Top Federal Lawyers.

nyc criminal lawyers over 30 years of experienceWe Know How
To Win Cases

Spodek Law Group handles tough cases
nationwide, that demand excellence.

Get Free Consultation

Kansas PPP and EIDL Loan Fraud Lawyers

By Spodek Law Group | March 18, 2023
(Last Updated On: March 18, 2023)

The Paycheck Protection Program (PPP) was established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020, to help small and medium-sized businesses that were facing financial constraints due to the economic impacts of the COVID-19 pandemic. This program was created to provide financial relief to businesses and individuals affected by the novel coronavirus. The Paycheck Protection Program was endowed with nearly $350 billion in federal funds, but it was quickly depleted, leaving many eligible companies unable to receive loans. Due to the extraordinary rate at which the PPP ran out of funds, the U.S. Treasury Department and other agencies handling the program are investigating potential fraud and have expressed concern about the lack of organization in the application process. Therefore, companies that received PPP loans should anticipate increased scrutiny and the possibility of heavy penalties.

Fraud Concerns Related to PPP
The disorganized rollout of the PPP system and past instances of fraud related to similar federal relief programs raised concerns about the program’s integrity. The U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) is seeking input from lenders on how to address the issues that have arisen with the program, including identifying fraud. The OCC will focus specifically on “loan stacking,” where one company receives PPP loans from multiple lenders. As part of the PPP application process, there were eligibility criteria and certifications that companies had to meet. Misrepresentation of any information could lead to allegations of federal fraud. In addition, the improper use of PPP funds could also result in allegations of fraud.

How to Prove Compliance with PPP Requirements
Companies that received funds from the PPP should take measures to prove that they are in compliance with program requirements. The U.S. Treasury Department’s Paycheck Protection Program Information Sheet states that companies can face criminal charges if they use the proceeds for fraudulent purposes. This warning highlights the risks that companies face when they fraudulently obtain loans through the PPP. Individuals who are personally involved in fraudulent activities, such as company owners and executives, could face criminal fines and decades behind bars.

Allegations of Fraud in Relation to PPP
There are several types of alleged fraud in relation to the PPP, including fraudulent loan certification, fraudulent loan forgiveness certification, misrepresenting or concealing information during a PPP audit or investigation, and using PPP funds for ineligible business purposes. To request loan forgiveness, companies must provide documentation that they have met eligibility criteria and used their PPP funds for eligible expenses. If audited or investigated, companies must avoid making misrepresentations or concealing pertinent information.

Importance of Engaging Experienced Federal Defense Counsel
In the event that a company is audited or investigated for PPP loan fraud, it is essential to engage experienced federal defense counsel immediately. This is a serious matter that requires your immediate attention, and you will need to rely on the advice and representation of experienced attorneys who know how to fend off federal charges. The defense counsel can help protect your rights if your company is targeted for PPP loan fraud. At Spodek Law Group, our federal defense attorneys provide legal services to clients facing a broad range of issues related to the COVID-19 pandemic. We have extensive experience in defending clients against allegations of PPP loan fraud and can use our experience to protect you.

Table: Allegations of PPP Loan Fraud

| Type of PPP Loan Fraud | Description |
| — | — |
| Loan “Stacking” | Companies that receive PPP loans from multiple lenders |
| PPP Loan Application Fraud | Misrepresentation of eligibility criteria on loan applications |
| Fraudulent Loan Certification | Certifying to various facts in bad faith |
| Using PPP Funds for Ineligible Business Purposes | Using PPP funds for any purpose other than payroll costs, interest on mortgage obligations, rent, and utilities |
| Using PPP Funds for Fraudulent Purposes | Using the funds for fraudulent activities among personnel or clients |
| Fraudulent Loan Forgiveness Certification | Providing fraudulent documentation to request loan forgiveness |
| Misrepresenting Information During a PPP Audit or Investigation | Failing to comply with the audit or investigation by disclosing false information |

Free Consultation


I was searching for a law firm with some power to help me deal with a warrant in New York . After 6 days I decided to go with Spodek Law Group. It helped that This law firm is well respected by not only the top law firms in New York , but the DA , Judge as well. I...

~Fonder Brandon

5 Stars
It was my good fortune to retain Spodek Law Group for representation for my legal needs. From the beginning, communication was prompt and thorough. Todd, Kenneth and Alex were the first people I worked with and they all made me feel comfortable and confident that the team was going to work hard for me. Everything was explained and any concerns...

~A G

5 Stars
After meeting with several law firms, I chose the Spodek Law Group not only for their professionalism and experience, but for the personal attention given to me right from the initial consultation. It is important to recognize how crucial having the right legal team is when faced with potentially life altering events that impact families and the lives of loved...

~George Cherubini

Spodek Law Group

White Glove Service

We Provide Superior Service, Excellent Results, At A Level Superior To Other Criminal Defense Law Firms. Regardless Of Where Your Case Is, Nationwide, We Can Help You.
View More

Request Free Consultation

Please fill out the form below to receive a free consultation, we will respond to
your inquiry within 24-hours guaranteed.


85 Broad St 30th Floor, New York, NY 10004


get directions

Los Angeles

611 S Catalina St Suite 222, Los Angeles, CA 90005


get directions


35-37 36th St, 2nd Floor Astoria, NY 11106


get directions


195 Montague St., 14th Floor, Brooklyn, NY 11201


get directions
Call Now!