Mar 21, 2024

West Virginia PPP – SBA – EIDL Loan Fraud Lawyers

West Virginia PPP – SBA – EIDL Loan Fraud Lawyers

The COVID-19 pandemic led to an unprecedented amount of government aid being distributed to small businesses through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. While this aid was crucial for many businesses to stay afloat, the speed at which these loans were distributed also created opportunities for fraud. In West Virginia, PPP and EIDL fraud is on the rise, and business owners are facing serious criminal charges.

As West Virginia fraud defense attorneys, we have seen multiple cases of alleged PPP and EIDL fraud. The most common schemes include:

Loan “Stacking”

This involves applying for and receiving multiple PPP loans from different lenders for the same business. Business owners are only allowed one PPP loan, so obtaining more than one constitutes fraud.

PPP Loan Application Fraud

Falsifying information on a PPP loan application, such as number of employees, payroll expenses, or past revenues. Lying on these applications is considered loan fraud.

Fraudulent Loan Certification

Falsely certifying that PPP loan funds will be used for payroll and other allowable expenses. In reality, the business owner uses the money for personal expenses.

Using PPP Funds for Ineligible Business Purposes

PPP funds can only be used for certain business expenses like payroll, rent, utilities, etc. Misusing the funds for other purposes is illegal.

Using PPP Funds for Personal Enrichment

Business owners cannot use PPP loans to enrich themselves through bonuses, personal purchases, or other non-business uses. This constitutes fraud.

PPP and EIDL fraud charges are very serious. They are usually prosecuted under federal law as wire fraud, bank fraud, or false statements. Potential penalties include years in prison, massive fines, and having to repay all loan funds.

If you are being investigated or charged with PPP or EIDL fraud in West Virginia, it is critical to have an experienced federal defense lawyer on your side. Do not say anything to investigators without counsel present. We can evaluate your case and build the strongest defense.

Potential defenses in PPP/EIDL fraud cases include:

• You acted in good faith and did not intend to defraud
• Errors or mistakes were made, but there was no intent to deceive
• You used the funds for legitimate business purposes
• The lender was aware of all pertinent facts but still approved the loan
• The government guidance was unclear or contradictory

An aggressive defense can get charges reduced or even dismissed. Do not take chances with your future. Contact our West Virginia fraud lawyers for a free case review.

References

U.S Attorneys and FBI warn of potential fraud surrounding SBA loans – Department of Justice. (2020, May 1). https://www.justice.gov/usao-ndwv/pr/us-attorneys-and-fbi-warn-potential-fraud-surrounding-sba-loans

What to do if you’re billed for an SBA EIDL loan you don’t owe | Federal Trade Commission. (2021, March 9). https://www.ftc.gov/business-guidance/blog/2021/03/what-do-if-youre-billed-sba-eidl-loan-you-dont-owe

While AI can benefit the legal system, WVU law expert warns of potential errors and bias. (2023, August 8). https://wvutoday.wvu.edu/media-center-blog/2023/08/08/expert-pitch-while-ai-can-benefit-the-legal-system-wvu-law-expert-warns-of-potential-errors-and-bias

SBA/PPP Loan Fraud Defense Attorney – Have You Been Indicted? | Federal Lawyer. (n.d.). https://federal-lawyer.com/criminal-law/ppp-loan-fraud/

What to do if you’re billed for an SBA EIDL loan you don’t owe | Consumer Advice. (2021, March 9). https://consumer.ftc.gov/consumer-alerts/2021/03/what-do-if-youre-billed-sba-eidl-loan-you-dont-owe

West Virginia PPP – SBA – EIDL Loan Fraud Lawyers. (2023, September 12). https://www.federallawyers.com/criminal-defense/west-virginia-ppp-sba-eidl-loan-fraud-lawyers/

West Virginia PPP – SBA – EIDL Loan Fraud Lawyers