken advantage of this program by fraudulently obtaining funds through false statements or overvaluing securities. This is a federal crime under the Small Business Act and carries severe consequences such as fines, prison time, and restitution.
Defendants facing PPP loan fraud charges can argue that they had no intent to defraud or that the Small Business Administration (SBA) made a mistake. For example, a business owner may have accidentally provided false information on their loan application due to stress and complications. Additionally, the SBA, like all bureaucracies, may make errors, which is why it’s essential for business owners to keep records such as email communications, voicemails, bank statements, accounting notes, receipts, and bills to serve as proof of innocence if falsely accused.
In most cases, federal criminal records are unsealable. However, for non-citizens, fraud involving more than $10,000 is an aggravated felony and a crime involving moral turpitude, making them vulnerable to deportation. It’s crucial for non-citizens facing criminal charges to consult with legal counsel as soon as possible to potentially get the charges dismissed or reduced to a non-deportable offense.
The PPP program was immensely popular, but with little regulation in place and lenders overwhelmed by applications, accusations of fraud soon followed. The SBA’s Office of Inspector General has issued several reports detailing widespread fraud and abuse in the program and has referred dozens of cases to the Department of Justice for criminal prosecution. To avoid being caught in the web of PPP loan fraud, it’s crucial for business owners to understand the eligibility criteria and requirements of the program and to accurately represent their payroll and employee information.