South Dakota PPP – SBA – EIDL Loan Fraud Lawyers

South Dakota PPP – SBA – EIDL Loan Fraud Lawyers

The COVID-19 pandemic led to major economic disruption across the United States, with many businesses struggling to stay afloat. To provide relief, the federal government created several loan programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan program (EIDL). These programs distributed billions of dollars in emergency loans to small businesses and nonprofits. However, the rush to get money out led to limited oversight and ripe conditions for fraud.

Now federal investigators are scrutinizing PPP and EIDL loans for fraud. If you or your business in South Dakota received one of these loans, you could face serious charges if something was amiss in your application or use of funds. An experienced white collar criminal defense lawyer can protect your rights. Let’s examine issues around PPP and EIDL fraud allegations in South Dakota.

South Dakota PPP Loan Fraud

The Paycheck Protection Program distributed huge sums of money to businesses and nonprofits as potentially forgivable loans. To get a PPP loan forgiven, borrowers had to use at least 60% on payroll and 40% on other approved expenses like rent and utilities. With limited vetting on applications, some applicants saw it as free money without enough accountability.

PPP loan fraud can include a range of activities like:

• Lying on a PPP loan application about number of employees, payroll expenses, or other information to get a larger loan amount or increased chance of approval
• Using PPP funds for prohibited purposes like personal expenses instead of approved costs like payroll and rent
• Applying for and receiving multiple PPP loans by using different business names or other tricks
• Colluding with a lender to rubber stamp a fraudulent PPP loan application

PPP loan fraud is a federal offense. The U.S. Department of Justice is aggressively pursuing PPP fraud cases and has already charged hundreds of individuals and companies. Penalties can include:

• Repayment of the full PPP loan amount
• Fines equal to the amount of the PPP loan funds or up to $1 million
• Up to 30 years in federal prison for felony fraud

In addition to criminal prosecution, PPP borrowers could face civil lawsuits or administrative enforcement from the Small Business Administration (SBA) or their lender. It’s essential to consult an experienced attorney if you’re under PPP fraud investigation.

South Dakota EIDL Fraud

The SBA’s Economic Injury Disaster Loan program also distributed billions in COVID relief funds to small businesses and nonprofits. These loans have attractive terms like 3.75% interest and 30-year repayment periods. But with so much money going out so quickly, fraud was rampant.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

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2024-03-12

Very professional, very transparent, over all a great experience

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2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

EIDL fraud issues may include:

• Falsely claiming on an EIDL application that COVID-19 severely impacted your business revenues
• Using an EIDL loan for personal purchases instead of approved business expenses
• Applying for multiple EIDL loans using fake businesses or stolen identities
• Colluding with an SBA employee to facilitate fraudulent EIDL loan approvals

As with PPP loans, EIDL fraud carries severe consequences like:

• Full repayment of the EIDL loan
• Fines equal to the loan amount or up to $1 million
• Up to 30 years imprisonment for felony fraud

EIDL borrowers face criminal prosecution, civil lawsuits, or SBA enforcement actions for fraud. These are serious matters that call for an attorney’s help.

Defenses Against SBA Loan Fraud Charges in South Dakota

The government has to prove its case if you’re accused of PPP or EIDL fraud. An experienced lawyer can evaluate if you have defenses like:

• Lack of intent – The government must prove you knowingly committed fraud instead of making an honest mistake.
• Coercion – Someone else pressured you into fraudulent activities.
• Minimal harm – The dollar amounts were small and quickly repaid.

Other defenses depend on the specifics of your case. For instance, you could argue the loan funds were in fact used properly for payroll or other approved expenses. Or claim another party submitted a fraudulent application without your knowledge. The right lawyer understands SBA program rules and how to build a defense.

Choose an Experienced SBA/PPP Fraud Lawyer in South Dakota

Dealing with allegations of PPP or EIDL loan fraud is scary. But an experienced federal defense lawyer can protect your rights and future. Look for a lawyer with specific experience defending SBA fraud cases. They will know how these complex investigations work and the most effective defense strategies.

A skilled attorney can also negotiate with prosecutors or initiate an independent investigation. Their goal is getting charges reduced or dismissed, fines minimized, and avoiding jail time. If you or your South Dakota business is under investigation for PPP or EIDL fraud, time is of the essence. Consult a seasoned criminal defense lawyer right away before making any statements to investigators.

With an attorney’s guidance, you can move forward and put these SBA fraud allegations behind you. Don’t wait to seek experienced legal representation.