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PPP Loan Fraud Lawyers

November 21, 2020 Federal Criminal Attorneys

Are you wondering whether your company can be prosecuted due to paycheck protection program fraud? On 27th March this year, the federal government started the Coronavirus aid program, providing companies with financial support ensuring they continue paying their employees and support their objectives.

This financial aid aims at providing you and your employees with financial relief to get the job done. This act was part of the recovery program after companies lost a lot of money due to the ongoing pandemic. After the endowment, the lenders’ offices flooded with applications, and the allocation ran out fast. Today there are audits, and investigations started to identify people involved in paycheck protection program fraud. During such a period, many companies expect to face hefty fines and scrutiny from the federal government.

More than $350 billion were endowed to this program. However, people have been taking advantage of the situation, providing fake documents, and receiving more than intended. Here is a guide on PPP loan frauds and what to do if faced with such a situation.

What Defines a Paycheck Protection Program Loan Fraud?

Paycheck protection program fraud includes misrepresentation and wrong information, causing your business significant criminal fraud charges. Also, an improper receipt for the allocated funds will cost you a great deal.

Loan Certification

Before receiving this loan, you were required to give certifications in good faith to prove various facts. Any bad certifications are regarded as a fraud and can lead to charges. The company applying for paycheck protection program loans were required to provide a current economic status that shows that your company needs the loan to support ongoing programs.

You were also required to show that you will not receive any other fund under the same program. If you gave any false information, then such an act is regarded as fraud. When the federal government starts the investigation, you can be charged for such an action, which will lead to significant loss and breaking your company reputation.

Loan Stacking

If you were part of the paycheck protection program, you need to understand which allegations can befall your company. One of the significant fraud related to this program includes loan stacking. This type of paycheck protection program fraud involves applying and receiving payments from more than one lender.

The currency’s comptroller is at the front line, explaining and defining what PPP loan stacking is all about. This office has demonstrated that the government is tracking those companies that applied and received funds from more than one lender.

In case your company is part of this scum, then you are an early target as the federal government tries to prosecute PPP fraud. You will need a professional PPP loan Fraud lawyer to represent and allow you to set things right.

Fraud in PPP loan Application

The criteria for Paycheck Protection Loan application was simple and well defined; therefore, companies applying for this loan had no excuse to manipulate or be involved in fraud. Giving false information to meet the set eligibility criteria is also fraud and can cost your business a great deal.

The federal government had stated that only companies with 500 fewer employees qualified to get this loan—the number of employees as part of what defined the company’s eligibility. If you gave wrong information that led to misclassifying your company, then this is regarded as fraud.

Companies categorizing their employees as independent contractors to meet these standards is regarded as part of the fraud. Moreover, the companies were receiving money based on payroll costs; thus, people gave the wrong information.
The law clearly states that such an act will lead to prosecution, thus requiring a strong team of experts. When faced with such a situation, hire professionals to represent you and find justice for your company.

Using funds for ineligible purposes

After the government decided to give these financial aids, they did it to help business owners continue running their business, pay their employees, and no for personal gains. However, people who received these funds are now using it for immoral purposes, such as purchasing private cars.

The federal government states clearly that the business should provide receipts for all transactions, expenses, and payments made with this allocation. You should use this money to pay your employees, pay interests on any mortgage, cover utilities and rent.

Any other purposes are impermissible and categorized as PPP fraud. During a federal investigation, any expenses made using this loan should be as per the given standards. Victims who used this money for other purposes also need professional lawyers to represent them in a federal court and seek justice.

Concealing information during an audit

PPP fraud does not stop on expenditure since companies are now faking documents when under investigation to avoid charges if your company needs a professional opinion and be careful not to disclose any harmful information.

The best thing for you to do is to avoid making any mistakes or concealing information. Withholding information or providing false statements is a form of fraud. You need lawyers with extensive PPP loan fraud experiences to guide you and get you out of challenging situations.

If you are caught up in PPP loan fraud, you should hire expert lawyers from a reputable company to guide and protect your business. You will have peace of mind knowing your business is protected and free from any of the above PPP loan fraud, which can cost you a lot of money and business reputation.



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