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Protecting Your Business during DOJ Investigations for PPP Loan Fraud
The COVID-19 pandemic has brought unprecedented challenges to small businesses worldwide. To deal with the impact, the US government launched the Paycheck Protection Program (PPP) to provide support. However, some fraudsters capitalized on its loopholes, and the PPP became a target for rampant fraudulent activities.
The US Department of Justice (DOJ) has launched extensive investigations and criminal complaints against companies and individuals for alleged PPP loan fraud. Facing DOJ investigations for PPP loan fraud can be nerve-wracking, and you must take action with care. Here’s what you need to know to safeguard your business if you face a PPP loan fraud investigation by the DOJ.
The DOJ is Aggressively Investigating PPP Loan Fraud
The DOJ is pursuing PPP-related fraud investigations aggressively. Its focus is on individuals and businesses that are alleged to have submitted fraudulent loan applications and misused the PPP funds. According to a DOJ press release, “Our office will be aggressive in targeting anyone who defrauds this critical program.”
The DOJ is Collaborating with Other Federal Law Enforcement Agencies
The DOJ is not working alone in its efforts to identify and prosecute PPP loan fraud. It is collaborating with other federal law enforcement agencies such as the SBA-OIG, FDIC-OIG, FBI, and IRS-CI to identify and investigate PPP loan fraud.
The DOJ Has Filed Criminal Charges in Several PPP Loan Fraud Cases
The DOJ has already filed criminal charges in several PPP fraud cases. The allegations include creating shell companies, falsifying payroll information to obtain PPP loans, using PPP funds for personal expenses, and attempting to obtain multiple PPP loans.
Defenses Available to Companies and Individuals Facing DOJ Investigations
Although the risk of facing DOJ investigations and allegations of PPP loan fraud is high, individuals and companies have many potential defenses available. Companies can show that they have complied with PPP loan requirements, demonstrate a lack of intent to defraud, or assert that allegations made against them are invalid. Corporations can retain the services of attorneys experienced in PPP loan fraud investigations to assist in their defense.
Potential Charges in Federal PPP Loan Fraud Investigations
PPP loan fraud can potentially result in civil and criminal charges under numerous federal statutes, including making false statements during the SBA loan process, making false statements to a financial institution, bank fraud, wire fraud, identity theft, tax evasion, making false statements to federal agents, conspiracy, and False Claims Act violations.
Headquartered in NYC, Spodek Law Group can provide guidance and representation for all PPP loan fraud-related matters. Its experienced team of attorneys can help you navigate this complex legal process and work to give you a favorable outcome. Taking prompt action and engaging legal representation is essential when you’re suspected of PPP loan fraud.
Don’t wait until it’s too late! Contact Spodek Law Group immediately if you or your business is facing a DOJ investigation for PPP loan fraud.
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