12 Sep 23

Cleveland PPP – SBA – EIDL Loan Fraud Lawyers

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Last Updated on: 13th September 2023, 12:28 am

Fighting Back Against PPP and EIDL Fraud Charges in Cleveland

When COVID first hit, the government created new loan programs like PPP and EIDL to help small businesses survive. These were a real lifeline for a lot of companies. But now, folks are getting accused of fraud and abuse with these loans. If this happened to your business in Cleveland or anywhere in Ohio, it can feel scary and overwhelming. But experienced attorneys can help you build a strong defense.

What Are They Saying You Did?

Prosecutors usually claim you lied on your loan application. Stuff like:

  • Saying you had more employees than you really did
  • Exaggerating your payroll numbers
  • Not mentioning felony convictions
  • Using the money for non-allowed things

You might face charges like wire fraud, bank fraud, false statements, or identity theft. These can mean years behind bars, massive fines, having to pay back money, and losing assets.

Did You Really Mean to Defraud Them?

To prove fraud, prosecutors have to show you meant to deceive the lenders. This gives your lawyers ways to fight back. Maybe your company made a mistake on the paperwork. Or you didn’t understand the complicated rules. Even if you made false claims, proving you wanted to commit fraud is tough. Good attorneys dig into the details to show lack of intent.

Were You Really “Ineligible”?

Another strategy is saying you qualified for the loans after all. Prosecutors say you didn’t meet the requirements for PPP or EIDL. But the rules changed all the time and were confusing. Your lawyers can argue the government is using standards that weren’t in place when you first applied.

Were the Questions Clear?

In some cases, the application questions were vague. You may have read things differently than how the prosecutors claim you should have. This weakens their argument that you intentionally gave false info.

Did You Really Need the Money?

PPP loans are forgiven if you use them correctly. Your lawyers can say you truly needed the cash to make payroll and pay the bills. Even if your application had problems, you took the loans in good faith. This shows that while technical issues occurred, you didn’t mean to break the law.

How Exactly Did You Use the Money?

If accused of misusing funds, your attorneys gather paperwork showing you used them for allowed purposes. Detailed records contradict the government’s story.

Working Cooperatively with Prosecutors

In some situations, it pays to work with the authorities. Things like implementing compliance programs, returning disputed amounts, or providing helpful info about others involved. This shows you’ve taken responsibility and tried resolving things.

Don’t Make These Mistakes

When dealing with accusations, you want to avoid:

  • Talking to investigators without your lawyer
  • Failing to preserve electronic and paper records
  • Making public statements admitting anything wrong
  • Obstructing audits or the investigation

Experienced attorneys make sure you respond properly to subpoenas and build the strongest possible defense.

Find the Right Lawyer for the Job

Because PPP and EIDL programs are so complex, get a lawyer with specific experience in these cases. Look for someone who:

  • Knows the lending rules inside and out
  • Has relationships with prosecutors and regulators
  • Has gotten charges dismissed or reduced before
  • Can bring in financial experts and investigators
  • Is skilled at finding weaknesses in the government’s case

The right Cleveland law firm has helped executives, companies, and individuals successfully fight back. They’ll build a defense tailored to your unique situation.

Be Proactive

Once an investigation starts, prosecutors usually come out swinging. Get experienced counsel working on your side early on. They can interact with authorities for you, present defenses, and hopefully avoid criminal charges altogether.

If you do get charged, skilled lawyers will exploit every avenue to get counts dismissed or penalties reduced. This requires legal arguments customized to the specifics of your case. While the allegations are serious, with the right defense strategy you can fight back.

Hope this gives you a better idea of how to respond if faced with accusations of PPP or EIDL fraud. Don’t go it alone – get specialized legal counsel on your side right away.