12 Sep 23

Oakland PPP – SBA – EIDL Loan Fraud Lawyers

| by

Last Updated on: 14th September 2023, 01:05 am

Oakland PPP – EIDL Loan Fraud Defense Lawyers

The COVID-19 pandemic brought immense hardship for many small businesses in Oakland and across the country. To provide relief, the federal government offered financial assistance through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. While these programs were a lifeline for struggling companies, some business owners are now facing allegations of fraud related to obtaining these loans. If you are being investigated or charged for potential PPP or EIDL fraud in Oakland, it is critical to have an experienced defense lawyer on your side.

Overview of PPP and EIDL Programs

The PPP and EIDL programs were created in 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses impacted by the pandemic. The PPP offered potentially forgivable loans to help companies retain employees and cover expenses like payroll, rent, and utilities. EIDL provided low-interest loans for working capital and normal operating costs. With billions of dollars being rapidly distributed through these new programs, fraud was unfortunately inevitable.The Department of Justice is aggressively pursuing PPP and EIDL fraud cases across the country. In Oakland and the Northern California District alone, federal prosecutors have charged multiple defendants with millions of dollars in alleged pandemic relief fraud. The penalties can be severe, including multi-year prison sentences and orders to repay all funds obtained. For business owners facing accusations, the stakes are incredibly high.

Common Allegations in PPP and EIDL Fraud Cases

There are a variety of ways prosecutors can allege fraud relating to PPP loans, EIDL loans, or both. Some common allegations include:

  • Submitting false or misleading information on loan applications regarding number of employees, payroll expenses, cost of goods sold, or other figures used to calculate loan amounts.
  • Using PPP funds for unauthorized purposes instead of allowable expenditures like payroll, rent, utilities, etc.
  • Failing to accurately report revenue and expenses when applying for loan forgiveness.
  • Applying for and receiving multiple PPP and/or EIDL loans for the same business expenses.
  • Applying for loans under multiple business names or on behalf of defunct, non-operational, or sham businesses.
  • Colluding with lenders, brokers, or insiders to obtain loans the business was not qualified to receive.

The government does not need to prove intent to defraud. Even accidental misstatements or misunderstandings of program rules can lead to criminal charges.

Viable Defenses Against PPP and EIDL Fraud Allegations

Given the complexity of the PPP and EIDL programs and speed with which loans were distributed, there are often viable defenses in fraud cases. A knowledgeable attorney can evaluate if any of these may apply:

  • Lack of intent – There is no evidence you deliberately tried to mislead lenders or misuse funds. Innocent mistakes happen.
  • Ambiguous program rules – PPP and EIDL policies were unclear or changed frequently. You may have misunderstood how to calculate figures or use funds appropriately.
  • Lender errors – The lender made mistakes in processing your application or failed to provide clear guidance.
  • Loan forgiveness – If the loan has been forgiven, that may undermine allegations you misused the funds.
  • Return of funds – If funds were returned upon realizing a mistake, it shows lack of criminal intent.
  • Statute of limitations – There is a 5-year limit on federal fraud charges. A skilled lawyer can argue the clock started earlier than prosecutors claim.
  • Jurisdictional issues – Federal courts may lack jurisdiction if alleged misstatements were not sufficiently material.
  • Selective prosecution – You may have been unfairly targeted for investigation compared to other loan recipients.

An experienced federal fraud defense attorney can analyze the facts of your case to determine the strongest defenses. Viable defenses combined with effective negotiation by your lawyer can potentially lead to reduced charges or even avoidance of criminal prosecution altogether.

Why Hiring a Lawyer is Crucial

Attempting to navigate PPP or EIDL fraud accusations without an attorney is extremely unwise. These are complex cases with harsh potential penalties. A knowledgeable federal defense lawyer has the skills and experience to protect your rights:

  • They understand the intricate PPP and EIDL program rules and typical fraud allegations.
  • They can convince prosecutors weaknesses in evidence or viable defenses should prevent charges from being filed.
  • If charged, they can employ hard-hitting defense strategies challenging the government’s ability to prove intent, materiality, loss amounts, and other elements.
  • They can argue for dismissal of charges or acquittal at trial based on reasonable doubt.
  • They can negotiate with prosecutors for reduced charges or sentencing leniency.
  • They know how to avoid self-incrimination and other pitfalls when dealing with investigators.

Hiring an attorney early when you learn you are under investigation is ideal. Involving counsel immediately can sometimes resolve matters quickly before charges are even filed.

Selecting the Right Fraud Defense Attorney

Choosing the right lawyer is crucial when facing federal fraud accusations that could result in prison time, heavy fines, and other serious consequences. Key credentials to seek in a PPP/EIDL fraud defense lawyer include:

  • Federal court experience – Handling numerous federal fraud cases and familiarity with federal prosecutors and judges.
  • Record of success – A proven track record of positive outcomes in fraud and financial crime cases.
  • Knowledge of relief programs – In-depth understanding of PPP, EIDL, and other pandemic relief programs.
  • Trial skills – Ability to mount an aggressive defense in court if charges are not dismissed pre-trial.
  • Negotiation skills – Able to negotiate effectively with prosecutors to reduce charges and penalties.
  • Reputation for integrity – Respected by prosecutors and judges for honesty, ethics and vigorous defense of clients.

When your business, livelihood, freedom, and reputation are on the line, you need an accomplished federal defense lawyer in your corner. Do not leave the fate of your case to chance. Consult with a top-rated PPP/EIDL fraud defense attorney as soon as possible. With an experienced legal advocate on your side, you can rest assured knowing your rights are protected and your best interests are secured.