CALIFORNIA CRIMINAL LAWYERS

Don’t Get Caught Unprepared: Tips for Protecting Your Business from DOJ Investigators Pursuing PPP Loan Fraud Charges

The Paycheck Protection Program (PPP) was created to provide much-desired relief for businesses affected by the COVID-19 pandemic. The program offers forgivable loans backed by the government to help businesses pay employees and continue operations.

While the PPP aimed to assist businesses in need, scammers had different ideas. They took advantage of the chaos caused by the outbreak to fraudulently obtain loans meant for legitimate businesses. As a result, the Department of Justice (DOJ) has launched a large-scale investigation into PPP loan fraud cases. If you find yourself targeted in such an investigation, it is essential to seek the counsel of an experienced PPP loan fraud attorney.

Here’s what you need to know to protect your business from DOJ investigations pursuing PPP loan fraud charges:

DOJ Is Determined to Hold Companies and Individuals Responsible for PPP Loan Fraud

Businesses caught committing PPP loan fraud will incur severe legal consequences. Suspected fraudsters who submitted false loan applications and made unauthorized use of the PPP funds will be prosecuted by the U.S. Department of Justice.

DOJ Is Actively Pursuing Charges in Numerous PPP Loan Fraud Cases

Several fraudulent organizations and individuals have already been charged by the DOJ. Such individuals submitted false information, established fake shell companies, or misused the PPP loans. The charges cover a variety of pre-existing federal offenses, such as bank fraud, wire fraud, false claims, tax evasion, etc.

DOJ Is Coordinating with Other Federal Law Enforcement Agencies to Combat Fraudulent PPP Loan Activities

The DOJ has teamed up with other federal law enforcement agencies in the task force to combat all sorts of PPP loan fraudsters. These federal partners include the U.S. Small Business Administration Office of the Inspector General (SBA-OIG), Federal Deposit Insurance Corporation Office of the Inspector General (FDIC-OIG), Federal Bureau of Investigation (FBI), and Internal Revenue Service Criminal Investigations (IRS-CI).

Multiple Defenses Can Be Asserted in the Course of DOJ’s PPP Loan Fraud Investigations

Fraud allegations can still be defended against in various ways. Experienced PPP loan fraud attorneys could use Paycheck Protection Program compliance or the lack of fraudulent intent as defense lines. They could also use other specific defenses to counter such charges.

Potential Charges Incurred in the Course of DOJ’s PPP Loan Fraud Investigations

Although the CARES Act did not stipulate penal provisions for PPP loan fraud, various pre-existing federal statutes, including making false statements or bank fraud, could lead to both criminal and civil charges.

PPP Loan Fraud Defense Strategies

If you become aware of a DOJ PPP loan investigation targeting your business for PPP loan fraud, here are a few things to keep in mind:

1. Get Experienced Legal Help

PPP loan fraud cases are always complicated. That’s why you need to hire defense attorneys with a wealth of experience in PPP fraud cases to fight for you.

2. Start Gathering Evidence and Preparing Your Defense Strategy

Once you’ve retained experienced PPP fraud defense attorneys, start gathering evidence to help construct your defense. The more information gathered and evaluated, the easier it will be to craft a comprehensive defense.

3. Be Honest

Honesty is crucial throughout any communication with your attorneys. Disclose everything you know to help them defend you thoroughly.

PPP loan fraud is a severe offense, and those caught face dire consequences. Hiring an expert PPP fraud defense attorney can make the difference between getting off free or facing severe penalties. Protect your business by being prepared and seeking the right legal help.