Criminal Defense Lawyers

New York PPP – SBA – EIDL Loan Fraud Lawyers

New York PPP – SBA – EIDL Loan Fraud Lawyers

Hey there! I wanted to have a chat with you about PPP and EIDL loan fraud issues that folks are dealing with in New York. I know it’s a tricky situation, and the laws can be confusing, so I thought I’d break it all down for you in a simple way.

What is PPP and EIDL Loan Fraud?

First off, PPP stands for the Paycheck Protection Program. This was a loan program started up by the government during COVID to help small businesses keep paying their employees and cover other expenses. EIDL is the Economic Injury Disaster Loan program, also from the Small Business Administration (SBA).Now, here’s where things get messy. When the government is handing out billions in emergency loans, there’s always gonna be some shady characters who try to take advantage and commit fraud.Some common types of PPP and EIDL fraud include:

• Lying on your loan application about number of employees, payroll costs, or other info to get a bigger loan amount approved.
• Using PPP funds for non-approved purposes – like paying yourself instead of employees or covering personal expenses. These loans were meant for payroll, rent, utilities, etc.
• Applying for multiple PPP loans through different banks by using different business names or EINs. Double-dipping like this was illegal.
• Falsifying records to make it look like the money was spent correctly when it wasn’t.
• Outright identity theft – applying for loans using someone else’s business name, EIN, bank accounts, etc.

So in a nutshell, PPP and EIDL fraud involves lying, cheating, and stealing these emergency funds. And there are some serious penalties if you get caught engaging in this type of fraud.

What are the Potential Charges and Penalties?

There’s a range of federal charges that could come into play if you’re accused of PPP or EIDL fraud in New York:

• Wire fraud – this applies when you use electronic communications like bank wires or the internet to carry out the fraud scheme. It’s a felony charge that can lead to 20 years in prison.
• Bank fraud – covers fraud relating to any federally insured financial institution. Also a felony with up to 30 years behind bars as a possible sentence.
• False statements – if you made materially false statements on your loan application or any other documents. Can lead to up to 5 years imprisonment.
• Aggravated identity theft – for fraudulently using someone else’s identity. Requires a mandatory 2 year minimum prison sentence if convicted.
• Money laundering – for those who tried to conceal the source of their ill-gotten PPP funds or make the money appear legitimate. Can carry a 20 year max sentence.

In addition to potential prison time, there are also massive financial penalties on the table:

• Fines up to $1 million for individuals or $10 million for businesses
• Having to repay the full loan amounts
• Civil lawsuits from the government to recover additional damages

So we’re talking serious criminal liability and life-altering consequences here. Not something you want to mess around with.

What Should You Do if You’re Being Investigated?

First of all, don’t panic. Just because you’re being audited or asked questions doesn’t necessarily mean you’re guilty.That being said, you need to be smart and proactive in protecting yourself. Here are some tips:

• Don’t try to hide anything. Honesty is always the best policy when dealing with the feds. Don’t destroy or falsify any documents.
• Get legal counsel ASAP. An experienced white collar criminal defense attorney can negotiate with investigators on your behalf. Plead the 5th until you have proper representation.
• Remain silent during questioning. Don’t answer questions or sign any affidavits before talking to a lawyer first. What you say can absolutely be used against you.
• Begin gathering exonerating evidence. Bank records, tax returns, payroll info, receipts, emails, etc. Anything showing the loan funds were used properly.
• Explore settlement options if you did commit fraud. In some cases, cooperating early and accepting responsibility can lead to reduced charges. But you need an attorney’s help navigating this.

The key is staying calm and being smart about engaging with investigators. Don’t go it alone here – the experience of a top notch federal defense lawyer is crucial.

How Can a Lawyer Defend Against PPP and EIDL Fraud Charges?

Alright, let’s say you’ve been actually charged with one of these federal crimes related to PPP or EIDL fraud. What can an attorney do to defend you?There are a number of effective defense strategies they may pursue:

• Argue you acted in good faith – if errors or misstatements were honest mistakes, not intentional fraud.
• Challenge how the funds were actually used – demonstrate through documentation that the money went to approved uses like payroll.
• Question the accuracy of records – were bank statements or tax docs even correct? Were faulty records to blame?
• Claim you were entrapped – argue that the government induced or encouraged you to commit fraud.
• File motions to suppress evidence – if evidence was obtained illegally or in violation of your rights.
• Allege a lack of criminal intent – prosecutors must prove you knowingly and willfully committed fraud.
• Negotiate a favorable plea deal – defense lawyers are experts at leveraging circumstances for reduced charges or sentences.
• Take the case to trial – put the prosecution to their burden of proof beyond a reasonable doubt. Their case may have holes or fall apart.

A skilled federal fraud defense attorney knows how to analyze the specifics of your case and build the strongest defense strategy possible. Don’t leave the fate of your business, finances, freedom, and reputation in the hands of anyone less than the very best.

How Can Lawyers Help Achieve the Best Outcome?

The bottom line is that an experienced PPP fraud lawyer gives you the best chance of avoiding the most catastrophic outcomes here – like years behind bars or financial ruin for your business.With their expertise, they can help in a number of ways:

• Negotiating with prosecutors for reduced charges or plea bargains
• Gathering exculpatory evidence and documents you may not even know about
• Poking holes in the prosecution’s legal theories and arguments
• Ensuring your constitutional rights are protected throughout the process
• Guiding you through the complexities of federal sentencing guidelines
• Crafting sentencing memos and letters to minimize guilt