CALIFORNIA CRIMINAL LAWYERS

Portland PPP and EIDL Loan Fraud Lawyers

What You Need to Know If You’re Facing a DOJ Investigation for PPP Loan Fraud?

The COVID-19 pandemic led to a record-breaking government intervention in the U.S. economy. Among them is the Paycheck Protection Program (PPP), which provides forgivable loans to small businesses in need. However, this implementation process has been surrounded by issues, mainly fraud. The rise of PPP loan fraud has alarmed the Department of Justice (DOJ), leading to an aggressive pursuit of individuals and companies involved in PPP loan fraud. If you are facing a DOJ investigation for PPP loan fraud, it is essential to have skilled legal representation to guide you through the process. In this article, we discuss everything you need to know about this matter, with insights from Todd Spodek, a highly respected New York-based attorney with over a decade of experience.

The DOJ’s Intention to Prosecute Individuals and Companies for PPP Loan Fraud

Reports have been circulating, citing how people and businesses have exploited the Paycheck Protection Program (PPP). As a result, the DOJ has turned its focus to identifying individuals and companies unlawfully using PPP loans. Todd Spodek emphasizes that the DOJ is specifically targeting those who submitted fraudulent loan applications, misused PPP funds, and gave fraudulent certifications for PPP loan forgiveness. In a recent DOJ release, it was made clear, “The department is aggressive in targeting anyone who defrauds this critical program.”

The DOJ’s Active Pursuit of Charges in Numerous PPP Loan Fraud Cases

The DOJ has already filed charges against numerous individuals and companies for PPP loan fraud. Todd Spodek notes that the DOJ’s offices have been flooded with PPP fraud cases, making PPP loan fraud one of the most prosecuted categories of fraud offenses in recent times. People have been falsely charged with certifications, payroll falsification, and shell companies. The DOJ has successfully prosecuted those guilty of PPP loan fraud, and this further shows their commitment to fighting this COVID-19-related fraud.

DOJ’s Collaboration with Other Federal Law Enforcement Agencies to Target All Forms of PPP Loan Fraud

It is not just the DOJ that is tackling PPP loan fraud. Multiple federal agencies, such as the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Federal Bureau of Investigation (FBI), and Internal Revenue Service Criminal Investigations (IRS-CI), are working in collaboration to uncover and prosecute people and companies that have illegally taken advantage of the PPP. With a united front against any form of PPP loan fraud, the team’s ability to combat fraudulent activities has been strengthened.

Potential Charges in Federal PPP Loan Fraud Investigations

PPP loan fraud could lead to severe legal consequences. While the CARES Act does not contain penal provisions for PPP loan fraud, offenders can still face civil and criminal charges under various federal statutes. Todd Spodek notes that individuals and companies could be charged with different federal offenses like making false statements, bank fraud, wire fraud, aggravated identity theft, conspiracy offenses, or false claims act violations, depending on the specific circumstances of each case.

Potential Defenses in Federal PPP Loan Fraud Investigations

Being accused of PPP loan fraud or similar white-collar crimes can be daunting. However, several defenses could come in handy, depending on the specific allegations and the case’s circumstances. Todd Spodek suggests the first line of defense is demonstrating compliance with PPP regulations, which includes legally qualifying for the PPP loan, documenting the appropriate use of PPP funds and segregating the PPP loan account. He adds that an individual or business without intent may not be guilty of fraud, as the DOJ must establish that an offense was intentionally committed. Todd Spodek also indicates other defenses depending on the allegations of PPP loan fraud.

Working with Todd Spodek, a Highly Experienced PPP Loan Fraud Attorney

It is important to work with an experienced PPP loan fraud attorney to plan and prepare your defense against the DOJ’s allegations. Todd Spodek brings over a decade of experience in defending and assisting clients in PPP loan fraud cases and navigating complex white-collar criminal prosecutions. He can help negotiate a plea deal or take you through trial, appeal, and minimize legal and financial consequences. If you are facing a DOJ investigation for PPP loan fraud, contact Todd Spodek today.