CALIFORNIA CRIMINAL LAWYERS

North Carolina PPP and EIDL Loan Fraud Lawyers

Protect Your Small Business from DOJ Investigations into PPP Loan Fraud

The COVID-19 pandemic brought about an economic downturn, and the Small Business Administration presented the Paycheck Protection Program to provide financial relief for small business owners and protect jobs. This program brought relief for many businesses, but it also opened the door to fraudulent activity. As a result, the Department of Justice (DOJ) has become involved in investigating many cases of PPP loan fraud.

If your business or you, as an individual, has been accused of PPP loan fraud and is under investigation by the DOJ or any other federal agency, it is essential to take immediate action to safeguard yourself and your business. Here are some critical steps that you can take to secure the future of your business and evade prosecution.

Hire a Competent Federal Criminal Defense Attorney

If your business is under investigation for PPP loan fraud, you should consider hiring an experienced federal criminal defense attorney immediately. Our attorneys at Spodek Law Group are experienced in defending clients who face federal charges. We can assist you in investigating the allegations, developing a defense strategy, and representing you in court.

Cooperate with the Federal Investigators

If you or your company is under investigation for PPP loan fraud, it is vital to cooperate with the federal investigators fully. The DOJ and other federal agencies investigating PPP loan fraud have extensive power to investigate, and non-cooperation can lead to serious charges. Cooperating with investigators could also help minimize the level of punishment that you may face.

Familiarize Yourself with the Charges Against You

To prepare a solid legal defense strategy, it is crucial to understand the potential charges leveled against you in a PPP loan fraud investigation. The federal government has several legal provisions that they can use to charge either individuals or companies for PPP loan fraud. These include making false statements, bank and wire fraud, tax evasion, and conspiracy. Knowing the possible charges against you and their severe implications can help you plan a robust defense strategy.

Document Everything

Documenting everything related to your PPP loan activities, such as how you used the money, can help prove your innocence if you face fraudulent charges. Keep detailed records of all transactions, including records of when and how you used the loan money.

Speak Carefully with Federal Investigators

It is crucial to be cautious when speaking to the federal investigators. Anything you say can be used against you in court. Even if you are confident that you are innocent, it is to have an attorney present during all your conversations with investigators to avoid giving them any sensitive information that could later be used against you in court.

Potential Defense Strategies Against PPP Loan Fraud Accusations

Several defense strategies can be used in a PPP loan fraud investigation. Some of these strategies include:

Demonstrating Compliance with PPP Loan Terms – Proving compliance by demonstrating that you obtained a PPP loan legally, created a segregated PPP loan account, and documented your usage of funds meticulously.

Lack of Intent – To bring criminal charges against you, prosecutors must prove that there was an intent to defraud. Demonstrating that you lawfully obtained a PPP loan, funds were not used for unauthorized activities, or that you did not commit fraud while applying for a PPP loan or submitting a forgiveness application can help you prevent incarceration.

Retaining Documentation – It is essential to maintain adequate records and documentation to prove your innocence. Keep track of when and how you used the loan funds, how you calculated the loan amount, and relevant data that could be useful in the PPP loan fraud investigation.

Conclusion

The Department of Justice and other federal agencies are actively investigating PPP loan fraud cases, and non-compliance could lead to prosecution, huge fines, and imprisonment. If your business or you, an individual, are under investigation for PPP loan fraud, you must take steps to protect your rights, your business, and your future. Hire a seasoned attorney, cooperate with investigators, understand the charges leveled against you, document everything, and be careful when speaking to federal agents. Get in touch with Spodek Law Group today to learn more about how to safeguard your rights in a PPP loan fraud investigation.