Sacramento PPP – SBA – EIDL Loan Fraud Lawyers

Sacramento PPP – SBA – EIDL Loan Fraud Lawyers

When COVID-19 hit, the government tried to help small businesses and workers by handing out tons of loans and grants through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. It was a real lifeline for many companies and employees who were struggling. But doling out hundreds of billions of dollars that fast without enough oversight meant plenty of opportunities for scammers and cheats too. Now prosecutors here in Sacramento and around the country are cracking down hard on pandemic loan fraud.

Getting a Lawyer is Crucial if You’re Accused

If you’re a small business owner or employee who suddenly finds yourself accused of PPP or EIDL fraud, having an experienced defense lawyer on your side is critical. These cases can lead to serious criminal charges at both the state and federal level, and you may also face civil liability and have to pay back money. A lawyer who knows all the complex rules and regulations about these pandemic relief programs can build the strongest defense for you. They understand where prosecutors might be overreaching and how to negotiate for the best possible outcome.

What Kinds of Fraud Are They Going After?

Prosecutors are chasing all sorts of alleged PPP and EIDL fraud. Some of the most common accusations are:

• Making up fake businesses or using false documents to apply for loans or grants
• Lying about number of employees or payroll to get bigger PPP loans
• Spending PPP money on personal expenses like vacations instead of allowed costs like payroll
• Applying for multiple PPP loans from different lenders
• Not admitting to a criminal record or pending charges when applying for EIDL loans
• Laundering loan money or hiding where it came from

While some cases are just plain fraud with made-up companies and identities, a lot of others come down to people not fully understanding the complicated program rules. Good lawyers can often show their client wasn’t intentionally trying to commit fraud.

What Are the Penalties for PPP and EIDL Fraud?

Depending on the situation, alleged pandemic loan fraud can lead to either criminal or civil penalties at both the state and federal level. On the criminal side, charges could include:

• Wire fraud
• Bank fraud
• Making false statements
• Aggravated identity theft
• Money laundering

People found guilty face years in prison plus huge fines. For example, one Sacramento PPP fraud case had the defendant looking at 40 years behind bars. Even small things like paperwork mistakes can lead to criminal charges.

On the civil side, the government might try to get triple damages – three times the loan amount. There can also be civil fines from $10,000 up to $1 million per violation. The Small Business Administration can punish lenders who improperly approved fraudulent loans too. Companies could get suspended from government contracts, banned from federal loan programs entirely, and more.

How Can You Defend Against PPP and EIDL Fraud Charges?

Good criminal defense lawyers have several strategies to fight pandemic loan fraud accusations:

• Showing there was no intent to defraud – In many cases, business owners just didn’t know they were breaking program rules. It was negligence, not fraud.
• Blaming errors by lenders – Lenders often approved loans without checking properly or even pushed questionable applications to collect fees.
• Pointing to ambiguous program rules – PPP and EIDL programs were rolled out so fast that policies were unclear or contradictory, leading to accidental violations.
• Proving funds were used properly – The government might claim money was misused when really it did go to payroll and other allowed costs.
• Arguing constitutional violations – Overly broad subpoenas or illegal searches during investigations could get evidence thrown out.

In some cases, lawyers can demonstrate a client’s total innocence and get prosecutors to drop charges. Even if the case continues, skilled negotiation can lead to much lower penalties than what the government originally demanded.

Find an Experienced Sacramento Defense Lawyer

With so much pandemic relief money given out in a huge rush, some fraud was bound to happen. But well-meaning small business owners still deserve an aggressive defense against overzealous prosecutors. Look for a Sacramento lawyer with specific experience in state and federal white collar criminal cases and SBA lending rules. They’ll carefully evaluate all the details of your situation to build the strongest case for dismissal or reducing charges.

Don’t wait to get help if you think you might be under investigation or if law enforcement asks you about a PPP or EIDL loan. A lawyer can work proactively to prevent any charges from being filed in the first place. It’s crucial to quickly gather records and witness statements that could help your defense later on. Even if you’ve already been charged or arrested, skilled representation may still get charges lowered or dropped completely in many cases. With the right legal team in your corner, you can get through this crisis and back to business.