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Boston PPP Loan Fraud Lawyers

April 4, 2021

If you’re being prosecuted or being investigated for SBA loan fraud or PPP loan fraud, you need a federal defense law firm to help you.

Few areas are under more scrutiny than PPP/SBA EIDL/CARES Act fraud. The banking and financial programs setup by the CARES Act, designed to distribute money to individuals/businesses in times of need during national diaster, are being heavily monitored for potential fraud. The PPP program was designed to give financial aid for small businesses and medium sized businesses. In addition to the PPP, the US government created the EIDL program, which is another source of funding.

Since it’s creation, the CARES Act has been monitored for possible fraud. Billions of dollars were disbursed with little oversight. Many loan recipients are being scrutinized, and investigated, by federal authorities for potential fraud. If you, or your business, in Boston, are one of the targets of law enforcement, you need the help of a PPP fraud federal criminal defense lawyer who can help you.

Many federal and state law enforcement agencies are currently involved in active investigations of loan recipients who fraudulent received PPP loans, or SBA EIDL loans. In addition to the DOJ, other agencies such as the FBI, IRS, and Secret Service, are targeting and investigating individuals.

You can get prosecuted for multiple loans

One type of enforcement action, is pursuing businesses who got multiple PPP or SBA loans, for the same corporation, from multiple lenders. Often, this is referred to as “loan stacking,” and is a common offense. If an applicant filed more than one application knowingly, or unknowingly, depending on the circumstances – a potential criminal fraud case may be pursued by the authorities. The business is not allowed to get multiple loans.

Material Misrepresentations

The PPP and EIDL require disclosure of details, with no misrepresentations. If you falsely claim, for example, you had 10 employees, then it’s likely you could be investigated and prosecuted for fraud. Any business materially misrepresenting information in its PPP/EIDL application is likely to face prosecution.

Improper Use of Funds

Both the PPP and EIDL require that funds be used for business purposes. The PPP was very specific, whereas the EIDL is more vague.

What should you do if federal/state law enforcement is investigating or prosecuting you for SBA/PPP loan fraud?

There are rules to the PPP and SBA loan programs. If you, or your business, are being investigated, it’s critical you hire an SBA/PPP loan fraud attorney at Lawscape immediately.

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