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Long Beach PPP and EIDL Loan Fraud Lawyers

What to Do If You Face DOJ Investigation for PPP Loan Fraud

The Paycheck Protection Program (PPP) was initially established to provide relief for individuals and companies affected by COVID-19. However, it quickly became a target for fraudulent activities. Consequently, the U.S. Department of Justice (DOJ) is pursuing investigations to uncover evidence of PPP loan fraud. If you or your business is implicated in a DOJ investigation for PPP loan fraud, it is crucial to understand the potential consequences and defenses available to you.

The DOJ is Serious About Prosecuting PPP Loan Fraud

Based on the significant losses resulting from PPP loan fraud, the DOJ is aggressively pursuing targets suspected of PPP loan fraud. The DOJ has already launched multiple investigations and filed several lawsuits against businesses and individuals accused of committing PPP loan fraud. In highlighting their efforts, the DOJ has emphasized an aggressive stance towards anyone found to have defrauded this critical program, emphasizing the imposition of federal charges.

Numerous Federal Agencies are Investigating PPP Loan Fraud

The DOJ is not acting alone in its efforts to investigate PPP loan fraud. It is collaborating with other federal agencies, including the U.S. Small Business Administration Office of Inspector General (SBA-OIG), the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the Federal Bureau of Investigation (FBI), and the Internal Revenue Service Criminal Investigations (IRS-CI).

Potential Charges in Federal PPP Loan Fraud Investigations

PPP loan fraud is a severe offense that cannot be dismissed only by the absence of specific provisions in the CARES Act. PPP loans are protected by several pre-existing federal statutes, including but not limited to tax evasion, aggravated identity theft, bank fraud, wire fraud, false statements, conspiracy, and attempt to commit fraud to claim PPP loans.

Defenses for Individuals and Businesses Accused of PPP Loan Fraud

Several defenses can be used by individuals and companies accused of PPP loan fraud by DOJ. The most common defenses are:

– PPP Compliance. Providing documentation of PPP loan compliance can be an essential defense for many individuals and businesses. It can lead to a quick resolution of the case. However, vigilance is necessary when voluntarily sharing information with the DOJ to avoid adverse consequences.
– Lack of Intent to Defraud. Federal laws require the intent to defraud before any criminal conduct is established. Hence, if an individual or company inadvertently received a PPP loan despite being ineligible, made improper use of the funds, or submitted a fraudulent forgiveness certification, their lack of malicious intent could potentially provide a valid defense. However, civil penalties can still be pursued, and they can be severe.
– Professional Legal Assistance. Individuals and companies accused of PPP loan fraud require professional legal assistance urgently. The DOJ has considerable resources, and seeking the services of a reputable law firm like Todd Spodek can provide an edge in developing strategies to navigate the legal complexities of the case. A skilled legal team can analyze the case to identify weaknesses, assert all available defense, and negotiate on behalf of the client.

Conclusion

PPP loan fraud is a serious offense that could attract significant penalties if established. The DOJ is taking PPP loan fraud seriously, and individuals or businesses facing investigation must secure professional legal assistance immediately. At Todd Spodek, we provide legal defense against PPP loan fraud allegations. Our team of experienced attorneys can analyze your case and develop a defense strategy that ensures the possible outcome.