Free Consultations & We're Available 24/7
WE'RE A BOUTIQUE LAW FIRM. YOU WORK WITH ONE OF OUR SENIOR ATTORNEYS PERSONALLY.
WE'RE ONE OF NEW YORK'S OLDEST CRIMINAL DEFENSE LAW FIRMS. TRUST 50 YEARS OF EXPERIENCE.
WE SERVICE CLIENTS NATIONWIDE, WITH OFFICES IN LOS ANGELES AND NYC.
Defending Against DOJ Investigations for PPP Loan Fraud: Protect Your Interests
In response to the Covid-19 pandemic, the Paycheck Protection Program (PPP) was introduced to assist businesses to pay their employees and stay afloat. However, the PPP has also become a target for fraudulent activities, leading to widespread investigations by the U.S. Department of Justice (DOJ). The Federal agents are actively pursuing PPP loan fraud investigations and are pressing criminal charges against individuals and companies engaging in these offenses. If you are currently under investigation for PPP loan fraud by the DOJ, here is what you should know to protect your interests.
The DOJ Means Business
The DOJ is aggressively pursuing charges against individuals and companies suspected of committing PPP loan fraud due to the massive cost and the resulting widespread fraud publicity. The DOJ is taking the fraud cases seriously and is fully investigating them. A recent press release by the DOJ states;
“The Paycheck Protection Program was designed to help Americans struggling with financial hardship during the pandemic. Our office will be aggressive in targeting anyone who defrauds this critical program.”
There are Many Potential Defenses
Those accused of PPP loan fraud have potential defenses they can use in their favor during an investigation, including demonstrating compliance with the PPP program’s terms or showing the lack of intent to defraud. Individuals and companies must reveal other relevant facts that can offer a strong defense. However, asserting these defenses successfully requires an in-depth understanding of the PPP program, federal statutes, and defense strategies.
Potential Charges in Federal PPP Loan Fraud Investigations
Individuals and businesses fraudulently obtaining a loan through the PPP program can face various charges under pre-existing federal statutes. These charges can incur substantial penalties, such as enormous fines, treble damages, loss of eligibility for federal programs, and other severe penalties. Below are some potential charges:
Making False Statements to the Small Business Administration (SBA) (18 U.S.C. § 1014)
Individuals and businesses charged with making false statements with the intent to influence the SBA’s action can face criminal charges under 18 U.S.C. ¬ß 1014. These false statements include those made on borrower application forms and certifications for loan forgiveness.
Making False Statements to an FDIC-Insured Bank (18 U.S.C. § 1014)
Where false information is submitted to financial institutions, individuals, and businesses can also be prosecuted under 18 U.S.C. § 1014.
Bank Fraud (18 U.S.C. § 1344)
Individuals and businesses can face this charge for attempting or executing a scheme or artifice to defraud a financial institution under 18 U.S.C. § 1344. This includes obtaining funds by making false or fraudulent pretenses, representations, or promises.
Wire Fraud (18 U.S.C. § 1343)
Under 18 U.S.C. § 1343, individuals and businesses can be prosecuted for using the internet to carry out any scheme or artifice to defraud or obtain money or property through false pretenses.
Aggravated Identity Theft (18 U.S.C. § 1028A)
Individuals can face charges under 18 U.S.C. ¬ß 1028A for using someone else’s identification to commit certain felony offenses, including bank and wire fraud.
Tax Evasion (26 U.S.C. § 7201)
Individuals and businesses can face charges under 26 U.S.C. § 7201 for attempting to evade or defeat tax. This includes payroll tax evasion, such as unlawfully claiming deductions on payroll expenses covered by PPP loans, and income tax evasion, such as failing to report income derived from business activities funded by PPP loans.
Making False Statements to Federal Agents (18 U.S.C. § 1001)
Individuals and businesses can face charges of falsifying, concealing, or covering up a significant fact, and making a fraudulent statement or representation under 18 U.S.C. § 1001.
Conspiracy (18 U.S.C. § 371 and 18 U.S.C. § 1349)
Multiple individuals and companies engaging in fraudulent activities can be prosecuted under 18 U.S.C. § 371 and 18 U.S.C. § 1349.
Attempt (18 U.S.C. § 1349)
Individuals can face charges under 18 U.S.C. § 1349 for attempting to commit PPP loan fraud.
False Claims Act Violations (31 U.S.C. §§ 3729 – 3733)
Intentional or unintentional fraud targeting a federal government program such as the PPP may lead to civil or criminal charges under the False Claims Act.
Why Choose Todd Spodek as Your Defense Attorney?
The Todd Spodek Law Group has experience in defending individuals and businesses charged with PPP loan frauds. Our attorneys have a deep understanding of defense strategies, federal statutes, and the PPP program. We are committed to defending your rights, your interests, and your freedom. Contact us today for a confidential, no-obligation consultation.
Table on Potential Charges in Federal PPP Loan Investigations
| Charge | Description |
|---|---|
| Making False Statements to the Small Business Administration (SBA) (18 U.S.C. § 1014) | Individuals and businesses accused of making false statements or reports for the purpose of influencing the action of the SBA can face criminal charges under 18 U.S.C. § 1014. These false statements can include statements made on borrower application forms and certifications for loan forgiveness. |
| Making False Statements to an FDIC-Insured Bank (18 U.S.C. § 1014) | Individuals and businesses that submit false information to financial institutions can be prosecuted under 18 U.S.C. § 1014, often used together with false statements to the SBA. |
| Bank Fraud (18 U.S.C. § 1344) | Individuals and businesses can face charges under 18 U.S.C. § 1344 for executing or attempting to execute a scheme or artifice to defraud a financial institution. This includes obtaining funds by false or fraudulent pretenses, representations, or promises. |
| Wire Fraud (18 U.S.C. § 1343) | Individuals and businesses can be prosecuted under 18 U.S.C. § 1343 for using the internet to execute any scheme or artifice to defraud or to obtain money or property under false pretenses. |
| Aggravated Identity Theft (18 U.S.C. § 1028A) | Individuals can face charges under 18 U.S.C. § 1028A for using a means of identification belonging to another person to commit certain felony offenses, which can include bank and wire fraud. |
| Tax Evasion (26 U.S.C. § 7201) | Individuals and businesses can face charges for attempting to evade or defeat tax under 26 U.S.C. § 7201. This includes payroll tax evasion, such as unlawfully claiming deductions for payroll expenses covered by PPP loans, and income tax evasion, such as failing to report income derived from business activities funded by PPP loans. |
| Making False Statements to Federal Agents (18 U.S.C. § 1001) | Individuals and businesses can face charges of falsifying, concealing, or covering up a material fact, and making a materially false, fictitious, or fraudulent statement or representation or document under 18 U.S.C. § 1001. |
| Conspiracy (18 U.S.C. § 371 and 18 U.S.C. § 1349) | Multiple individuals and companies involved in fraudulently obtaining federal funds through the PPP can be prosecuted under 18 U.S.C. § 371 and 18 U.S.C. § 1349. |
| Attempt (18 U.S.C. § 1349) | Individuals can face charges under 18 U.S.C. § 1349 for attempting to commit PPP loan fraud. |
| False Claims Act Violations (31 U.S.C. §§ 3729 – 3733) | Intentional or unintentional fraud targeting a federal government program such as the PPP can lead to civil or criminal charges under the False Claims Act. |
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
CALIFORNIA CRIMINAL DEFENSE ATTORNEYS