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PPP LOAN FRAUD LAWYERS & SBA FRAUD DEFENSE LAWYERS
(0) Comment |Shield Your Business from PPP Loan Fraud Allegations with the Aid of Skilled Attorneys
The Paycheck Protection Program (PPP) was established to offer critical financial support to small and medium-sized businesses reeling from the devastating impacts of the COVID-19 pandemic. With a staggering $300 billion in federal funds disbursed, it’s hardly astonishing that allegations of fraud have surfaced in relation to this program. If your business has benefited from PPP loans, be aware that you may be susceptible to investigation for potential fraud.
At Spodek Law Group, we recognize the vital importance of safeguarding businesses from these grave accusations. Our exceptional team of seasoned lawyers specializes in vigorously defending clients against PPP loan fraud charges. Allow us to expertly guide you through the intricate legal process, drastically reducing the likelihood of facing severe penalties.
Notable Examples of PPP Loan Fraud Currently Under Prosecution
Numerous cases have emerged in which individuals have been indicted for fraudulently seeking PPP loans. Some notable examples include:
– Two individuals in Rhode Island faced charges of conspiring to obtain forgivable loans guaranteed by the Small Business Administration (SBA) by falsely claiming they employed a large number of workers across various business entities when, in reality, they had no employees at all.
– A reality TV star and trucking company owner faced severe charges of bank fraud and money laundering after egregiously misusing funds intended to aid his struggling business during the COVID-19 pandemic. He applied for a staggering $3.7 million in PPP funds, only to squander them on extravagant jewelry, child support, and an opulent Rolls-Royce instead.
What Constitutes Paycheck Protection Program (PPP) Loan Fraud?
When scrutinizing potential federal fraud incidents related to PPP loan applications, there are two key factors to consider: deliberate misrepresentations and unintentional errors resulting in the improper receipt of federal funds.
Loan Stacking, a specific type of fraud, ignited the interest of the Office of the Comptroller of the Currency (OCC) as a practice where companies could obtain multiple loans from a variety of lenders. Those found guilty of this practice could face prosecution.
Other instances of fraud include the falsification or misclassification of employee numbers, payroll expenses, and SBA status. Additionally, companies must confirm that their PPP loan was absolutely necessary for maintaining operations and that the allotted funds were exclusively used to retain employees and cover lease, mortgage, and utility costs.
Improper Use of PPP Funds
Companies receiving loans through this program are strictly required to allocate the funds for specific purposes, such as covering payroll and benefit costs, utilities expenses, and mortgage or lease payments. Utilizing these funds for any purpose not outlined in PPP guidelines is likely to result in allegations of potential fraud.
False Loan Forgiveness Certification
Businesses may request loan forgiveness if they meet eligibility requirements and have used the allocated funds solely for the expenses outlined in the PPP. To be considered for loan forgiveness, companies must submit accurate documentation certifying that all provided information is genuine and correct.
Misrepresentation or Concealment of Information During a PPP Audit or Investigation
It is imperative that businesses cooperate fully with investigations conducted by the Federal Bureau of Investigation (FBI) and Department of Justice (DOJ). Withholding relevant information or making false statements is regarded as fraud and may result in prosecution.
Enlist the Expertise of a Knowledgeable Attorney to Safeguard Your Business from Fraud Allegations
If your business is currently under investigation for possible fraud relating to PPP loans, it is of paramount importance that you secure the services of a highly experienced lawyer specializing in defending clients against such charges. At Spodek Law Group, we collaborate with talented federal defense attorneys adept in various legal fields, including COVID-19 pandemic-related issues such as PPP loan fraud allegations. Don’t hesitate to contact us today so we can dedicate ourselves to preserving your interests while fiercely contesting any potential lawsuits and charges!