12 Sep 23

Corpus Christi PPP – SBA – EIDL Loan Fraud Lawyers

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Last Updated on: 2nd October 2023, 03:03 pm

Corpus Christi PPP – EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program were created by the federal government to provide financial assistance to small businesses struggling during the COVID-19 pandemic. While these programs offered a lifeline to many legitimate businesses, some people took advantage of the emergency funds by committing fraud. In Corpus Christi and across Texas, authorities are cracking down on PPP and EIDL fraud cases. If you are being investigated or charged for allegedly fraudulent loans, it is critical to have an experienced defense lawyer on your side.

The PPP offered forgivable loans to help cover payroll and other expenses during pandemic shutdowns. To qualify, applicants had to certify that the funds were necessary to support ongoing operations. The EIDL program provided low-interest loans for working capital and normal operating expenses. Both programs relied heavily on self-certification from applicants with minimal upfront verification.

With billions of dollars flowing rapidly into these emergency programs, opportunists submitted fraudulent loan applications, falsified payroll and tax documents, spent funds improperly, and misrepresented business information. Common PPP and EIDL fraud schemes include:

  • Applying for multiple loans for non-existent businesses
  • Inflating payroll numbers to receive larger loan amounts
  • Using business names without permission or claiming fake employees
  • Spending funds on unauthorized personal purchases
  • Lying about having an active business to qualify
  • Falsifying tax and employment records

Many of these fraudulent loans added up to hundreds of thousands or even millions of dollars in stolen funds. With so much money flowing out rapidly, oversight was initially lacking. But federal and state investigators are now scouring loan applications for fraud. In Corpus Christi, the U.S. Attorney’s Office for the Southern District of Texas is filing charges against PPP and EIDL scammers. Defendants are facing serious consequences like multi-year prison sentences and orders to repay all funds.

Federal Charges for PPP and EIDL Fraud

Prosecutors have an arsenal of federal charges they can bring against PPP and EIDL fraudsters in Corpus Christi, including:

  • Wire fraud – Using interstate wires to execute a scheme to defraud
  • Bank fraud – Intent to defraud a bank or financial institution
  • Money laundering – Engaging in financial transactions with criminal proceeds
  • Aggravated identity theft – Misusing someone’s personal information
  • False statements – Lying on loan applications and documents

These white-collar federal charges often carry stiff penalties. Wire fraud and bank fraud are punishable by up to 30 years in prison. Money laundering can result in up to 20 years behind bars. Aggravated identity theft carries a mandatory minimum 2-year sentence. Defendants also face massive fines and restitution orders.

Defenses Against PPP and EIDL Fraud Charges

If you are charged with PPP, EIDL or other federal fraud crimes in Corpus Christi, having an experienced defense lawyer in your corner can make all the difference. A skilled attorney will thoroughly examine the prosecution’s evidence and identify any weaknesses in their case. Some possible defenses include:

  • You acted in good faith without intent to defraud
  • Errors or mistakes were made, but you did not intentionally lie
  • You misunderstood the program rules and requirements
  • The business and financial records are accurate and legitimate
  • You were entitled to the full loan amount received
  • The funds were used for permitted purposes

An attorney can also negotiate with prosecutors for reduced charges or pretrial diversion programs that could result in dismissed charges. If necessary, they can take your case to trial and argue to a jury that the government has not met its burden of proof beyond a reasonable doubt. The law contains intricacies that a skilled lawyer can exploit to build a strong defense.

Choose an Experienced Federal Fraud Lawyer

Allegations of PPP, EIDL or other federal loan fraud can utterly devastate a business or career. These complex cases require an attorney with specialized knowledge of financial crimes and experience defending similar charges in Corpus Christi federal court. Look for a lawyer who has achieved successful case results for clients facing fraud allegations. An experienced federal defense lawyer will thoroughly investigate the facts, identify weaknesses in the prosecution’s case, raise evidentiary challenges, and build a compelling defense on your behalf.

Facing federal fraud charges is daunting, but you have rights and options. An experienced defense lawyer can protect your interests, freedom and reputation. Contact a skilled Corpus Christi attorney today for a strong defense against PPP, EIDL or other federal fraud allegations.