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]:

• 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