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Defending Your Business Against DOJ Investigations for PPP Loan Fraud: Essential Information for Vigorous Defense

The COVID-19 pandemic has severely impacted the economy, resulting in the creation of the Paycheck Protection Program (PPP). Its primary purpose was to assist small businesses and provide financial aid during this economic crisis. However, fraudulent individuals have taken advantage of this program, so the U.S. Department of Justice (DOJ) is investigating fraud allegations and actively looking for evidence to prove that fraud has transpired. If you are under investigation by the DOJ for PPP loan fraud, it is vital to know all the information to ensure a vigorous defense against federal charges.

The DOJ’s Aggressive Pursuit of PPP Loan Fraud
The DOJ has made it their mission to protect the Paycheck Protection Program and the economy as a whole from fraudulent activities. Due to the enormity of illicit activities committed, they have vigorously targeted individuals and companies suspected of PPP loan fraud by filing charges based on several cases, such as the creation of shell companies to acquire PPP loans, improper use of PPP funds for non-approved business and personal expenses, and falsifying payroll information.

Collaboration among Federal Law Enforcement Agencies
The DOJ collaborates with other federal law enforcement 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) to fight PPP loan fraud. Together, they are working towards a common goal to prosecute individuals and companies for PPP loan fraud effectively.

Defenses Against PPP Loan Fraud Allegations
Individuals and companies facing investigations for PPP loan fraud are at significant risk of criminal charges. However, adequate defenses that could disprove or mitigate their innocence can be asserted. The first line of defense is demonstrating compliance with PPP terms, sufficient documentation of PPP fund usage, and setting up a separate PPP loan account. Lack of intent or unintentional fraud can also serve as a viable defense against PPP loan fraud allegations. Though the government is cracking down on PPP fraud, it is crucial to remember that everyone is innocent until proven guilty. A suitable defense in court can also make all the difference.

Potential Criminal Charges
The DOJ may pursue criminal charges against individuals or companies who made false statements with the intention of defrauding the Paycheck Protection Program. The following are federal statutes with the potential of legal penalties against perpetrators who violate the rules of PPP loan fraud investigations:
– Making false statements to the Small Business Administration (SBA)
– Making false statements to an FDIC-insured bank
– Wire fraud
– Aggravated identity theft
– Tax evasion
– Making false statements to federal agents
– Conspiracy
– Attempt
– False Claims Act violations

Conclusion
Facing PPP loan fraud allegations or a DOJ investigation is a serious matter. Protect yourself and your legal interests by seeking an experienced attorney. At Todd Spodek Law, we have a team of competent attorneys ready to vigorously represent you in PPP loan fraud investigations. We understand the enormous consequences such allegations could have, including fines, loss of business, and imprisonment. Call us now for a free consultation and let us help you formulate the defense possible.