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NJ SBA Fraud / PPP Loan Fraud Defense Lawyers

SBA Fraud / PPP Loan Fraud Defense

What happens if a company is prosecuted for PPP loan fraud? What exactly is PPP loan fraud, and what can you do to clear the charges?

The CARES Act was made law on March 27, 2020. This coronavirus stimulus package provided relief to small business owners and Americans who had lost their jobs. The goal was to help people be economically secure until the coronavirus pandemic ended. One of the biggest pieces of the CARES legislation was the Paycheck Protection Program, otherwise known as the PPP.

The PPP was given almost 350 billion dollars in federal funding. It was designed to give relief to small businesses and mid-size businesses that could not continue paying their employees due to the financial strain from the coronavirus impact.

Even though there were hundreds of billions of dollars in aid, the funding was all gone minutes after it was made available. Applications flooded in to the government asking for relief. Companies that ought to have been eligible were left with nothing because there were no funds left to give them.

Federal programs that provide financial relief will always be accused of fraud. But the scrutiny is even heavier regarding the PPP. Since the funds were depleted so quickly, companies that were able to receive PPP funding will be scrutinized by federal officials to be sure they haven’t taken money that could have been used for a more deserving business.

Fraud Concerns Identified

Many people have criticized the setup of the PPP system, and various concerns about fraud have been raised. Right now, the federal government is taking input on how to offer better protection with future programs, as well as how to combat the issues that were seen with PPP.

Part of the fraud concern is because of how disjointed the application process was. But there are other fraud concerns as well. Certain federal agencies are currently going through the businesses that received federal aid and working to identify those that received funds under false pretenses. It’s very likely that these businesses will be prosecuted, since the PPP was so widely criticized for how quickly it was depleted.

If a company is accused of receiving fraudulent federal aid, it’s important that they speak to a lawyer who is experienced in working with the federal government.

Types of PPP Fraud

Any federal program can be subject to fraud. Various application omissions and financial acts can be constituted as fraud. Where the PPP is concerned, fraud may be incurred in both inadvertent mistakes and intentional misrepresentations. Even if you didn’t mean to make the error, your business still received fraudulent federal funding that could have gone to someone else.

One of the fraud iterations is “stacking” your loans. If applicants received loans from several different lenders, they are guilty of fraud. People are only supposed to have loans from one lender. The additional money should have been given back to the government rather than distributed.

According to the federal government, investigators intend to focus on this kind of fraud. It’s one of the easiest types of fraud to trace, since government officials can see who received funds from different lenders.

Another form of fraud is submitting false information on the loan application. To be eligible for the relief, you needed to meet certain criteria. If your company didn’t actually meet all the criteria, but you misrepresented your application so it looked like it did, you might also be subject to fraud charges.

Companies may have misrepresented how many employees they had, whether their employees were independent contractors, whether the business met the small business eligibility requirements, and what the company’s payroll costs were. All of these things may have gotten a business approved when it shouldn’t have been, or gotten a business a larger loan than it should have received.

Applicants also needed to certify certain facts before submitting. If you falsely certified these facts, you may be charged with fraud. You needed to certify that the loan was necessary for the operation of your business, that the funds would be used for your payroll or mortgage, that you would only receive one loan, and that you submitted accurate information in your application.


Charle Butler
Charle Butler
2021-03-12
Verified
I was hesitant to hire the Spodek Law Group. I read reviews and knew they have a great reputation. However, I thought I would spend money and not see or speak to my attorney. From the beginning to end of my case Todd and the entire staff were available and willing to help. We worked towards and end result that was way above my expectation and Todd delivered. I am forever grateful for patience and long days and night spent working on my case. Thanks Todd and the entire team!
Mesonista parsons
Mesonista parsons
2021-03-05
Verified
My attorney at Spodek was Abigail. She was very knowledgeable and helpful with all my questions and concerns, as well as responsive. Her fees are affordable and Abigail took the time to make sure I understood everything relating to my case. I highly recommend Abigail and will request her services in the future.
debabrata chakraborty
debabrata chakraborty
2021-03-03
Verified
Todd A Spodek is the experienced and best criminal lawyer at USA. He is very professional and always respond on time. Alex also very cooperative and always help me. They took care me and my problem like family member. I am 100% satisfied for their professional service. My result was unexpected and amazing. They dismissed my case. I am really grateful to them. I will recommend you to go there if you want to solve your problem. I wish all the best for them.
Asata Hendricks
Asata Hendricks
2021-03-02
Verified
Truly appreciate the work the guys did!. Exceptional team & I know they care about each and everyone of their clients. I am super thankful to be referred to Spodek Law Group and I am grateful Todd & Alex were able to work diligently to achieve an outcome I am pleased with. Despite COVID they stayed on top of things and kept me informed every step of the way. Very thankful.
Mike Moroff
Mike Moroff
2021-02-26
Verified
I'm very satisfied with the services rendered by Todd, Alex and Mary Lou. I whole heartedly recommend Spodek Law Group . I've worked with and have retained other attorneys in the past with Todd's firm being the cream of the crop for many reasons. A very serious legal matter was resolved after a year's hard work and effort. Todd expertly guided me through the process and was able to navigate and make the good journey bearable as well as successful. Mary Lou initially provided excellent assistance before referring my case to Todd. Alex's support was effective and timely. The customer portal (MyCase) is an invaluable communication tool that also kept track of my case. Various aspects of my case were explained and there were several options provided but I made the final decision of how the case would be handled. The legal fee was reasonable considering the effort and amount of work plus it was a flat fee regardless of the length of time required to conclude my case. Todd made himself available to me and we had many scheduled meetings to go over the progress and to discuss the next steps. I felt more confident after many discussions with him. You will not go wrong choosing Spodek Law Group for legal matters.
Josh Katz
Josh Katz
2021-02-24
Verified
Being that it was the first time that I was in need of an attorney, I was afraid and hesitant and knew I needed the absolute best. It is beyond understood why Spodek Law Group has a reputation of being the top, if not the best law firm in New York. Alex and Abigail were there every step of the way even at the most unconvenient hours. I could not have asked for more. They are extremely good at what they do and they delivered much much more than just winning my case. A big thank you to Alex and Abigail for all the guidance and counseling and their upmost loyal support that extended far more than just legally. If you need the absolute best than don't hesitate to hire Spodek Law Firm.
L.C.
L.C.
2021-02-24
Verified
I cannot tell you how thankful I am to Todd and Alex for their hard work and dedication to my case. I had never been in any trouble before but I had an unfortunate event occur and in the midst of COVID-19 at that therefore I knew I needed a team that was dedicated to my success. Today- my case has been finalized and I’m walking away with no record and can continue life as a mother and a Grad student worry free. I cannot express enough gratitude for their assistance.
AnnMarie Soliman
AnnMarie Soliman
2021-02-23
Verified
I received a summons and called Spodek law group for a free consultation. Alex took my call and was very quick and responsive. He was available anytime through multiple platforms and very reassuring when needed. They are extremely organized and thorough. They got my case dismissed! I’m very grateful. Thank you Alex and Todd!

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"Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them..."

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