Criminal Defense Lawyers

Portland PPP – SBA – EIDL Loan Fraud Lawyers

Portland PPP – SBA – EIDL Loan Fraud Lawyers: Why You Need Legal Representation

The COVID-19 pandemic led to unprecedented government stimulus aimed at providing financial relief to struggling businesses and individuals. A key component of this stimulus was the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA). While these programs provided a lifeline for many, they were also ripe for abuse and fraud. In Portland and nationwide, federal prosecutors are aggressively pursuing PPP and EIDL fraud cases. If you are being investigated or charged, having an experienced lawyer can mean the difference between a slap on the wrist or serious prison time.

Overview of PPP and EIDL Fraud

The PPP provided low-interest private loans to small businesses, which would be forgiven if used on eligible expenses like payroll and rent. EIDL provided low-interest disaster loans up to $2 million. With the rush to get money out quickly, limited oversight led to widespread fraud. Common schemes include:

• Falsifying employee, revenue, and expense numbers on applications to get larger loans
• Using loans for ineligible expenses like personal purchases instead of business costs
• Applying for multiple loans through different lenders using fake businesses
• Stealing personal information to fraudulently apply for loans in someone else’s name

Portland PPP and EIDL Fraud Investigations

Federal agencies including the Department of Justice (DOJ), FBI, IRS, and SBA’s Office of Inspector General are investigating PPP and EIDL fraud nationwide. In Portland specifically, the U.S. Attorney’s Office for the District of Oregon has a COVID-19 Fraud Coordinator reviewing allegations and prosecuting cases.Red flags that may trigger an investigation include:

• Applying for loans far exceeding your business’s real payroll expenses
• Receiving multiple loans for the same business through different lenders
• Spending funds on personal expenses unrelated to business operations
• Lying about number of employees, revenues, expenses on applications
• Defaulting on the loan instead of using funds for approved purposes

Federal Charges for PPP and EIDL Fraud

If investigators uncover evidence of intentional misrepresentations or other fraud, you may face serious federal criminal charges including:

• Wire fraud – Faces up to 20 years if scheme involves disaster relief funds
• Bank fraud – Up to 30 years imprisonment
• Aggravated identity theft – 2 years mandatory minimum prison sentence
• Money laundering – Up to 20 years imprisonment
• Making false statements – Up to 5 years imprisonment

The government can also pursue hefty civil penalties and seek forfeiture of any illegally obtained loan amounts.

Why You Absolutely Need a Lawyer

Facing federal criminal prosecution is terrifying. The government has endless resources and will hit you with the harshest charges possible to get you to plead guilty. An experienced federal defense lawyer levels the playing field. Benefits of legal representation include:

• Negotiating with prosecutors – We can argue weaknesses in their case and push for dismissal or reduced charges. Prosecutors know they must prove intent, which is difficult in complex financial cases.
• Navigating complex laws – These financial fraud laws contain nuances easy for laymen to misunderstand. We clarify exactly what conduct each statute prohibits.
• Avoiding common mistakes – Talking to federal agents without a lawyer often backfires. We advise you on asserting your rights.
• Presenting defenses – We scrutinize your case to spot potential defenses like lack of intent or being an unwitting participant in someone else’s scheme.
• Obtaining evidence – The government must provide all evidence. We analyze it to build your defense.
• Sentencing mitigation – If convicted, we present evidence of your good character and circumstances to argue for minimal or no prison time.

How an Experienced Federal Defense Lawyer Can Help

Facing PPP or EIDL fraud charges can be overwhelming. But with an experienced federal defense lawyer, you can avoid panic and build the strongest case possible. Do not wait to seek representation if you are contacted by investigators or charged for COVID relief fraud. Reach out for a free case review today.

Noteworthy Articles and Resources

• PPP Loan Fraud: Charges and Penalties – Overview of potential PPP fraud charges
• 18 USC § 1343 – Wire fraud – Federal wire fraud statute
• 18 USC § 1344 – Bank fraud – Federal bank fraud statute
• 18 USC § 1028A – Aggravated identity theft – Federal aggravated identity theft statute
• 18 USC § 1957 – Money laundering – Federal money laundering statute
• 18 USC § 1001 – False statements – Federal false statements statute
• CARES Act Fraud Coordinator – District of Oregon – DOJ press release naming COVID fraud coordinator
• Report Suspected COVID-19 Fraud – DOJ online form to report COVID-19 fraud