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The U.S. Department of Justice (DOJ) is relentlessly pursuing fraud investigations under the Paycheck Protection Program (PPP), having already filed charges in numerous cases. Business owners and executives charged in these cases are facing significant penalties. It is crucial to understand the DOJ’s approach and potential defenses in order to protect yourself and your business. The Spodek Law Group can help you navigate these investigations and defend against PPP loan fraud allegations.
Facing a DOJ investigation for PPP loan fraud is a grave matter with serious consequences for companies, their owners, and executives. If you or your company is being targeted in a PPP loan fraud investigation, here’s what you need to know:
The DOJ is aggressively targeting individuals and companies suspected of submitting fraudulent loan applications, making unauthorized use of PPP loan funds, or submitting fraudulent certifications for PPP loan forgiveness. The DOJ has emphasized that it will be “aggressive in targeting anyone who defrauds this critical program.”
The risk of facing a DOJ PPP loan fraud investigation is not merely theoretical. The DOJ has charged individuals with creating shell companies, falsifying payroll information, using PPP loan funds for lavish personal expenses, and attempting to obtain multiple PPP loans, among other forms of PPP loan fraud. The DOJ is constantly conducting covert investigations focused on uncovering evidence of fraud.
If the DOJ finds evidence to support allegations of PPP loan fraud, this can lead to a broad range of federal charges. Some of these charges carry substantial fines and terms of imprisonment—in some cases up to $1 million and 30 years for a single offense. Defending against the DOJ’s allegations requires the representation of a group of highly-experienced federal defense lawyers, such as those at the Spodek Law Group.
The DOJ is working with multiple other federal agencies, including the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Federal Bureau of Investigation (FBI), and Internal Revenue Service Criminal Investigations (IRS-CI), to investigate and prosecute PPP loan fraud.
Despite the significant risks, there are many potential defenses against allegations of PPP loan fraud. Some of the defenses that individuals and companies can assert during DOJ PPP loan fraud investigations include:
| Defense | Description |
|---|---|
| Paycheck Protection Program Compliance | Demonstrate compliance with the terms of the PPP by providing proof of lawful loan acquisition, segregated PPP loan accounts, and appropriate use of PPP funds. |
| Lack of Intent to Defraud | Show that any violations were unintentional, which could provide a defense against criminal charges but may still be subject to civil penalties. |
| Unconstitutional Investigative Procedures | Identify any flaws in the DOJ’s investigation related to constitutional rights, such as violations of the Fourth Amendment’s probable cause requirements and prohibition on unreasonable searches and seizures. |
| Lack of Evidence of Fraud | Challenge the DOJ’s ability to prove guilt beyond a reasonable doubt or the admissibility of its evidence due to constitutional violations. |
Allegations of PPP loan fraud cannot be ignored, and PPP loan recipients must proactively assess their risk and take steps to mitigate it accordingly. The Spodek Law Group, with its expertise in federal compliance and defense, is actively representing clients nationwide during the COVID-19 crisis. If you are under investigation or facing charges from the DOJ for PPP loan fraud, you do not have time to waste.
At the Spodek Law Group, we will vigorously protect your rights and work tirelessly to build your defense. Our team includes highly-experienced federal defense lawyers who have successfully represented clients in PPP loan fraud investigations, grand jury proceedings, pre-trial proceedings, and trials. We are dedicated to providing the possible defense for you and your company.
Facing a DOJ investigation for PPP loan fraud is a harrowing experience, with the potential to cause lasting damage to your business and reputation. At the Spodek Law Group, we understand the gravity of the situation and are committed to providing you with the support, guidance, and legal representation you need to effectively confront these allegations.
Our team will work closely with you to assess your situation, identify potential defenses, and develop a comprehensive strategy to protect your rights and interests. Whether you are facing allegations of fraud, navigating a complex investigation, or seeking assistance in understanding and complying with PPP loan requirements, our experienced attorneys are here to help.
If you or your company is facing a DOJ investigation or charges for PPP loan fraud, don’t wait to seek legal representation. The sooner you take action and engage the services of a knowledgeable and experienced federal defense attorney, the better your chances of achieving a favorable outcome.
The Spodek Law Group is prepared to provide the aggressive and effective representation you need to defend against PPP loan fraud allegations. Contact us today for a confidential consultation to discuss your case and explore your options. Let us help you protect your business, your reputation, and your future.
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