Criminal Defense Lawyers

Indiana PPP – SBA – EIDL Loan Fraud Lawyers

Navigating PPP and EIDL Fraud Allegations in Indiana

When COVID-19 hit, the government rolled out big relief programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program to help small businesses stay afloat. But with billions of dollars flowing fast, some folks saw a chance to take advantage. Now prosecutors are cracking down on fraud cases across the country, including right here in Indiana.If you’re accused of PPP or EIDL fraud, having an experienced legal team can make all the difference. The lawyers at Arnold & Porter in Indianapolis understand how these programs work and the strategies prosecutors use. They can spot weaknesses in the government’s case and build the strongest defense.

What Are Folks Being Charged With?

Prosecutors are aggressively going after PPP and EIDL fraud nationwide. As of June 2022, the Department of Justice reported over 500 people had been charged in federal court for pandemic program fraud totaling over $750 million. They’ve gone after individuals, groups, and crime rings trying to exploit the relief money.Some common allegations include:

• Lying on PPP or EIDL applications
• Using PPP funds for unauthorized expenses
• Applying for multiple PPP loans for one business
• Applying for PPP loans for fake businesses
• Applying for more than one EIDL loan
• Giving false info about employees, revenue, costs to get bigger loans

PPP loans were supposed to go toward payroll, rent, utilities – that kind of thing. EIDL loans were for working capital and operating costs. Prosecutors dig into bank records looking for improper spending.

Building a Strong Defense

A good federal defense lawyer can poke holes in the government’s case. Here are some strategies they might use:

• Attack flawed applications – Many had inadvertent mistakes or confusing questions. The defense can argue it wasn’t on purpose.
• Show lack of intent – Prosecutors have to prove you knowingly lied. The defense will say you acted in good faith.
• Challenge improper spending – Hard to separate PPP money from other revenue. Dispute whether expenses were really unauthorized.
• Question multiple charges – Each application must be false to stick. Argue some applications were valid.

In one Indiana case, a judge dismissed charges against a Valparaiso businessman accused of PPP fraud, saying prosecutors didn’t prove intent. A good lawyer can make similar arguments to undermine the prosecution.

What About Sentencing?

If convicted of PPP or EIDL fraud, the defense will try to reduce the sentence. Federal fraud sentences follow the U.S. Sentencing Guidelines, which consider things like:

• Amount of loss
• Sophistication of the fraud
• Defendant’s criminal history
• Leadership role?
• Accepting responsibility?

The amount of loss drives the guideline range. The defense will scrutinize the prosecution’s loss number and dispute any unfair enhancements. Other arguments for a lower sentence:

Christine Twomey

2024-03-21

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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

2024-03-18

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2024-03-15

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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!

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2024-03-12

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2024-03-12

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2024-02-28

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2024-02-24

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Google rating score: 4.9 of 5, based on 736 reviews

• Overstated harm – Government ultimately recovered most funds or had minimal loss
• One-time mistake – More lenient if fraud was a one-off, not a pattern
• Family impact – Judges consider effects on spouse and kids
• Charity work – Community service and philanthropy can mean lower sentence
• Health issues – Illnesses and disabilities may justify lower sentence for proper treatment

In December 2022, an Indianapolis woman got just probation for seeking over $500k in fraudulent PPP and EIDL loans. Her lawyer cited health issues and caring for her kids. Understanding these factors is huge for defendants.

Avoiding Civil Liability

In addition to criminal penalties, PPP and EIDL fraud can lead to civil lawsuits under the False Claims Act. This allows whistleblowers to file suits and recover triple damages.To avoid False Claims liability, try to get a deferred prosecution agreement admitting wrongdoing but avoiding conviction. Convictions can be used as evidence of fraud in civil cases later.The lawyers at Phillips & Cohen have extensive experience defending False Claims Act cases. They understand how civil and criminal matters intersect and can help mitigate liability.

How a Lawyer Can Help

Having an experienced fraud defense lawyer makes all the difference. They can identify weaknesses in the prosecution’s case and present persuasive arguments to undermine the charges. For anyone facing PPP or EIDL fraud accusations in Indiana, building the strongest defense possible is critical. The stakes are high, but the right legal team can help navigate this complex process and achieve the best possible outcome.