Last Updated on: 17th October 2023, 02:45 pm

Navigating PPP and EIDL Loan Fraud Charges in Mississippi

Common Types of Alleged PPP and EIDL Fraud

Prosecutors are pursuing charges for a range of PPP and EIDL program abuses, such as:

• Falsifying information on loan applications like number of employees, payroll costs, or revenue losses
• Using PPP funds for unauthorized purposes instead of payroll and eligible expenses
• Double dipping into both PPP and EIDL programs for the same expenses
• Fabricating supporting documents like bank statements or tax filings
• Applying for multiple loans through different lenders
• Lying about having an existing business
• Using stolen identities to apply for fraudulent loans

Prosecutors take PPP and EIDL fraud very seriously, considering it tantamount to stealing taxpayer funds intended to help legitimate small businesses. Charges often include wire fraud, bank fraud, false statements, aggravated identity theft, and money laundering.

Penalties for PPP and EIDL Loan Fraud

Depending on the specific allegations, potential penalties for PPP or EIDL fraud can include:

• Up to 30 years in federal prison
• Fines up to $1 million
• Restitution to repay ill-gotten loan amounts
• Asset forfeiture
• Loss of future government contract eligibility

Defendants also face reputational damage and loss of professional licenses or security clearances. With so much at stake, having an aggressive defense is critical.

Defenses Against PPP and EIDL Fraud Charges

Skilled Mississippi fraud defense attorneys scrutinize the prosecution’s evidence and identify weaknesses for the defense to exploit. Here are some possible defenses:

• No intent to defraud – Prosecutors must prove you knowingly tried to obtain loan money through deception. But many application errors result from misunderstandings, not criminal intent.
• Program ambiguity – PPP and EIDL programs kept changing rules, causing widespread confusion. It’s unfair to charge fraud without clear program guidance.
• Lack of materiality – Minor application errors that don’t substantially impact the loan decision should not support fraud charges.
• Unreliable witnesses – Disgruntled employees or partners may falsely accuse you of PPP/EIDL fraud out of ill motives.
• Unconstitutional searches – If evidence was obtained illegally, skilled lawyers can often get it suppressed.

An attorney conducts in-depth case investigation to determine if any viable defenses apply. The law contains many complexities that laymen simply don’t understand.

Key Federal Laws on PPP and EIDL Fraud

Prosecutors typically charge PPP and EIDL fraud under the following federal statutes:

• Wire fraud – Using interstate wires to execute a scheme to defraud or obtain money under false pretenses. This includes email, phone calls, electronic funds transfers, etc. (18 U.S.C. § 1343)
• Bank fraud – Schemes to defraud a bank or obtain bank funds through false statements. Applies because lenders are FDIC-insured. (18 U.S.C. § 1344)
• False statements – Knowingly making false statements to a government agency like the SBA. (18 U.S.C. § 1001)
• Aggravated identity theft – Using someone else’s personal identifying information without authorization. (18 U.S.C. § 1028A)
• Money laundering – Engaging in financial transactions to conceal unlawful activity or avoid transaction reporting requirements (18 U.S.C. § 1956)

These federal charges are very serious and carry strict sentences. Many fraud defendants end up pleading to reduced charges to avoid lengthy prison terms.

Hire a Seasoned Mississippi Federal Fraud Lawyer

Allegations of PPP or EIDL fraud should never be taken lightly. These complex cases require an attorney well-versed in federal law and sophisticated defense strategies. Look for a lawyer with specific experience defending COVID relief fraud cases in Mississippi courts. They will meticulously examine the prosecution’s evidence, identify weaknesses, negotiate with prosecutors, and build the strongest trial defense. With skilled legal representation, many fraud defendants can avoid convictions or minimize penalties.

Don’t leave your fate to chance. The stakes are far too high. Call a trusted Mississippi federal fraud defense lawyer today for a free case evaluation and protect your rights and future.