Mar 21, 2024

Kansas City PPP – SBA – EIDL Loan Fraud Lawyers

Kansas City PPP – SBA – EIDL Loan Fraud Lawyers

As a Kansas City business owner or employee, you may have concerns about potential fraud related to PPP, SBA, or EIDL loans. These government-backed loans were intended to provide emergency financial relief during the COVID-19 pandemic. However, amid the rush to distribute funds, there have been reports of abuse and fraud.

If you suspect fraud in PPP, SBA or EIDL loan applications, it’s important to consult experienced legal counsel. Kansas City has top-notch white collar criminal defense attorneys who can advise whistleblowers and defendants on the best course of action.

Federal Laws Related to PPP, SBA and EIDL Loan Fraud

Several federal laws may apply if someone has deliberately provided false information on a COVID-19 relief loan application, or misused loan proceeds:

• Wire fraud – 18 U.S.C. § 1343
• Bank fraud – 18 U.S.C. § 1344
• False statements – 18 U.S.C. § 1001
• Money laundering – 18 U.S.C. § 1956

Defendants charged with federal crimes can face severe punishments like imprisonment, fines, restitution and asset forfeiture. For instance, wire fraud and bank fraud carry maximum prison sentences of 30 years and 1 million dollar fines.

Prosecutors often pursue multiple charges with penalties that stack up exponentially. For a Kansas City business owner facing PPP fraud accusations, the stakes may be higher than they realize.

PPP, SBA and EIDL Loan Fraud in Kansas City

In 2020 and 2021, the federal government approved over 11 million PPP loans totaling nearly $800 billion. Another $500 billion went out through the SBA’s Economic Injury Disaster Loan (EIDL) program.

With huge sums being distributed on an emergency basis, fraud was rampant. The House Select Subcommittee on the Coronavirus Crisis identified over $84 billion in potentially fraudulent EIDL and PPP loans. The Justice Department is aggressively prosecuting COVID relief fraud, with charges filed against hundreds of defendants so far.

In the Kansas City area, some notable PPP and EIDL fraud cases include:

• A Nixa, MO roofing contractor who received over $700,000 in PPP loans, which he used to buy a residential property, vehicles, jewelry and other personal items. He pled guilty to bank fraud.
• A Kansas City, KS man who sought over $400,000 in fraudulent PPP and EIDL loans. He pled guilty to wire fraud and money laundering.
• A St. Joseph, MO used car dealership owner who obtained $1.4 million in PPP loans, which he used to buy classic cars and pay personal debts. He pled guilty to bank fraud.

Business owners are not the only ones at risk. Employees who helped prepare fraudulent paperwork could also face prosecution.

Whistleblower Rewards for Reporting Fraud

Under the False Claims Act, whistleblowers may receive 15-30% of funds recovered if their tip leads to a successful fraud prosecution. Over $1.6 billion has been paid out to whistleblowers in COVID relief cases so far. In Kansas City, qui tam attorneys offer free consultations to review potential cases.

However, whistleblowers also face retaliation risks. An experienced whistleblower lawyer can advise on anonymity options, help build a strong case, and defend against employer retaliation.

Defending Against PPP, SBA and EIDL Fraud Charges

If you are being criminally investigated or charged with COVID relief fraud, it’s essential to engage experienced legal counsel immediately. Skilled Kansas City federal defense attorneys can often get charges reduced or dismissed through:

• Negotiating with prosecutors
• Contesting evidence
• Raising affirmative defenses
• Filing motions to suppress
• Taking cases to trial if needed

An attorney may also be able to return seized assets through forfeiture proceedings. For defendants facing multiple serious federal felonies, the top priority is avoiding lengthy imprisonment.

Avoiding Civil Liability in PPP, SBA and EIDL Fraud Cases

Beyond criminal prosecution, making false statements on COVID relief loan applications can also lead to civil False Claims Act lawsuits. These can result in treble damages penalties equal to 3 times the amount of funds obtained by fraud.

However, experienced attorneys can often resolve civil FCA charges through negotiating a favorable settlement. This may allow a business to move forward without long-term damage.

Consulting a Lawyer for PPP, SBA and EIDL Fraud Issues

With steep criminal penalties on the line, it’s vital to engage legal counsel promptly if you have any involvement with potential COVID relief loan fraud. Top Kansas City attorneys offer honest assessments and strong advocacy to protect your rights and interests.

Kansas City PPP – SBA – EIDL Loan Fraud Lawyers