Paycheck Protection Fraud Lawyer
Payment Process Protection Program (PPP) Fraud Criminal Lawyer
PPP fraud is a federal crime
An individual suspected of fraud in connection with the Paycheck Protection Program (PPP) may face civil and/or criminal penalties. The PPP is a federally funded program, so any criminal fraud charges that result from misuse of this program are likely to be heard in federal court.
Federal criminal charges such as aggravated identity theft (18 U.S.C. § 1028A(a) (1)) are so serious that they can include mandatory prison sentences. That's why it's important to hire a criminal attorney with experience in federal fraud charges.
Examples of PPP scam
1. Obtaining a PPP loan using another individual's identity.
2. Obtaining multiple PPP loans from many lenders under a Small Business Administration 7(a) agreement (commonly known as "loan stacking").
3. Misrepresentation of company payroll costs or number of employees in order to obtain additional funds for the PPP loan.
4. Use of PPP loan funds for non-qualified commercial purposes.
5. False testimony that the company has fully complied with the terms of the PPP and that the company is therefore entitled to loan forgiveness.
Federal Prosecution in criminal cases PPP . loans
The SBA-OIG (SBA) and DoJ (Department of Justice) are strongly focused on pursuing criminal charges in cases where efforts to defraud the PPP appear to have been deliberate. This is because lack of intent can be a defense of criminal offence.
Possible fees in cases of PPP loan fraud can include:
“Aggravated identity theft” (18 U.S.C. § 1028A)
“Attempt and Conspiracy” (18 U.S.C. § 1349)
“Bank Fraud” (18 U.S.C. § 1344)
(Generally) Making False Statements to the Small Business Administration (18 U.S.C. § 1014)
(generally) making false statements to a bank insured by the Federal Insurance Corporation (18 U.S.C. § 1014)
(generally) making false statements to federal agents ((18 U.S.C. § 1001)
Tax Evasion (26 U.S.C. § 7201)
Wire Fraud (18 U.S.C. § 1343)
Are you under investigation for loan fraud from PPP?
You may learn of an investigation by receiving a letter in the mail or knocking on the door from a federal agent. You may also discover that your bank account(s) have been confiscated or frozen. If this happens, please contact us for a free legal advice. There are steps that must be taken quickly to respond to this action in order to challenge your detention and/or protect you from criminal charges.
If a federal agent contacts you in connection with your PPP loan, please consider contacting a PPP fraud attorney before making any statements or providing any documentation. This is your right and it will not be against you. Getting the help of a lawyer early on can avoid further complications such as additional penalties for obstruction of justice or making false statements.
What is the penalty for PPP fraud?
Depending on the circumstances, the federal government might charge people accused of defrauding the PPP under the following provisions: 15 U.S.C. § 645: Making a false statement to the SBA. This can result in a fine of up to $5,000 and up to 2 years in prison.
Can you go to jail for a PPP loan?
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
Is there a reward for reporting PPP fraud?
The law provides a financial incentive for whistleblowers to report such wrongdoing by filing a lawsuit on behalf of taxpayers. This "qui tam" provision allows prevailing whistleblowers to receive up to 30% of the money returned to the U.S. Treasury.
Is PPP loan fraud a crime?
It is illegal to make false statements to a financial institution, so if you were to lie on a PPP loan, you could be charged with this federal crime. This act is criminalized under section 1014 and if convicted, you can face quite a hefty fine along with imprisonment for up to 30 years.
What happens if you don't pay back a PPP loan?
In short, bankruptcy may offer a solution for those unable to repay unforgiven PPP loans, and in some cases may also help resolve EIDL loans. However, the borrower should first explore the possibility of forgiveness–the requirements are less stringent than when the program was first created.