Louisiana PPP – SBA – EIDL Loan Fraud Lawyers

Louisiana PPP – SBA – EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program were created by the federal government in 2020 to provide emergency relief for small businesses impacted by the COVID-19 pandemic. While these programs were a lifeline for many legitimate businesses, the rushed rollout and lack of oversight also led to widespread fraud.

In Louisiana, PPP and EIDL fraud has become a major issue. Federal prosecutors in the state are aggressively going after individuals and companies accused of illegally obtaining or misusing these COVID relief funds. For those charged, the stakes are high and penalties severe if convicted. Having an experienced legal defense team can be crucial.

This article will provide an in-depth look at how PPP and EIDL fraud cases work in Louisiana, potential defenses, and tips on finding the right lawyer if you are under investigation or facing charges.

How PPP and EIDL Fraud Happens in Louisiana

There are several common schemes that federal investigators in Louisiana are seeing, including:

• Falsified loan applications – Exaggerating number of employees, payroll, revenue etc. to get larger loan amounts or qualify for loans the business wasn’t eligible for. Fake tax documents are often submitted.
• Fake businesses – Applying using shell companies, inactive entities, or completely fabricated businesses just to collect loan funds for personal use.
• Identity theft – Using stolen personal information to fraudulently apply for loans under someone else’s name.
• Kickback schemes – Bribing or paying kickbacks to loan officers, brokers, or insiders to facilitate fraudulent loans.
• Misuse of funds – Spending loan proceeds on unauthorized personal purchases instead of approved business expenses like payroll.

Prosecutors say these schemes have cost billions in losses to taxpayers. And they are aggressively pursuing charges.

Charges and Penalties for PPP and EIDL Fraud

In Louisiana, PPP and EIDL fraud cases are primarily handled by the U.S. Attorney’s Office for the Eastern and Western Districts of Louisiana. Common criminal charges include:

• Wire fraud
• Bank fraud
• Making false statements
• Money laundering
• Aggravated identity theft

Penalties can be severe depending on the scale of fraud and the defendant’s criminal history. Federal sentencing guidelines can recommend years in prison for major frauds or repeat offenders. Fines can also be imposed in the millions.

Fighting Fraud Charges and Building a Defense

When defending PPP or EIDL fraud charges, experienced Louisiana lawyers will carefully scrutinize the prosecution’s evidence and legal theories to identify weaknesses in the government’s case. Some potential defenses include:

• No intent to defraud – The defense may argue the defendant acted in good faith without intent to deceive the lender or government.
• Truthful application – Asserting the loan application was accurate and no false statements were made.
• Loan funds properly used – If proceeds were ultimately spent on legitimate business expenses, this undercuts charges of misusing funds.
• Minimal loss – Arguing the government suffered little to no financial loss, which can weaken the case.
• Blaming others – With multiple defendants, each may try to shift blame onto the other participants.
• Duress or coercion – Claiming the defendant was forced or coerced into the scheme by others.

An experienced federal criminal defense lawyer will know how to strategically fight the charges at every stage of the case for the best possible outcome.

Tips for Finding the Right PPP/EIDL Fraud Lawyer

Choosing the right lawyer is crucial to successfully fighting federal fraud accusations. Here are some tips on what to look for:

• Find someone with extensive experience defending complex white collar and financial crime cases in Louisiana’s federal courts. They’ll understand how things work locally and have connections with judges and prosecutors.
• Make sure they have successfully defended PPP and EIDL fraud cases before. You want someone intimately familiar with the technical details and issues of these cases.
• Ask about their track record getting charges dismissed pre-trial, keeping defendants out of prison, and negotiating favorable plea deals. This demonstrates their ability to strategically fight the government.
• Choose a lawyer with ample resources to handle a complex fraud defense case, which requires thorough investigation and financial analysis.
• Make sure you feel comfortable with their communication style, as you’ll be working closely under stressful circumstances.
• Vet their background, qualifications, experience, and client reviews rather than choosing just any lawyer. Finding the right fit makes a huge difference.

What To Do if You Are Under Investigation

If you received a subpoena from federal agents or have reason to believe you are under investigation for PPP or EIDL fraud, remain calm and focus on taking the right steps:

• Don’t panic – With an experienced lawyer’s help, you can get through this.
• Don’t talk to investigators without counsel – Anything you say can be used against you.
• Hire a lawyer immediately – They can guide interactions with investigators and negotiate with prosecutors.
• Follow your lawyer’s advice – They know how to protect your rights and build the strongest defense.
• Be patient – These cases take time and thorough preparation to resolve favorably. Trust your legal team.

Conclusion

PPP and EIDL fraud charges are serious but can be fought with an experienced legal defense. If you are being investigated or prosecuted in Louisiana, it’s critical to act fast to protect yourself. Do your research to find the right lawyer for your case. A skilled federal defense attorney can make all the difference in achieving the best possible outcome.