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So your probably staring at this Civil Investigative Demand from the SBA or DOJ about your PPP loan, EIDL, or 8(a) certification and your entire business is collapsing. Maybe you made errors on loan applications. Maybe you misrepresented your disadvantaged status. Or maybe your just caught up in there massive fraud sweep. Look, we get it. Your ABSOLUTELY HORRIFIED. And you should be! Because PPP fraud carries 20 YEARS in federal prison and $1 MILLION in fines – and the SBA has referred 54,000 cases for prosecution!
Let me explain the small business nightmare your facing. The SBA-OIG is auditing ALL companies that received PPP loans over $2 million! There reviewing every application, every certification, every forgiveness request!
The SBA doesn’t investigate alone – they coordinate with FBI, IRS Criminal Investigation, DOJ, Secret Service, and Treasury! Your facing a MULTI-AGENCY task force dedicated to destroying “fraudsters” – even if you made honest mistakes! We’ve seen legitimate businesses destroyed over accounting errors!
Here’s what’s really scary – SBA estimates $200 BILLION in potentially fraudulent COVID loans! There desperate to show results, make examples, and recover money! Your not getting mercy – your getting prosecuted to justify there existence!
Hold onto your business license because these numbers will bankrupt generations!
False Claims Act means TREBLE DAMAGES plus $28,000 per claim! Got a $1 million PPP loan? That’s $3 million in damages! Each certification is a separate claim! Weekly certifications for employee retention? That’s 52 violations = $1.4 million in penalties alone!
Criminal penalties are DEVASTATING – wire fraud carries 20 years prison and $250,000 fine! Bank fraud adds 30 years! Money laundering another 20 years! We’ve seen small business owners face 50+ year sentences for loans they’ve already repaid!
8(a) fraud is particularly CATASTROPHIC! SBA announced full-scale audit covering 15 YEARS of contracts!
Misrepresented disadvantaged status? Your facing False Claims Act liability for EVERY contract received! Joint ventures where the 8(a) partner didn’t do real work? FRAUD! Changed ownership but kept certification? Criminal false statements! We’ve seen companies pay $7.8 million for eligibility issues!
The worst part – suspension and debarment! Lose 8(a) status, get banned from ALL federal contracting, affiliates debarred too, and employees blacklisted! One violation destroys your entire government contracting business FOREVER!
Your probably wondering “How did they flag me?” Let me tell you what puts businesses in SBA’s crosshairs:
Banks filed Suspicious Activity Reports on PPP loans! Your own lender reported you! Automated algorithms flag “anomalies” – high payroll relative to revenue? Flagged! New business with big loan? FLAGGED! Changed banks after getting funds? SUPER FLAGGED!
Whistleblowers are everywhere! Employees, competitors, ex-partners get rewards for reporting! That fired worker knows you inflated payroll? They’re calling SBA! Competitor who lost 8(a) contract? Claiming your not really disadvantaged!
NO! This is the cruelest misconception! Forgiveness doesn’t stop investigations – it triggers them!
Forgiveness applications get extra scrutiny! Different numbers than original application? Red flag! Can’t document payroll exactly? FRAUD INDICATOR! Used funds for anything besides approved expenses? Criminal violation! We’ve seen forgiven loans become criminal cases years later!
Even REPAYING the loan doesn’t help! DOJ says repayment shows consciousness of guilt! Still liable for False Claims Act penalties! Still face criminal prosecution! One client repaid $500,000 immediately but still got 3 years prison!
The scope is absolutely overwhelming! SBA demands EVERYTHING about your business:
All bank statements for 3 years before and after loans, payroll records including every timesheet and pay stub, tax returns (business and personal), emails about loans or employees, accounting systems and QuickBooks files, contracts and invoices showing revenue, even personal credit card statements!
For 8(a) firms its worse – ownership documents going back decades, proof of social and economic disadvantage, net worth calculations for all owners, every government contract and subcontract, proof you performed “commercially useful function”! How do you prove disadvantage from 15 years ago? You can’t!
