Criminal Defense Lawyers

Boston PPP – SBA – EIDL Loan Fraud Lawyers

Boston PPP – SBA – EIDL Loan Fraud Lawyers: Your Best Defense Against Federal Prosecution

The COVID-19 pandemic led to unprecedented government stimulus aimed at providing financial relief to struggling businesses and individuals. A key component was the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA). While a lifeline for many, these programs were ripe for abuse and fraud. In Boston and nationwide, federal prosecutors are aggressively pursuing PPP and EIDL fraud cases. Retaining experienced legal counsel can mean the difference between a minor sanction or serious imprisonment.

Overview of PPP and EIDL Fraud

The PPP provided low-interest private loans to small businesses, forgivable if used on eligible expenses like payroll and rent. EIDL provided low-interest disaster loans up to $2 million. With the rush to distribute funds quickly, limited oversight led to widespread fraud. Common schemes include:

• Falsifying employee, revenue, and expense numbers on applications to get larger loans
• Using loans for ineligible expenses like personal purchases instead of business costs
• Applying for multiple loans through different lenders using fake businesses
• Stealing personal information to fraudulently apply for loans in someone else’s name

For example, a Boston used car dealer allegedly falsified documents to obtain $85,000 in PPP loans and $15,000 in EIDL grants.

Federal PPP and EIDL Fraud Investigations in Boston

Various federal agencies are investigating PPP and EIDL fraud cases across the country. This includes the Department of Justice (DOJ), FBI, IRS, and SBA’s Office of Inspector General. In Boston, the U.S. Attorney’s Office for the District of Massachusetts has been aggressively prosecuting cases.Red flags that may trigger scrutiny of your application include:

• Seeking loans far above your business’s real payroll expenses
• Getting multiple loans for one business through different lenders
• Spending funds on personal costs unrelated to business operations
• Lying about number of employees, revenues, expenses on application
• Defaulting on the loan instead of spending it on approved uses

Potential Federal Charges for PPP and EIDL Fraud

If investigators uncover intentional misrepresentations or deception, you may face severe federal criminal charges such as:

• Wire fraud – Up to 30 years if scheme involves disaster relief funds
• Bank fraud – Carries up to 30 years imprisonment
• Aggravated identity theft – 2 years mandatory minimum prison sentence
• Money laundering – Up to 20 years imprisonment
• Making false statements – Up to 5 years imprisonment

The government can also impose massive civil fines and forfeit any illegally obtained loan amounts.

Why Legal Representation is Absolutely Critical

Facing criminal prosecution by the federal government is terrifying. Prosecutors have endless resources and will pursue the harshest charges to pressure you into pleading guilty. But an experienced federal defense lawyer can level the playing field. Benefits include:

• Negotiating with prosecutors – We can argue weaknesses in their case and advocate for dismissal or reduced charges. Prosecutors must prove intent, difficult in complex financial cases.
• Explaining the law – These financial fraud laws have nuances easy for laymen to misunderstand. We clarify exactly what conduct each statute prohibits.
• Avoiding mistakes – Talking to federal agents without an attorney often backfires. We advise you on asserting your rights.
• Advancing defenses – We dig into the details to identify potential defenses like lack of intent or being an unknowing participant.
• Obtaining evidence – The government must provide all evidence. We analyze it to build your defense.
• Mitigating sentencing – If convicted, we present proof of your good character and circumstances to minimize or eliminate jail time.

How a Skilled Federal Defense Lawyer Can Help

Facing PPP or EIDL fraud charges is scary. But skilled legal counsel can prevent panic and build your strongest case. Do not delay in seeking representation if contacted by investigators or charged with COVID relief fraud. Reach out for a free case assessment today.

Noteworthy Articles and Resources

• PPP Loan Fraud: Charges and Penalties – Overview of potential PPP fraud charges
• 18 USC § 1343 – Wire fraud – Federal wire fraud statute
• 18 USC § 1344 – Bank fraud – Federal bank fraud statute
• 18 USC § 1028A – Aggravated identity theft – Federal aggravated identity theft statute
• 18 USC § 1957 – Money laundering – Federal money laundering statute
• 18 USC § 1001 – False statements – Federal false statements statute
• District of Massachusetts COVID-19 Fraud Enforcement – DOJ page on Massachusetts COVID fraud efforts
• Report Suspected COVID-19 Fraud – DOJ online form to report COVID-19 fraud