CALIFORNIA CRIMINAL LAWYERS

Vermont PPP and EIDL Loan Fraud Lawyers

PPP Loan Fraud Investigations: Protect Your Business

The Paycheck Protection Program (PPP) has been a lifeline for businesses struggling amidst the economic impact of the COVID-19 pandemic. However, bad actors have taken advantage of the program, leading to a crackdown by the Department of Justice (DOJ) on PPP loan fraud cases. With charges already filed against businesses and individuals for submitting fraudulent PPP loan applications and making unauthorized use of PPP loan funds, it is crucial to be aware of the DOJ’s intent to prosecute individuals and companies for PPP loan fraud.

Vigorous DOJ Prosecution of PPP Loan Fraud

The DOJ is ferociously pursuing charges in PPP loan fraud cases, having already charged individuals with making false PPP loan applications and unauthorized use of PPP loan funds. This aggressive stance is due to the large amount of money involved in PPP loan fraud and the program’s critical nature. The high publicity garnered by fraud targeting the PPP only adds to the DOJ’s resolute investigations.

DOJ Collaborations in Targeting PPP Loan Fraud

The DOJ is leveraging its partnerships with other federal agencies such as the SBA-OIG, FDIC-OIG, FBI, and IRS-CI to ensure that no instance of PPP loan fraud goes unaddressed. Therefore, businesses must be aware that PPP loan fraud charges could come from multiple agencies.

Defending Your Business Against DOJ PPP Loan Fraud Charges

Several defenses can be raised against allegations of PPP loan fraud, including specific PPP program defenses, compliance defenses, and defense for lack of intent to defraud. Compliance defenses involve businesses showing that they obtained lawful PPP loans and appropriately utilized the funds. To better defend your business during a DOJ PPP loan fraud investigation, establishing a segregated PPP loan account and documenting appropriate fund use could be helpful.

The lack of intent defense implies that businesses did not intend to commit PPP loan fraud. Proving lack of intent can result in a civil violation of the False Claims Act, leading to lower penalties than would arise from an intentional violation of the Act.

Potential Charges in Federal PPP Loan Fraud Investigations

PPP loan fraud can lead to criminal and civil charges under multiple federal laws, such as the False Claims Act and pre-existing federal statutes, such as:
* Making False Statements to the Small Business Administration (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)
The DOJ has already filed charges relating to PPP loan fraud under several of these statutes, which carry severe legal consequences such as civil suits, fines, prison sentences, and more.

Protecting Your Business During a DOJ Investigation for PPP Loan Fraud

If your business is facing a DOJ investigation for PPP loan fraud, hiring an experienced defense attorney immediately is critical. At Spodek Law Group, our experienced criminal defense attorneys can guide you through the DOJ investigation process and aggressively defend your rights in court. Contact us today for a free consultation. As the repercussions of PPP loan fraud cases can be far-reaching, it is imperative to put in place measures to avoid the misappropriation of PPP loan funds.