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How to Handle a Federal Criminal Investigation into PPP Fraud
Contents
What is PPP Fraud?
The Paycheck Protection Program (PPP) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to small businesses affected by the COVID-19 pandemic. PPP fraud occurs when individuals or businesses obtain PPP loans through false statements or misrepresentations. Examples of PPP fraud include:
- Falsifying payroll information to obtain a larger loan amount
- Using PPP funds for unauthorized purposes
- Submitting false documentation to support a PPP loan application
What to Do if You Are Being Investigated for PPP Fraud
If you or your business is being investigated for PPP fraud, it is important to take the following steps:
- Seek Legal Counsel: Contact an experienced criminal defense attorney who has experience handling federal criminal investigations. Your attorney can advise you on your legal rights and help you navigate the investigation process.
- Cooperate with the Investigation: It is important to cooperate with the investigation and provide truthful information to the investigators. However, you should not provide any information without first consulting with your attorney.
- Preserve Documents: Preserve all documents related to your PPP loan application and use of PPP funds. Your attorney can advise you on which documents to preserve and how to organize them.
- Do Not Destroy Evidence: Do not destroy any documents or electronic data that may be relevant to the investigation. Destroying evidence can result in additional criminal charges.
- Do Not Speak to the Media: Do not speak to the media about the investigation. Your attorney can advise you on how to handle media inquiries.
Penalties for PPP Fraud
PPP fraud is a federal crime that can result in severe penalties, including fines and imprisonment. The penalties for PPP fraud depend on the specific circumstances of the case, including the amount of the loan and the nature of the fraud. In general, the penalties for PPP fraud can include:
- Imprisonment: Up to 30 years in federal prison
- Fines: Up to $1 million or more
- Restitution: Repayment of the PPP loan amount plus interest
- Forfeiture: Seizure of assets obtained through PPP fraud
Conclusion
If you or your business is being investigated for PPP fraud, it is important to take the situation seriously and seek legal counsel immediately. PPP fraud is a federal crime that can result in severe penalties, including fines and imprisonment. By following the steps outlined in this article and working with an experienced criminal defense attorney, you can protect your legal rights and navigate the investigation process.