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What Should You Do If You’re Under Investigation for PPP Loan Fraud?
The COVID-19 pandemic has brought many challenges to small businesses, and the Paycheck Protection Program (PPP) has been a lifeline for many of them. However, there have been reports of fraud committed by some individuals and companies, resulting in investigations and charges by the Department of Justice (DOJ). If you are being investigated for PPP loan fraud, you must take action immediately to protect your legal rights and interests.
What Is PPP Loan Fraud?
PPP loan fraud is a federal crime that occurs when an individual or a company submits false information or certifications to receive a forgivable loan under the PPP program. PPP loan fraud can take many forms, including submitting false information on a PPP loan application, using PPP loan funds for unauthorized expenses, falsifying payroll or tax records to obtain PPP loan, and submitting false certifications to obtain PPP loan forgiveness.
The DOJ is actively investigating suspected instances of PPP loan fraud and has already filed charges in several cases. If you’re facing an investigation for PPP loan fraud, it’s essential to know what you should do next.
Steps To Consider If You’re Facing A DOJ Investigation
Here are the four important steps you should consider taking immediately:
1. Hire An Experienced PPP Loan Fraud Attorney: The first step to take when facing a DOJ investigation is to hire an experienced PPP loan fraud attorney. You need an attorney who understands the laws and regulations surrounding the PPP program as these cases can be complex. At Spodek Law Group, we have the necessary experience required to represent you in federal fraud cases, including PPP loan fraud. We will ensure that your legal rights and interests are protected.
2. Don’t Speak To Law Enforcement Agents Without Your Attorney Present: If you are under investigation for PPP loan fraud, you must not speak to law enforcement agents without your attorney present. Anything you say can be used against you in court, so it’s critical to have legal representation during any interactions with law enforcement.
3. Collect All Relevant Documents: If you are under investigation for PPP loan fraud, you must gather all relevant documents related to your PPP loan and its use. This includes loan applications, certifications, payroll records, tax documents, and bank statements. Your attorney can help you identify which documents are relevant to your case.
4. Be Transparent With Your Attorney: You must be transparent and honest with your attorney about all aspects of your PPP loan, including its use and any communications you’ve had with law enforcement agents. Your attorney needs to understand your situation fully to develop a robust defense strategy that protects your legal rights and interests.
Defenses To PPP Loan Fraud Charges
If you are charged with PPP loan fraud, there are three potential defenses that may apply to your case:
1. Compliance With The PPP Loan Program: If you took out a PPP loan, created a segregated PPP loan account, and used the funds for eligible expenses, you may be able to assert a compliance defense.
2. Lack of Intent To Defraud: Criminal culpability under the PPP loan program requires the intent to defraud. If you did not have the intention to commit fraud but unwittingly obtained a PPP loan or used PPP loan funds improperly, this defense may apply.
3. Lack Of Knowledge: If you were not aware that your actions amounted to fraud, you may be able to use the lack of knowledge defense.
Potential Penalties For PPP Loan Fraud
PPP loan fraud is a severe crime with severe legal and financial consequences. The potential penalties for PPP loan fraud include:
– Imprisonment: PPP loan fraud is a federal crime that carries significant jail time.
– Fines: Penalties for PPP loan fraud can include fines of up to $1,000,000, or more.
– Restitution: You may be required to repay the funds obtained fraudulently.
– Asset Forfeiture: The government may seize any assets obtained with fraudulently obtained proceeds.
– Damage To Reputation: A criminal conviction for PPP loan fraud can have long-term consequences for your professional and personal reputation.
Conclusion
If you are being investigated for PPP loan fraud, it’s crucial to take immediate action to protect your legal rights and interests. You must hire an experienced PPP loan fraud attorney who can help you through the process. At Spodek Law Group, we are well-versed in federal fraud cases, including PPP loan fraud. We will work tirelessly to protect your legal rights and interests and give you the possible defense. Don’t wait to contact us now if you are under investigation.
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