Marietta PPP Loan Fraud Lawyer

Marietta PPP Loan Fraud Attorney

The arrival of COVID-19 impacted various facets of society. The economy will likely feel, for years to come, the influence of this virus that shook the world leading into the 2020s. In an effort to provide support to businesses facing closure and bankruptcy, the government launched several programs, including the Paycheck Protection Program (PPP). Now, many of those businesses are seeking legal help from a Marietta PPP loan fraud lawyer.

The PPP kept millions of Americans financially afloat during the pandemic. However, the government is coming to collect repayment of those loans as they become due. As a result, many businesses are facing legal action against them, as they are being unfairly accused of PPP fraud.

Businesses that are under investigation or facing criminal charges for fraudulent PPP loan practices should not wait to seek legal counsel regarding these allegations, even if they believe them to be erroneous.

PPP Loan Requirements

For businesses to receive first-round PPP loan payments back in 2020, they had to meet certain conditions. These included being an established and running business prior to February 15, 2020, and one that has been open and operational when they submitted an application for PPP funding. In addition, they must not have had more than 500 employees at one location.

The second round of payments had more strict criteria, in that businesses must have met the first-round requirements but also have fewer than 300 employees and experienced at least a 25% drop in gross revenue since the onset of the pandemic.

The program was aimed specifically at supporting small businesses, but all types of entities were eligible, including non-profits. The program ended on May 31, 2021, at which time applications were no longer being accepted. In many cases, businesses that received PPP loan funds are eligible for PPP repayment forgiveness.

PPP Loan Fraud

Unfortunately, some businesses and individuals took advantage of PPP loan funding by misrepresenting information on the application. Some even claimed to be businesses that did not exist or did not meet the requirements to receive PPP loan payments. Another misuse of the program involved loan stacking, in which businesses received multiple PPP loans illegally.

Furthermore, PPP loans were earmarked to be used only for specific purposes, though these stipulations were not followed by some loan recipients. Now, businesses that filed for loan forgiveness under false pretenses are facing federal fraud charges.

Why These Charges Are So Serious

If someone lied about a business on an application for PPP loan payments, it means that they falsified information to two federal agencies: the Small Business Association (SBA) and the Department of Treasury. The potential consequences include up to $1,000,000 in fines and up to 30 years in federal prison.

In addition, if the business was audited or investigated by the SBA, the DOJ, or the FBI at any time, and false information was provided, additional fines of up to $50,000 and up to five years in federal prison can be incurred for lying to a federal agent.

Also, the following charges could be filed against businesses that are believed to have allegedly participated in PPP loan fraud:

• Bank Fraud – Carries up to $1,000,000 in fines, plus up to 30 years in federal prison
• Wire Fraud – Carries up to $500,000 in fines, plus up to 20 years in federal prison
• Tax Evasion – Tax Evasion -Carries up to $500,000 in fines, plus up to five years in federal prison
• Aggravated Identity Theft – Aggravated Identity Theft -Carries an additional two years of federal prison on top of any other related chargesAggravated Identity Theft -Carries an additional two years of federal prison on top of any other related charges
• Conspiracy or Attempt – Carries additional charges on top of other related charges

White collar crimes are serious charges in the Marietta and the greater metro Atlanta area. If you are facing them, it is highly advised that you hire an attorney who is experienced in defending against such allegations.

Marietta PPP Loan Fraud FAQs

Q: What Agency Investigates PPP Loan Fraud?

A: There are multiple government agencies charged with the task of investigating PPP loan fraud. These include:

• The COVID-19 Fraud Enforcement Task Force under the U.S. Department of Justice (DOJ)
• The Small Business Administration (SBA) Office of Inspector General (SBA-OIG)
• The Federal Bureau of Investigation (FBI)
• The Internal Revenue Service (IRS)

Q: Can You Turn Someone in for PPP Loan Fraud?

A: Yes, it is possible to turn someone in for Paycheck Protection Program loan fraud. To report an instance of PPP loan fraud, you may make an anonymous report via the False Claims Act (FCA) to the Department of Justice (DOJ) or the Small Business Administration (SBA) Office of Inspector General (OIG).

Q: Can PPP Loan Fraud Be Forgiven?

A: The PPP loans themselves can be forgiven. If a business complies with all the requirements of the program and can certify that they have done so, the government can forgive their loans. However, intentionally submitting false or incomplete certification is PPP loan fraud, which is considered one of many financial crimes involving PPP loans. These will be prosecuted as criminal charges, and you must face the justice system to fight these charges, ideally with the help of an experienced attorney.

Q: Can You Get Money for Reporting PPP Fraud?

A: Yes, PPP loan fraud whistleblowers are entitled to between 15% and 30% of any funds recovered from businesses found to be guilty of PPP loan fraud. With the assistance of the False Claims Act (FCA) legal team, a whistleblower may file a qui tam claim on behalf of the U.S. government to recover PPP loan fraud funds. There is no guarantee, though, that a whistleblower will receive compensation.

Contact The Law Office of Lawrence J. Zimmerman

If your business has been flagged by the U.S. government for an investigation into PPP loan fraud, a federal agent from one of the law enforcement agencies investigating these financial crimes or another federal authority will contact you.

If you have received notice that your business is suspect, if you think that you might be investigated, or if you have been charged with Paycheck Protection Program loan fraud, the most impactful thing you can do for your case is to contact a reputable Marietta PPP loan fraud attorney to discuss your case.

The Law Office of Lawrence J. Zimmerman is an experienced law firm that is well-versed in PPP loan fraud law. We are ready to help you defend your business against the U.S. government. Contact our office as soon as possible to get help for federal allegations of PPP loan fraud.