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What Happens If You Lie On A PPP Loan?

Possible Criminal Charges for PPP Loan Fraud

If you’re charged with a PPP crime, call the Spodek Law Group today!

The Paycheck Protection Program(PPP) was created to allow small business owners to keep workers on their payroll without additional burdens on them financially. The program provided federally guaranteed loans to small businesses – with a maximum amount of $10 million for eligible businesses. More than 10 million loans, totaling more than $750 billion were issued under PPP. These funds were provided as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Needless to say, these loans truly played a major role in helping small business owners cover essentials like payroll, rent, utilities, and other expenses.

However, this free money attracted a lot of people individuals who tried to act unethically. Many con-artists were attracted to the PPP loans and tried taking the funds. Businesses who applied for a PPP loan are required to meet very specific requirements, and there are limits how the funds can be spent. Businesses who violated these requirements while obtaining a PPP loan – could be held liable for charges of PPP fraud. Below are some examples of ways businesses could be accused of committing PPP loan fraud:

Making false statements on their PPP loan application

Applying for PPP loan money, from multiple lenders at the same time

Using PPP loan money for unapproved items

Submitting a false certification for PPP loan forgiveness

Being misleading during the PPP loan audit, or investigation

Consequences of PPP loan fraud | PPP loan punishment

If you lie on your PPP loan application, or omit information, you can face financial penalties, civil penalties, and criminal penalties. Some of the charges you might face include, but are not limited to:

George FernandezGeorge Fernandez
14:16 30 Apr 24
Excellent 10 out of 10, Helped resolve my case. Jeremy explained everything and made everything easy to understand.
21:33 24 Apr 24
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
Yelva Saint-PreuxYelva Saint-Preux
19:26 19 Apr 24
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Katherine SunKatherine Sun
18:08 18 Apr 24
my lawyer is Alex Zhik. Efficient, patient and professional
Nun yaNun ya
17:48 18 Apr 24
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Keisha ParrisKeisha Parris
20:45 15 Mar 24
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko BeautyTaïko Beauty
16:26 15 Mar 24
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
K MarK Mar
01:37 25 Jan 24
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.

Bank Fraud: If you lie on your PPP loan application, this is looked at as deceiving a financial institution for profit. You can be charged with bank fraud, under U.S. Code Title 18 U.S.C. 1344. Bank fraud is a white collar crime, and the penalty will vary based on the situation. Typically, bank fraud punishment can include up to one year in jail, and thousands of dollars in fines.

Wire Fraud: If you used a device, like telephone, internet, etc, to defraud an institution in order to gain funds from a PPP loan – you can be convicted of wire fraud. Penalties for wire fraud can include a prison sentence up to 20 years, and in addition – restitution to anyone impacted.

Conspiracy to Commit Fraud: If you lie on your PPP loan application with someone else, you are likely to get charged with conspiracy to commit fraud. This involves two, or more people, conspiring to commit any offense against the U.S.. The charge can come with up to 5 years in prison, and other financial fines.

False Statements to a Financial Institution: It is absolutely illegal to making false statements to a financial institution. If you lie on your PPP loan application, you could be charged with a federal crime. This act is a criminal offense under section 1014, and if you’re convicted can come with imprisonment of up to 30 years – or worse.

What to do if you’re under investigation for PPP loan fraud

If you’re under any investigation, at all, it’s important to be careful what you say. Do not say something you might regret later. Anything you say – can, and will, be used against you. In times like these, it’s in your best interest to hire a PPP loan fraud defense attorney who can advise you. You might think you’re telling the truth, or clearing your name, but in reality – you just incriminated yourself. If you lied on ppp loan application, saying anything to the SBA agents can be used against you. Any words you say – can get you in trouble for the PPP loan. The problem will not go away on its own – you will need the help of a firm like the Spodek Law Group. If you think you are facing PPP loan fraud charges, here are some of the steps we can take to help:

  • We can help look at your business and personal records in order to help support your case
  • We can communicate with the necessary government individuals involved in the case to gather information which will help us create a favorable outcome for your case.

If you’re arrested for PPP loan fraud, here are some of the best routes of defenses

Lack of intent: In order to charge you with PPP loan fraud and get you in trouble for PPP fraud – the government will need to prove you intentionally misrepresented facts on the PPP loan application to receive more money. It is natural that there might be mistakes on the PPP loan applications – because of how little guidance was initially offered.

PPP Loan was used legitimately: In order to change you with PPP loan fraud, the government has to prove that the funds were used incorrectly. If you requested, and received a PPP loan – you are required to use the funds for very specific purposes. If you signed a PPP loan application, you are required to certify that the funds are going to be used for “business-related,” purposes under the PPP loan requirements. If the government says you didn’t use the PPP funds appropriately – the main way to defend against this is to look at the usage of the funds to prove you used the PPP funds correctly.

Identity: Another fact that the government will be required to prove is that you are the person who committed the crime. PPP applications require that the business owner file specific applications. This requires the government to prove that the person who submitted the application – was in fact, the business owner. If we can prove that there is no evidence that you – the business owner – submitted the request, then it will make it easier to prove your innocence.

Am I in trouble for lying on my PPP loan application

Lying on PPP application is not a good thing. It is expected that mistakes might be made. When the PPP loan program was first unveiled everyone was in a hurry to fill out their application. There was no expert assistance. Everyone was stuck going to an online portal, and filling it out. Banks knew very little. As a result, mistakes were made by everyone. There were so many mistakes made due to poor guidance, that the SBA offered amnesty to allow people time to return the funds without any penalties.

What happens if you lie on your ppp loan?

Well if you took advantage of the amnesty program offered by the SBA – nothing. You returned the funds, and there was nothing more to worry about. There was no harm done.

How can you get in trouble with PPP loan?

The main way you can get in trouble is if you lied on your PPP loan application in a big way. For example, if you said you had 15 employees – yet you only have 1 employee. These are examples of things which can get you in trouble – because the number of employees you have is listed on your previous tax returns. It is easy for the SBA to find this information.

Can you go to jail for $20000 ppp loan

Depending on whether you lied to get the PPP loan – you could go to jail. Did you lie about the number of employees you had? Did you lie about your business expenses? Did you misuse the funds? Can you go to jail for doing the ppp loan fraudulently is a popular question, and one that many people are asking. The charges for ppp loan fraud can be severe.

Can you go to jail for SBA loan fraud

The answer is yes. Jail is one of the consequences – of the several federal crimes you could be committed with. Most federal crimes, such as wire fraud, bank fraud, etc, have jail sentences attached to them. Bottom line, you can go to jail for SBA loan fraud. If you are caught lying on SBA loan applications – the penalty can be severe. Any attempts at defrauding the SBA can be considered PPP loan fraud. Many PPP loan fraud cases $20k and above, are being audited and investigated. Many people ask, “Are people going to jail for the ppp loan,” and the question is yes – they are, if they did fraud.

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