24/7 call for a free consultation 212-300-5196




When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.

San Diego PPP and EIDL Loan Fraud Lawyers

As the Coronavirus pandemic swept the nation, small businesses across the country were left struggling to keep their doors open. In a desperate bid for survival, many turned to the Paycheck Protection Program (PPP), a federal loan program created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. However, amidst the chaos and confusion of the early days of the pandemic, some unscrupulous individuals saw an opportunity to exploit the program for their own gain. This is known as PPP loan fraud.

PPP loan fraud is the act of obtaining money through false pretenses by misrepresenting facts to the federal government. It is a federal crime under the Small Business Act, and those found guilty can face severe punishments, including prison time, fines, and restitution. Some of the most common examples of PPP loan fraud include misclassifying employees as contractors to meet the small business eligibility criteria, and misrepresenting payroll costs to secure more funding under the program.

As the PPP program gained popularity, lenders were inundated with applications, and with little regulation in place, accusations of fraud began to surface. The SBA’s Office of Inspector General has issued 11 reports detailing widespread fraud and abuse in the PPP loan program, and has referred dozens of cases to the Department of Justice for criminal prosecution.

Those facing PPP loan fraud charges may argue that they had no intent to defraud, or that the SBA made a mistake. However, in most cases, federal criminal records are unsealable, and non-citizens convicted of CARES Act fraud are vulnerable to deportation. It’s important to consult with legal counsel as soon as possible, as a criminal defense attorney may be able to get the charges dismissed or reduced to a non-deportable offense.

In conclusion, the Paycheck Protection Program was a lifeline for small businesses struggling to stay afloat during the pandemic. However, it was also vulnerable to fraud and abuse, and those found guilty of PPP loan fraud face severe punishments. It’s crucial for businesses to be transparent and honest when applying for PPP loans, and to keep records of their communications, bank statements, receipts, and bills to prove their innocence if falsely accused.

As the nation continues to grapple with the devastating impacts of the COVID-19 pandemic, small businesses have been hit particularly hard. In an effort to provide much-needed relief, Congress created the Paycheck Protection Program (PPP) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This program authorized over $950 billion in forgivable loans to help small businesses maintain their workforce, have access to working capital, and keep operations running normally.

But as with any large-scale government program, fraud and abuse were bound to occur. And the PPP was no exception. The government has been vigorously investigating and prosecuting allegations of PPP loan fraud, with entire sections of the Department of Justice dedicated to these investigations.

If you or your business is facing PPP loan fraud charges, the stakes are high. Penalties may include severe fines, home detention, community confinement, paying the cost of prosecution, forfeitures, restitution, supervised release, and lengthy imprisonment. For immigrants, the consequences of a fraud conviction can be particularly dire, as fraud involving more than $10,000 is considered an aggravated felony and a crime involving moral turpitude – making non-citizens vulnerable to deportation.

But all is not lost. Even if formal charges have been brought against you, our criminal defense lawyers are prepared to aggressively negotiate and, if necessary, defend you at trial. We know what the government looks for in PPP loan fraud cases and will use this knowledge to your advantage.

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 an audit. These acts and omissions can result in charges such as making a false statement, bank fraud, and wire fraud – all of which carry significant fines and prison sentences.

Don’t face these charges alone. As soon as you retain our law firm, we will gather all the necessary information, including all the evidence the government has against you, so we can review whether you have a strong defense against any allegations of fraud. We will reach out to the federal prosecutor or agents assigned to your case and provide them with information that can make a beneficial impact on your case. We are dedicated to helping you navigate this difficult and uncertain time and will fight tirelessly to protect your rights and interests.

Schedule Your Consultation Now