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Boston PPP and EIDL Loan Fraud Lawyers
(0) Comment |Shield Your Business from Devastating Accusations of PPP Loan Fraud
In the face of the unprecedented COVID-19 pandemic, the US federal government took decisive action by enacting the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A key component of this empowering legislation is the Paycheck Protection Program (PPP), specifically aimed at providing much-needed financial support to small and medium-sized businesses grappling with the economic fallout of the pandemic. However, with a staggering demand for funds, the initial allocation of $350 billion was rapidly exhausted, leaving countless deserving businesses out in the cold.
In light of concerns surrounding potential fraudulent activity within the PPP, various government institutions are now diligently working to identify, expose, and prosecute those businesses unlawfully benefiting from this vital program. The consequences of being found guilty of PPP loan fraud are severe and far-reaching – with companies facing heightened federal scrutiny, crushing fines, and even prosecution.
As the stakes are incredibly high, it is imperative to secure the services of a skilled and experienced law firm to help navigate the treacherous waters of federal investigation, ensuring minimal penalties for your business.
Understanding the Different Allegations of PPP Loan Fraud
Due to the increased scrutiny and bureaucratic procedures surrounding PPP loans, businesses need to be acutely aware of the various types of allegations related to PPP loan fraud:
| Type of Fraud | Description |
|---|---|
| Loan Stacking | When businesses underhandedly apply for or receive PPP funds from multiple sources, they face the unwavering focus and scrutiny of the Office of the Comptroller making loan stacking a significant area of potential fraud. |
| PPP Loan Application Fraud | Should a business misrepresent itself on PPP loan application forms or otherwise manipulate the system by violating eligibility criteria (e.g., falsifying payroll information, falsely classifying workers as independent contractors), they will undoubtedly attract heightened scrutiny. |
| Using PPP Funds for Ineligible Business Purposes | Given the highly targeted nature of PPP funds, their usage is strictly limited to four designated purposes (payroll costs, mortgage interest payments, rent payments, and utilities). Misusing PPP funds for any other unauthorized purpose is a surefire way to find oneself facing allegations of fraud. |
| Fraudulent Loan Certification | Businesses must provide accurate and truthful certifications when applying for PPP loans. Any attempts to submit false or misleading certifications such as claiming the loan is necessary for ongoing operations or certifying that funds will be used appropriately will be exposed and penalized. |
| Fraudulent Loan Forgiveness Certification | For businesses seeking to have their PPP loans forgiven, stringent proof is required to demonstrate that the funds were indeed used for authorized expenses. Any attempts to falsify or manipulate this information will result in serious consequences. |
| Misrepresenting or Concealing Information During a PPP Audit or Investigation | During the course of a PPP audit or investigation, companies must provide complete and accurate information to federal law enforcement agents. Any attempt to deceive or withhold critical information will be met with severe penalties, including potential prosecution for making false statements. |
Act Swiftly to Defend Your Company Against PPP Fraud Allegations
If your business finds itself in the unenviable position of being targeted in an investigation concerning PPP fraud, it is vital to act decisively and secure the services of a seasoned federal defense counsel immediately. At Oberheiden P.C., our experienced legal professionals possess a wealth of knowledge and skills in defending clients against allegations related to the ever-evolving COVID-19 pandemic. Do not hesitate to contact us for robust and unwavering support in the face of PPP fraud allegations or potential allegations.