Maryland PPP – SBA – EIDL Loan Fraud Lawyers

Maryland PPP – SBA – EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program were implemented by the Small Business Administration (SBA) to provide financial relief to businesses impacted by the COVID-19 pandemic. However, some individuals have taken advantage of these programs by committing fraud to obtain loans or misusing loan funds. This article provides an overview of PPP and EIDL fraud in Maryland, defenses and penalties, and how an experienced lawyer can help.

Overview of PPP and EIDL Fraud

The PPP provided forgivable loans to small businesses to cover payroll and other expenses during the pandemic. The EIDL program provided low-interest loans and grants to businesses suffering economic injury from COVID-19.

To obtain these loans quickly, limited vetting of applications occurred initially. This allowed fraudsters to exploit the programs by[1]:

• Submitting applications with false employee, revenue, or expense information
• Applying using stolen or synthetic identities
• Applying for multiple loans through multiple businesses
• Misusing loan funds for unauthorized purposes

According to the Department of Justice (DOJ), as of October 2022, over 600 defendants have been charged with federal crimes related to pandemic fraud totaling over $1.1 billion in losses[2]. This includes numerous cases of PPP and EIDL fraud in Maryland.

For example, in December 2022 a Baltimore man pled guilty to wire fraud for submitting fraudulent PPP and EIDL loan applications seeking over $417,000[5]. In another Maryland case, two individuals were charged with conspiring to obtain $2.8 million in PPP loans using falsified documents and shell companies[6].

Defenses Against PPP and EIDL Fraud Charges

If you are being investigated or charged with PPP or EIDL fraud in Maryland, having an experienced white collar criminal defense lawyer is critical. Potential defenses include[3]:

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

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 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

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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

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

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.

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2024-03-12

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2024-02-28

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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.

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• Lack of intent – The government must prove you knowingly provided false information with intent to defraud. Evidence showing a lack of criminal intent could defeat charges.
• Loan eligibility – You may have a defense if there are arguments the loan applications met program requirements, despite allegations of fraud.
• Return of funds – Repaying loans obtained through misrepresentations may be viewed favorably by prosecutors and at sentencing.
• Blame on third-parties – If others like accountants or bookkeepers submitted inaccurate applications without your knowledge, it weakens the case against you.

An attorney can review the evidence and determine if any of these defenses apply in your case.

Penalties for PPP and EIDL Fraud

PPP and EIDL fraud can lead to both civil and criminal penalties. On the criminal side, potential federal charges include[4]:

• Wire fraud – Up to 20 years imprisonment
• Bank fraud – Up to 30 years imprisonment
• False statements – Up to 5 years imprisonment
• Aggravated identity theft – Mandatory 2 years imprisonment

The DOJ pursues charges even for loan amounts below $2 million[1]. The government may also seek forfeiture of any proceeds derived from the fraud.

In addition to jail time, criminal convictions often involve substantial fines and restitution to the government. Any assets purchased with loan proceeds may be seized and sold.

On the civil side, the government can seek treble damages up to three times the amount of the loans obtained through fraud. You may also face program debarment, preventing participation in other SBA loan programs.

Working with a Lawyer for the Best Outcome

Facing PPP or EIDL fraud allegations can be overwhelming. The government devotes substantial resources to investigating and prosecuting pandemic-related fraud.

Having an experienced federal criminal defense lawyer on your side can help protect your rights and future. A lawyer can[3]:

• Conduct an independent investigation of the allegations
• Assess the strength of the government’s case
• Identify and raise any viable defenses
• Negotiate with prosecutors for dismissal or reduced charges
• Develop an effective defense strategy if charges are filed
• Advocate for the most lenient penalties if convicted

Every case is different. An attorney can evaluate your unique situation and provide skilled guidance tailored to the specific facts and allegations. This gives you the best chance of a favorable outcome, whether that means avoiding charges altogether or minimizing penalties if convicted.

Don’t wait to seek legal help if you are contacted regarding potential PPP or EIDL fraud. The earlier an attorney gets involved, the more tools they have to protect you. A prompt and thorough independent investigation can uncover facts and evidence to contradict the government’s narrative.

Even if charges have already been filed, skilled defense representation can make a major difference in the outcome. An attorney may negotiate pretrial diversions or deferred prosecution agreements that could lead to reduced or dismissed charges. They can also advocate for probation instead of prison if your case goes to sentencing.

Finding an Experienced Maryland PPP and EIDL Fraud Lawyer

If you need legal help related to PPP or EIDL fraud allegations or charges in Maryland, look for a lawyer with specific experience in this area. Key credentials to seek include:

• Extensive knowledge of PPP, EIDL, and SBA loan programs
• Track record defending white collar fraud cases
• Familiarity with federal prosecutors and processes
• Access to forensic accountants and investigators
• History negotiating favorable outcomes for clients

Don’t take chances with your future. The consequences of pandemic loan fraud convictions can be severe. Retaining an experienced attorney provides critical protection and gives you the best opportunity for the most positive resolution.

Conclusion

The COVID-19 pandemic led to unprecedented government lending through programs like PPP and EIDL. While these programs offered a lifeline for struggling businesses, some have abused them through fraud and misuse of funds.

If you are contacted regarding potential PPP or EIDL fraud in Maryland, immediately consult with a federal criminal defense lawyer. An attorney can assess your situation, identify defenses, and guide you through the process to achieve the best possible outcome. The stakes are high, so it is critical to have an experienced lawyer protecting your rights and future.

References

[1] https://www.seddiqlaw.com/ppp-loan-fraud-sba-loan-fraud/

[2] https://www.justice.gov/opa/pr/over-600-defendants-charged-connection-over-11-billion-covid-19-fraud-schemes

[3] https://www.federallawyers.com/criminal-defense/maryland-ppp-sba-eidl-loan-fraud-lawyers/

[4] https://www.silvermanthompson.com/paycheck-protection-program-ppp-fraud-and-prosecutions.html

[5] https://www.justice.gov/usao-md/pr/baltimore-man-pleads-guilty-wire-fraud-submitting-fraudulent-covid-19-cares-act-relief

[6] https://www.justice.gov/usao-md/pr/two-maryland-men-indicted-federal-charges-covid-19-related-loan-fraud-scheme