Criminal Defense Lawyers

What Should I Do if Facing Bank Fraud Charges for PPP Issues?

What Should I Do if Facing Bank Fraud Charges for PPP Issues?

Dealing with potential bank fraud charges related to the Paycheck Protection Program (PPP) can be an incredibly stressful and confusing situation. As a small business owner who applied for these emergency loans during an unprecedented global pandemic, you likely had the best intentions of keeping your business afloat and employees paid. However, errors or miscalculations in the application process could unintentionally lead to criminal charges.If you find yourself facing accusations of bank fraud, wire fraud, or making false statements in relation to PPP loans, it’s imperative that you don’t go through this alone. The experienced white collar criminal defense attorneys at [Firm Name] are here to guide you through this process and protect your rights every step of the way. Keep reading to learn more about potential PPP bank fraud charges, possible defenses, and proactive steps to take if you find yourself under investigation.

Overview of Potential PPP Bank Fraud Charges

The Paycheck Protection Program was launched in April 2020 as part of the CARES Act to deliver emergency capital to small businesses impacted by COVID-19. In the rush to apply and disburse funds quickly, both applicants and lenders made mistakes leading to allegations of fraud for some PPP recipients. As federal investigators audit more emergency loans, criminal charges could arise relating to:

• Wire fraud – Falsifying information or documentation to obtain PPP loan funds.
• Bank fraud – Making false representations or statements to receive money from an FDIC-insured bank.
• Making false statements – Providing inaccurate or doctored paperwork, tax documents, payroll records, number of employees, or other reporting.

The penalties for federal bank fraud convictions are severe, including hefty fines and years in prison. It’s critical to consult an attorney as soon as you learn you are under investigation to protect yourself.

Common PPP Issues Leading to Alleged Fraud

Honest mistakes or misunderstandings of PPP loan rules could wrongly appear fraudulent to investigators. Some common scenarios include:

• Incorrect calculation of payroll costs – Determining the maximum loan amount can be tricky for seasonal businesses, contractors, sole proprietors, and others with fluctuating income. An inaccurate calculation could seem purposefully inflated.
• Inability to produce required documentation – Failure to provide evidence of qualifying expenses, number of employees, tax documents or other paperwork could raise suspicions even if records were simply lost or disorganized.
• Misuse of funds – While the rules evolved, some early misunderstanding of how funds could be spent might be alleged as improper use by prosecutors.

If charged, the burden would be on you to show these issues were unintentional errors, not deliberate attempts to commit fraud.

Building a Strong Defense Against PPP Bank Fraud Charges

The skilled white collar crime attorneys at [Firm Name] have successfully defended business professionals against complex fraud accusations and related financial charges for decades. If facing prosecution for PPP loan issues, key elements of a strong defense case could include:Demonstrating good faith efforts – While mistakes may have happened in your application paperwork, you likely acted in good faith and relied on the best information you had at the time. We can show the jury you had no ill intent.Highlighting the chaotic, rushed process – The enormous demand for emergency PPP loans required lenders and applicants to move at unprecedented speed. Documentation requirements and rules seemed to change daily in this volatile climate. It would be understandable for errors to occur under such intense pressure.Disputing allegations of personal gain – These loans were intended to cover essential business expenses during state-ordered shutdowns to control the virus’ spread. You likely did not benefit personally and were simply trying to survive.Focusing on corrected errors – As soon as any application issues came to light, you took responsibility and fixed them. This accountability and transparency works in your favor.

Take These Steps If Facing PPP Fraud Charges

If you have reason to believe you are under investigation or could soon face criminal prosecution related to your COVID relief loan application, immediate action is critical for protecting yourself:

Christine Twomey

2024-03-21

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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

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2024-02-28

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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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• Consult an attorney – Do NOT speak to investigators without qualified legal counsel present to defend your rights. Anything you say can be used against you.
• Gather documentation – Collect any paperwork, emails, texts and evidence relating to your PPP loan application, funds receipt and expenditures. An attorney can help organize this critical information.

• Write a timeline – Document to the best of your recollection the complete timeline of your loan application, approval, expenses, interactions with lenders and more. This can help jog your memory if testifying.
• Avoid retaliatory actions – Under pressure, it’s tempting to want to strike back against perceived injustices. Resist taking retaliatory actions which could further implicate you. Let your attorney do their job.

We have an exceptional track record guiding clients to positive resolutions of federal fraud accusations. Call us today for a free case review, and we’ll discuss defense strategies tailored for your unique PPP loan situation.