Blog
Dallas PPP – SBA – EIDL Loan Fraud Lawyers
Contents
Dallas PPP – SBA – EIDL Loan Fraud Lawyers
When the COVID pandemic hit, the government created new loan programs like PPP and EIDL to help small businesses stay afloat. But with billions of dollars flowing fast, there was also lots of fraud. Now folks who got these loans are worried the feds might come after them for lying on their applications. If that’s you, don’t panic! You need an experienced lawyer on your side ASAP. Let’s break it down:
What the Feds Look For
The main thing prosecutors hunt for is any fibs or stretches of the truth on your application forms. Stuff like:
- Juicing your payroll or employee numbers to get bigger PPP loans
- Using PPP money for personal splurges instead of business expenses
- Creating fake companies to get multiple EIDL loans
- Fudging financials to make your sales drop look worse so you qualify for EIDL
- Lying about criminal records or charges
Now if it was an honest mistake, that ain’t a crime. But if it seems like you lied on purpose to rip off taxpayers – that’s fraud in the feds’ eyes. And they are on the warpath with hundreds of cases filed already. You could get slammed with massive fines or years behind bars.
Review Your Case and Defenses
If the feds contact you, zip it! Don’t answer any questions until your lawyer is present. The stuff you say, even accidentally, can sink you. First you need your attorney to dig into the evidence and see if you really have a problem.
They’ll check out your paperwork and verify if key info like payroll, employees, and losses are correct. If the forms were confusing or unclear, that’s a good defense against “knowingly lying.” Honest mistakes ain’t fraud.
Your lawyer can also look at how you actually used the money. Spending it on real business costs makes fraud accusations weaker, even if your application had some false info. And for PPP loans, getting forgiveness cleared may help too.
Finally, your attorney can try to make a deal to avoid criminal charges. Options like paying back cash, cooperating with investigations, or implementing compliance fixes may get prosecutors to back off. The SBA has hinted they’re open to these alternatives.
Be Proactive With a Lawyer
Billions in COVID loans went out fast, so the heat on fraud ain’t dying down. But these cases are complicated, not slam dunks like prosecutors pretend. Just ’cause there’s issues on your application doesn’t mean you committed intentional fraud.
If you get contacted by the feds or worry you might be charged, call a white collar defense attorney immediately! They can dig into the evidence, knock down bogus fraud accusations, and fight hard for alternatives to criminal prosecution. That’s your best shot at avoiding devastating penalties.
In Dallas, Patrick McLain has 20+ years successfully defending complex financial fraud cases in federal courts across Texas. His deep experience gives clients skilled guidance and advocacy when facing PPP or EIDL fraud probes. He knows how the feds build these cases and the best defenses. If you’re sweating a potential SBA fraud case, call Patrick for a free review. He can help!
Helpful Links
[1] 5 Steps to Navigate PPP Loan Fraud Case to Avoid Federal Prison – YouTube
[2] DOJ COVID-19 Fraud Enforcement – justice.gov
[3] Dallas PPP & EIDL Fraud Defense Attorney Patrick McLain
[4] PPP Borrowers & SBA Fraud – YouTube
[5] COVID Loan Fraud Cases – pogo.org