CALIFORNIA CRIMINAL LAWYERS

North Dakota PPP and EIDL Loan Fraud Lawyers

What Should You Do If You’re Accused of PPP Loan Fraud?
The Paycheck Protection Program (PPP) was developed by the federal government in response to the COVID-19 pandemic to provide financial support to small businesses. Sadly, some individuals and companies exploited this program and committed fraud. This has led to an increase in fraud investigations and charges by the Department of Justice (DOJ). If you are under investigation for PPP loan fraud, you need to take immediate and strategic steps to shield your legal rights and interests.

What is PPP Loan Fraud?
PPP loan fraud is any act of deceitful practices by individuals or companies that submit fake information or certifications to secure PPP loans, or use PPP loan funds for unauthorized purposes. They may also falsify payroll or tax records and certifications to qualify for PPP loan forgiveness.

The DOJ is actively investigating businesses that committed PPP loan fraud, and in multiple court proceedings, they have charged countless individuals and companies.

What to do if Accused of PPP Loan Fraud
Being accused of PPP loan fraud can be a daunting and stressful experience. The following measures are things you should consider doing if this happens to you:

1. Secure the services of an experienced PPP Loan Fraud Attorney
Your priority should be to hire an attorney experienced in PPP loan fraud cases. At Spodek Law Group, we have a deep understanding of these cases, including the laws and regulations revolving around PPP. We can help protect your legal rights and interests while employing several defense strategies to give your defense the chance.

2. Refrain from speaking to Law Enforcement Agents without your lawyer present
When under investigation for PPP loan fraud, it’s crucial to avoid speaking to law enforcement agents before your attorney comes. Everything you say can be used against you in court, so it’s important to have legal representation during interviews with law enforcement.

3. Keep all Relevant Documents
The accused should gather every document related to their PPP loan and how the funds were allocated. Such documents may include bank statements, loan applications, payroll records, and tax documents. An experienced attorney can assist in knowing which documents are essential to the case and those that are not.

4. Be Honest and Transparent with Your Attorney
Honesty and transparency with your lawyer are fundamental to obtaining positive results. You need to be completely candid with your attorney regarding your PPP loan, its application, and the utilization of the funds. Your attorney needs a complete understanding of your situation to develop a strong defense strategy.

Defenses to PPP Loan Fraud Charges
If you’re being charged with PPP loan fraud, different defenses may apply to your case. The following options are defenses that are applicable to PPP loan fraud cases:

1. Compliance with PPP Loan Program
To build a defense, you need to establish that you followed the rules outlined in PPP loan procedures, such as establishing a segregated PPP loan account and utilizing the funds only for eligible expenses.

2. Lack of Intent to Defraud
If there is no evidence of intent to defraud, the prosecution has no case. Even if you received a PPP loan or utilized the funds inappropriately, an attorney with expertise in PPP loan fraud defense can present your defense with high chances of success.

3. Lack of Knowledge
The lack of knowledge is a viable defense in PPP loan fraud cases; proving that there was no knowledge of fraudulent practices can help to build a robust defense.

Potential Penalties for PPP Loan Fraud
If found guilty of PPP loan fraud, severe legal and financial consequences await. Such penalties include incarceration, hefty fines that could reach $1,000,000 or more, repayment of fraudulently obtained funds, and forfeiture of assets acquired with the fraudulent proceeds. Proving guilt may be detrimental to your personal and professional reputation.

Conclusion
In conclusion, PPP loan fraud is a severe crime with long term consequences. Therefore, immediate action should be employed by the accused to safe-guard themselves legally and financially. If you’re facing PPP loan fraud charges, hire an attorney experienced in federal fraud cases, collect relevant documents and be transparent with your attorney. Spodek Law Group consists of experienced PPP loan fraud attorneys who can help you build a strong legal defense against PPP loan fraud allegations.