Raleigh Federal PPP Loan Fraud Lawyer

Raleigh Federal PPP Loan Fraud Attorney

The federal Paycheck Protection Program (PPP) was an initiative designed to help provide additional financial relief during the COVID-19 pandemic. The program has since ended, but some borrowers may qualify for PPP loan forgiveness. There are also those who may have committed PPP loan fraud in an attempt to game the system. If you are accused of PPP loan fraud, you should speak with a skilled Raleigh federal PPP loan fraud lawyer for assistance.

The legal team at the W. James Payne Law Firm knows how difficult it can be to be accused of fraudulent behavior of any kind. Sometimes the accusation can be enough to cause irreparable damage to your professional relationship and even affect your social standing. Facing allegations of PPP loan fraud can be enough to cause permanent damage to your reputation as a businessman or as an individual simply trying to wade through PPP complexities. A lawyer can help you.

What Exactly Is PPP Loan Fraud?

In 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. The primary purpose of this act was to provide significant economic relief for small businesses during the pandemic through a program called the Paycheck Protection Program (PPP). Throughout the use of this program, which ended in 2021, there have been many instances of fraud perpetrated by individuals and businesses alike. It is estimated that at least 70,000 loans were potentially fraudulent.

PPP loan fraud largely refers to the overall misuse of federal and state funds obtained through the PPP program. Fraud, in this case, occurs whenever an individual or a business entity knowingly submits false information in order to secure loans for their own unauthorized purpose. It may be crucial to understand the various forms that PPP loan fraud can take. There may be instances where you unknowingly engaged in fraudulent practices, unaware of what you were doing.

This widespread fraud includes many different forms and elements of financial crimes, all of which can be considered PPP loan fraud since there technically is not an official crime known by that name. If you are ever accused of or charged with engaging in PPP loan fraud, it is imperative that you reach out to a knowledgeable PPP loan fraud attorney as soon as possible. You could face severe legal penalties that could cause irreparable damage to your future.

What Activities Are Considered Fraudulent?

There are many financial activities that may be considered fraudulent. Since there is no criminal statute called PPP loan fraud in North Carolina, prosecutors must rely on longstanding financial crime statutes to bring charges against alleged fraudsters. In this way, they can still prosecute PPP loan fraud. If you have engaged in any of these activities, even unknowingly, you should immediately reach out to a PPP loan fraud lawyer for help in building a strong defense strategy:

• False payroll records. It is illegal for any business to submit false payroll records. If you have submitted records that wrongly indicate the number of employees in your business or falsely represent the amount you have in payroll, this could be considered the basis for a PPP loan fraud case.
• Misappropriation of funds. If you applied for PPP loans during the time of the program and used them for an unauthorized purpose, that will more than likely be considered fraudulent activity. When you received PPP loans, you needed to use them for their intended purpose, not for personal expenses or as a foundation for a fraudulent business.  That could very likely be considered PPP loan fraud.
• Lying to investigators. It is a crime to lie to investigators. Since PPP loan fraud is considered a federal offense, it is investigated by federal agencies like the FBI, the IRS, and the Justice Department. If you deliberately mislead investigators in an effort to derail the investigation away from you and your activities, that will be considered a federal crime and could just make things worse for you in the long run.

Possible Charges in a PPP Loan Fraud Case

Allegations of PPP loan fraud are nothing to sneer at. If convicted, you could be facing significant penalties for financial crimes, such as significant prison time, substantial fines in the millions, and court-ordered restitution. You are going to want to hire a PPP loan fraud lawyer to help you navigate the various legal processes you may be about to endure and to provide you with consistent legal help throughout. Here are some of the possible charges you could face:

• Bank fraud. Federal statutes make it illegal to knowingly defraud a financial institution or obtain money from one under false pretenses. This would include PPP loan fraud, as PPP loans were distributed through private lenders with the help of the U.S. Small Business Administration (SBA). The misrepresentation of financial information is largely considered a crime.
• Government fraud. Since PPP loans were provided by the federal government, an attempt to participate in a PPP loan fraud scheme may be considered an attempt to defraud the federal government. A charge of government fraud could land you with 10 years in prison and a fine of up to $1 million if convicted. If you are charged with government fraud, you should immediately reach out to a defense lawyer for help.
• Wire fraud. Wire fraud occurs when you use electronic communication to submit false information or even access electronic funds in a fraudulent manner. Wire fraud is one of the most common charges associated with PPP loan fraud. Submitting a fraudulent PPP loan application online may be considered an act of wire fraud. Federal charges could result in a 20-year prison sentence if convicted.
• Tax fraud. Many business entities and individuals may be on the hook for tax fraud or tax evasion if they fraudulently obtained or used federal PPP loans. When fraudsters illegally obtain these funds, there’s a decent chance they never reported the money as part of their taxes. Tax-related charges are taken very seriously and could result in further investigation by the IRS. That could, in turn, lead to more fines and prison time.
• Conspiracy. If you collaborated with other parties, either individuals or business entities, to commit PPP loan fraud, there is a chance that the prosecution may seek to add conspiracy charges. A conspiracy occurs when you collaborate with others to commit illegal activities as a group.

FAQs

Who Handles PPP Loan Frauds?

There are many different federal agencies that handle cases of PPP loan fraud. These agencies include the Department of Justice (DOJ), the Small Business Administration (SBA), the Federal Bureau of Investigation (FBI), the Internal Revenue Service Criminal Investigations (IRS-CI), and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). All of these organizations investigate different aspects of PPP loan fraud.

Who Can You Contact to Report PPP Fraud?

If you uncover information about PPP fraud and wish to report it to the proper authorities, you should reach out to the Small Business Administration (SBA) or the Justice Department. You may also want to reach out to a securityPPP loan fraud lawyer in order to protect yourself. The authorities may be interested in how you came about this information. Even if you are not involved, having a lawyer to represent your interests can only benefit you in the long run.

Is PPP Loan Fraud a Felony?

Yes, PPP loan fraud is considered a federal felony. If you are convicted on charges related to PPP loan fraud, you could find yourself facing significant legal penalties that range from substantial prison sentences to hefty fines numbering in the millions. If you are charged with PPP loan fraud or being investigated for it, you should immediately contact a Raleigh defense lawyer who can help you start working on a strong defense strategy.

What Are the Red Flags for PPP Loan Fraud?

There are many different red flags that you may want to look out for if you are concerned that your business may be involved in PPP loan fraud. The most significant of these red flags is financial discrepancies. A business should be able to explain the source of all its revenue. If there are irregular transactions, unexplained deposits, late payments, or inflated revenue, that could all be a sign that your business is involved in PPP loan fraud. You may want to consider reporting it.

Reach Out to a PPP Loan Fraud Lawyer Today

Dealing with accusations or charges of fraud can be devastating to your professional reputation. Engaging in PPP loan fraud, even unknowingly, can have severe consequences for your financial security and your professional standing. You may not know what to do next, which is where an experienced defense lawyer comes into play.

The legal team at the W. James Payne Law Firm can provide you with the tools you need to fight the charges being made against you. The last thing you want is to be convicted of any kind of fraud charges. You may never recover from that. We can help. Contact us to speak with a valued team member about a consultation.