Criminal Defense Lawyers

Nashville PPP – SBA – EIDL Loan Fraud Lawyers

Nashville PPP – EIDL Loan Fraud Lawyers

The COVID-19 pandemic led to an unprecedented level of federal assistance for small businesses across the country. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program distributed billions of dollars in forgivable loans and grants to help businesses stay afloat during pandemic shutdowns. However, the speed at which these programs were rolled out also created opportunities for fraud and abuse. In Nashville, Tennessee and elsewhere, some business owners took advantage by falsifying information on their applications to receive money they weren’t entitled to. Now, federal prosecutors are cracking down and charging those responsible with federal crimes such as wire fraud, bank fraud, false statements, and money laundering. If you’re being investigated or charged in relation to PPP or EIDL fraud in Nashville, it’s critical to have an experienced federal criminal defense lawyer on your side.

The PPP and EIDL Programs

The PPP loan program was designed to provide small businesses with low-interest, forgivable loans to cover payroll, rent, utilities and other expenses during COVID-19 shutdowns. To qualify, businesses had to certify that the loans were necessary to support ongoing operations given the uncertainty of the pandemic. The EIDL program similarly aimed to provide working capital loans and emergency grants of up to $10,000 to businesses impacted by the pandemic. However, the programs’ loose eligibility requirements, rushed rollout, and lack of oversight made them ripe for abuse.Some of the most common PPP and EIDL fraud schemes in Nashville included:

• Applying for multiple PPP loans through different lenders
• Claiming more employees or higher payroll expenses than the business actually had
• Using PPP funds for unauthorized personal purchases instead of business expenses
• Applying for an EIDL grant and PPP loan for the same purported losses
• Falsifying financial records to qualify for larger loan amounts
• Applying for loans under the name of defunct or shell companies

Fraud Charges and Penalties

These types of fraud can lead to felony charges at both the state and federal level. The Department of Justice has made prosecuting pandemic-related fraud a top priority through its COVID-19 Fraud Enforcement Task Force. In Nashville, several business owners have already been indicted for PPP and EIDL fraud, including:

• The owner of a talent agency accused of obtaining $2.2 million in PPP loans and using the money to buy a new house
• A nurse practitioner charged with wire fraud and money laundering for falsely claiming to have dozens of employees
• The operator of a tax preparation service indicted for bank fraud related to multiple PPP loans totaling over $1 million

Those found guilty of federal loan fraud charges face substantial penalties depending on the amount of money involved. Wire fraud, bank fraud, and money laundering charges each carry maximum sentences of 20-30 years in prison. False statement charges carry up to 5 years imprisonment. Restitution and hefty fines are also common sentences. With so much at stake, having an experienced federal criminal defense lawyer is critical.

Possible Defenses

While PPP and EIDL fraud allegations should always be taken seriously, there may be defenses in certain cases. An attorney can review the evidence and determine if any of the following arguments apply:

• You acted in good faith reliance on a lender’s guidance about how loan funds could be used
• You made a mistake or misunderstanding on the application but did not intentionally mislead
• You used the funds as intended but have trouble documenting expenses
• You qualify for an exception to false statement charges by correcting any misstatements in a timely manner
• The government is overreaching or prosecuting based on unclear or retroactively changed rules

In some cases, it may be possible to avoid criminal charges entirely through voluntary disclosure and repayment of any improperly obtained loan amounts. An attorney can negotiate this option on your behalf if appropriate. They can also seek to minimize any charges brought by making a compelling case to prosecutors about factors such as:

• Lack of criminal history
• Prompt cooperation and acceptance of responsibility
• Steps taken to correct the record and repay funds
• Charitable community involvement and contributions
• Exceptional circumstances or business hardship

If charges cannot be avoided, a skilled federal criminal defense lawyer will thoroughly analyze the prosecution’s case, identify any procedural flaws or evidentiary weaknesses, and hold them to their burden of proof at trial. They may also be able to identify and negotiate for lesser charges that carry less severe penalties.

Choose an Experienced Attorney

Facing federal criminal charges is always daunting. But with an experienced attorney guiding you through the process, it is possible to minimize penalties and avoid jail time in many PPP and EIDL fraud cases. Be sure to consult with a lawyer as soon as you learn you are under investigation – don’t wait until after charges are filed. This maximizes options for avoiding prosecution and the ability to build an effective defense if necessary. The right lawyer will handle your case discreetly while aggressively defending your rights at every stage.At [Law Firm Name], our Nashville federal criminal defense attorneys have a proven track record of achieving favorable outcomes in complex white collar cases like PPP and EIDL fraud. We understand how high the stakes are and will work tirelessly to protect your future. Contact us for a free consultation to discuss your situation and legal options.