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Corporate Audits for PPP Loan Fraud Lawyers

March 21, 2024 Uncategorized

Corporate Audits for PPP Loan Fraud

Corporate recipients of the Paycheck Protection Program, or PPP loan, often get audited at the time when the company files a loan forgiveness application. The rapid deployment of the PPP loan money opened up the program to applicants that were not the intended beneficiaries. Instead of assuming that the business owner was acting in good faith, many prosecutors took the stance that fraud was being deliberately committed. Any effective defense strategy will challenge this basic assumption as false.

Fraud and PPP Loan Forgiveness

The Department of Justice is also pursuing cases of PPP loan fraud aggressively. Companies seeking to avoid this conflict can take proactive measures to ensure that they remain compliant with the rules governing these loans and the forgiveness programs. Fraud is defined by the participation of the population intended to be excluded from the program. This was never written as a universal benefit even though the pandemic undeniably had a universal impact. Enforcement mechanisms are funded to prevent businesses who took PPP loans from qualifying. This is still a contested area of the law because of the vague nature of the program, its uneven distribution and mishandled administration. The pandemic brought uncertainty and hardship to many businesses of all sizes; it’s an act of bad faith to simply assume the worst in every case.

Corporate Audits Reduce Risk of Prosecution

There are several ways to minimize and reduce the risk of prosecution under this onerous enforcement regime. The first method is to challenge the legal principle in court. This may require adopting a strategic defense posture that is supported by popular opinion. For example, it is widely understood that the resources that went to enforcing the exclusionary aspects of the PPP loan were given to these enforcement activities instead; they may or may not uncover actual cases of fraud. The conversion of the loan program into a universal benefit would instantly neutralize the fraud issue in its entirety, for example.

Fraud Checks and Legal Representation

There are many reasons to consult with a qualified PPP loan fraud attorney. Legal services can assist in the process of clearing the record and proving that the company behaved in good faith. This should be the default assumption, yet this position must often be asserted. Our clients make better decisions when the information available is accurate and useful. This service is part of our complete package. We help businesses facing allegations of PPP loan fraud to mitigate the effects of the charges or overcome them altogether.

Corporate audits function as a form of transparency

This allows external entities with a stake in the company to review the internal operations and come to a conclusion about the issue of fraud. The investigation will seek to determine if the company is compliant with the policies regarding the PPP loans. Audits allow company executives to mount a credible defense against any allegations or investigations of fraud.

Legal Defense Strategies

Any company receiving PPP loans may potentially face this risk. There are numerous cases where the DOJ and U.S. Treasury Department have decided that fraud was committed under this excessively restrictive loan program. Company leaders facing investigation must decide whether the premise of the law can be viably challenged, proving that the loans were used within the intent of the law.

Christine Twomey
Christine Twomey
2024-03-21
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
2024-03-12
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
2024-03-12
Very professional, very transparent, over all a great experience
Bee L
Bee L
2024-02-28
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Understanding Paycheck Protection Program (PPP) Loans

Corporate recipients of the Paycheck Protection Program, or PPP loan, often get audited at the time when the company files a loan forgiveness application. The rapid deployment of the PPP loan money opened up the program to applicants that were not the intended beneficiaries. Instead of assuming that the business owner was acting in good faith, many prosecutors took the stance that fraud was being deliberately committed. Any effective defense strategy will challenge this basic assumption as false.

Fraud and PPP Loan Forgiveness

The Department of Justice is also pursuing cases of PPP loan fraud aggressively. Companies seeking to avoid this conflict can take proactive measures to ensure that they remain compliant with the rules governing these loans and the forgiveness programs. Fraud is defined by the participation of the population intended to be excluded from the program. This was never written as a universal benefit even though the pandemic undeniably had a universal impact. Enforcement mechanisms are funded to prevent businesses who took PPP loans from qualifying. This is still a contested area of the law because of the vague nature of the program, its uneven distribution, and mishandled administration. The pandemic brought uncertainty and hardship to many businesses of all sizes; it’s an act of bad faith to simply assume the worst in every case.

Corporate Audits Reduce Risk of Prosecution

There are several ways to minimize and reduce the risk of prosecution under this onerous enforcement regime. The first method is to challenge the legal principle in court. This may require adopting a strategic defense posture that is supported by popular opinion. For example, it is widely understood that the resources that went to enforcing the exclusionary aspects of the PPP loan were given to these enforcement activities instead; they may or may not uncover actual cases of fraud. The conversion of the loan program into a universal benefit would instantly neutralize the fraud issue in its entirety, for example.

Since the universal benefit angle was inadequately pursued, the enforcement of the loan’s strict rules took higher priority, above salvaging the economy as a whole. Corporate audits can effectively reduce the risk of prosecution from the DOJ or SBA. Company owners and directors might have found it easy to accept the loan money, and it can come as a shock to see the aggressiveness of the federal agencies when pursuing prosecution. The terms of this agreement enabled certain loans to be forgiven if they were properly spent. The terms weren’t excessively onerous, but they were specific.

Defending Against PPP Fraud Allegations

Allegations of fraud can be challenged by asserting the lack of clarity in the original rollout of the loan program. This legal strategy is a matter of shifting the onus from the business onto the administration. There are responsibilities that must be followed at the federal level in order to have the legal position to assert that fraud exists. However, with the sudden rollout of the CARES Act, there was a high level of confusion that should come into account before making a credible allegation of fraud. Problems with the loan programs began early during the pandemic, and no responsible defense lawyer should allow that fundamental point to remain unchallenged.

Fraud Checks and Legal Representation

There are many reasons to consult with a qualified PPP loan fraud attorney. Legal services can assist in the process of clearing the record and proving that the company behaved in good faith. This should be the default assumption, yet this position must often be asserted. Our clients make better decisions when the information available is accurate and useful. This service is part of our complete package. We help businesses facing allegations of PPP loan fraud to mitigate the effects of the charges or overcome them altogether.

Corporate audits function as a form of transparency. This allows external entities with a stake in the company to review the internal operations and come to a conclusion about the issue of fraud. The investigation will seek to determine if the company is compliant with the policies regarding the PPP loans. Audits allow company executives to mount a credible defense against any allegations or investigations of fraud.

Legal Defense Strategies

Any company receiving PPP loans may potentially face this risk. There are numerous cases where the DOJ and U.S. Treasury Department have decided that fraud was committed under this excessively restrictive loan program. Company leaders facing investigation must decide whether the premise of the law can be viably challenged, proving that the loans were used within the intent of the law.

Corporate audits can be done in tandem with other legal strategies as well. Since the legal process depends on a clear understanding of the rules of governance, mismanagement of the loan distribution can also be called into question in the line of defense. Consult with an experienced PPP loan defense attorney before pursuing any particular legal strategy.

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CLAIRE BANKS

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RAJESH BARUA

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