Prepare for YEARS of torture while your business slowly dies! SBA investigations are intentionally lengthy:
Initial CID response (30-60 days of document production), OIG review and analysis (6-12 months), coordination with criminal agencies (ongoing), follow-up subpoenas and interviews (6-12 months), DOJ prosecution decision (6-12 months), trial or plea negotiations (12-24 months)!
Your looking at 3-5 years MINIMUM! During this time, bank accounts frozen, credit destroyed, SBA loans called due, contracts cancelled! Legal fees? Expect $500,000 to $1 million! We’ve seen profitable businesses forced into bankruptcy before investigations conclude!
SBA refers THOUSANDS for criminal prosecution! GAO reports SBA referred 54,000 PPP loans to OIG for fraud!
The Pandemic Response Accountability Committee coordinates prosecutions! Every agency shares information! IRS gets your case? Criminal tax charges added! Secret Service involved? Identity theft charges! FBI investigating? Wire fraud, mail fraud, conspiracy! We’ve seen single PPP loans trigger 15 different criminal charges!
Recent sentences are terrifying – restaurant owner got 5 years for inflating payroll! Construction company CEO got 7 years for EIDL fraud! 8(a) contractor got 10 years for misrepresenting ownership! These aren’t career criminals – there small business owners who made mistakes!
This is an IMPOSSIBLE trap! Cooperate and provide evidence against yourself, resist and face obstruction!
Providing documents proves violations! That employee you laid off then rehired? Shows you didn’t maintain payroll! Paid yourself a bonus? Improper use of funds! Can’t find perfect documentation? Assumed fraud! Your cooperation becomes your conviction!
But not cooperating guarantees destruction! SBA assumes maximum fraud, refers immediately for criminal prosecution, seeks maximum penalties! We’ve seen businesses destroyed for asserting attorney-client privilege over emails!
States are piling on with there own prosecutions! Texas, California, New York aggressively prosecuting PPP fraud!
State charges stack on federal! State wire fraud, theft, money laundering, tax evasion! Different theories, different courts, different sentences! We’ve seen business owners face federal AND state prison time for same loan!
Media coverage destroys reputation! Local news loves PPP fraud stories! Your name, business, mugshot plastered everywhere! Customers flee, employees quit, vendors demand cash! Even if your acquitted, your business is destroyed!
ABSOLUTELY! SBA fraud isn’t limited to business assets! Personal liability for owners is standard!
Piercing corporate veil for fraud! Personal guarantees on loans! Asset forfeiture of homes, cars, retirement accounts! We’ve seen owners lose everything – house seized, 401k drained, kids’ college funds frozen! Wife’s separate property taken because of joint tax returns!
Clawback provisions reach EVERYTHING! Transfers to family? Fraudulent conveyance! Gifts to charity? Recoverable! Paid off mortgage? They take the house! The government literally leaves you with nothing!
Look, we’re not your typical business lawyers who just help with loan applications. We’re federal criminal defense attorneys who specialize in keeping business owners out of prison when SBA issues become criminal prosecutions!
We understand the intersection of SBA regulations, False Claims Act, and criminal fraud statutes. We know how forgiveness applications trigger investigations. We can challenge the government’s calculation methods and damage theories. Most importantly, we prevent civil investigations from becoming criminal indictments!
Other firms tell you to cooperate and provide everything. That’s EXACTLY how business owners end up in federal prison! The government doesn’t care that you saved jobs during COVID – they want convictions and asset forfeiture. We fight strategically, protecting your freedom and assets!
Call us RIGHT NOW at 212-300-5196
SBA investigations destroy businesses overnight!
Former federal prosecutors – PPP fraud defense experts – Available 24/7!
Don’t wait another second! SBA-OIG is analyzing your loan data right now! Criminal agents are preparing subpoenas! Your bank has already filed SARs! The investigation is further along than you know!
Remember – SBA fraud isn’t about repaying loans anymore. Its about prison time and losing everything you’ve built. One wrong certification, one documentation error, one misunderstood requirement can trigger decades in federal prison. You need someone who understands both small business complexity AND federal criminal defense. Call us NOW before that CID becomes handcuffs!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS