Corpus Christi PPP – SBA – EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program were created by the federal government to provide financial assistance to small businesses struggling during the COVID-19 pandemic. While these programs offered a lifeline to many legitimate businesses, some people took advantage of the emergency funds by committing fraud. In Corpus Christi and across Texas, authorities are cracking down on PPP and EIDL fraud cases. If you are being investigated or charged for allegedly fraudulent loans, it is critical to have an experienced defense lawyer on your side.

Understanding the PPP and EIDL Programs

The PPP offered forgivable loans to help cover payroll and other expenses during pandemic shutdowns. To qualify, applicants had to certify that the funds were necessary to support ongoing operations. The EIDL program provided low-interest loans for working capital and normal operating expenses. Both programs relied heavily on self-certification from applicants with minimal upfront verification.

With billions of dollars flowing rapidly into these emergency programs, opportunists submitted fraudulent loan applications, falsified payroll and tax documents, spent funds improperly, and misrepresented business information. With so much money flowing out rapidly, oversight was initially lacking. But federal and state investigators are now scouring loan applications for fraud. In Corpus Christi, the U.S. Attorney’s Office for the Southern District of Texas is filing charges against PPP and EIDL scammers. Defendants are facing serious consequences like multi-year prison sentences and orders to repay all funds.

DEFENSE TEAM SPOTLIGHT

Todd Spodek

Lead Attorney & Founder

Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

NY Bar Admitted Multi-State Licensed Federal Courts

Meet the Full Team

Legal Scenario: What Would You Do?

Scenario

You submitted a PPP loan application during COVID and now realize some employee count numbers may have been inaccurate.

Could this be considered fraud?

Attorney's Answer

Inaccuracies in PPP applications can trigger federal fraud charges carrying up to 20 years in prison. However, honest mistakes differ from intentional misrepresentation. Documentation of your good-faith efforts is critical to your defense.

This is general information only. Contact us for advice specific to your situation.

Common PPP and EIDL Fraud Schemes

Common PPP and EIDL fraud schemes include:

• Applying for multiple loans for non-existent businesses
• Inflating payroll numbers to receive larger loan amounts
• Using business names without permission or claiming fake employees
• Spending funds on unauthorized personal purchases
• Lying about having an active business to qualify
• Falsifying tax and employment records