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DOE Investigation: What You Need to Know About PPP Loan Fraud Charges
If you’re a company owner or executive, being under investigation by the DOE for PPP loan fraud is a daunting situation. The DOE is currently serious about eliminating fraudulent activities related to the PPP and is working diligently to pursue charges against individuals and companies that have participated in such illegal acts. These acts include submitting fraudulent loan applications and misappropriating funds from PPP loans.
The DOE is collaborating with other federal law enforcement agencies in its effort to pursue investigations related to PPP loan fraud. Charges are mounting rapidly, and anyone charged with PPP loan fraud can face serious consequences, including hefty fines, probation, restitution, and even incarceration.
The DOE’s Stance on Prosecuting Individuals and Companies for PPP Loan Fraud
The PPP originated as a response to help struggling businesses during the pandemic. Unfortunately, it quickly became a target for fraudulent activities. As a result, the DOE is now taking fraudulent activities seriously and is aggressively targeting individuals and companies that may have engaged in any illegal activities.
The DOE is Actively Pursuing Charges in Numerous PPP Loan Fraud Cases
The DOE has already charged many individuals with making false payroll information, using PPP loan funds for personal expenses, and attempting to obtain multiple PPP loans. The penalties for PPP loan fraud are grave, and anyone facing these charges should be aware of the consequences.
Defenses to PPP Loan Fraud Charges
Individuals and companies can utilize various defenses against PPP loan fraud allegations. Typical defenses include showing compliance with PPP regulations, lack of intention to defraud, or any other PPP loan fraud defense. It’s advisable to consult with an experienced PPP lawyer to determine the defense approach in each case.
Potential Charges in Federal PPP Loan Fraud Investigations
Fraud under the Paycheck Protection Program can trigger civil and criminal charges under numerous pre-existing federal statutes. Regardless of the absence of penal provisions for PPP loan fraud under the CARES Act, charges related to false statements, bank fraud, and wire fraud are severe and can result in significant fines and harsh prison sentences.
The following table summarizes the possible charges individuals and companies can face due to PPP loan fraud:
| Charge | Statute |
| ————————————— | ———————————————-|
| Making False Statements to the SBA | 18 U.S.C. § 1014 |
| Making False Statements to an FDIC-Insured Bank | 18 U.S.C. § 1014 |
| Bank Fraud | 18 U.S.C. § 1344 |
| Wire Fraud | 18 U.S.C. § 1343 |
| Aggravated Identity Theft | 18 U.S.C. § 1028A |
| Tax Evasion | 26 U.S.C. § 7201 |
| Making False Statements to Federal Agents| 18 U.S.C. § 1001 |
| Conspiracy | 18 U.S.C. § 371 and 18 U.S.C. § 1349 |
| Attempt | 18 U.S.C. § 1349 |
| False Claims Act Violations | 31 U.S.C. §§ 3729–3733 (civil or criminally) |
Conclusion
If you’re under investigation for PPP loan fraud, you need the services of an experienced PPP lawyer to help you craft the right response to such allegations. Get help from a PPP lawyer and uncover strong defenses to defend against PPP loan fraud charges. Take action right away, protect yourself, and mitigate the devastating consequences of PPP loan fraud charges.
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