PPP Loan Fraud
A Boutique Law Firm That Produces ResultsColorado PPP Loan Fraud Attorneys
Defending Against Allegations of Payment Protection Program Violations
The Payment Protection Program was created in 2020 to help struggling businesses during the coronavirus pandemic. Eligible companies could apply for and receive funds for certain expenses. These loans were attractive to many because of their low interest rate and the possibility of them being forgiven. Unfortunately, not all who applied for them did so honestly. Recently, cases have surfaced where individuals allegedly submitted false applications or misused funds. As a result, the U.S. government has been cracking down on PPP fraud, charging alleged violators with a range of federal crimes.
At Cantafio & Song PLLC, our Colorado PPP loan fraud lawyers provide zealous advocacy to those accused of serious offenses. Our highly experienced team is intimately familiar with the federal judicial system and knows how to develop strategic legal defenses for our clients. We put in the hard work and effort necessary to pursue just outcomes.
Speak with us about your case during a free consultation by calling (888) 458-0991 or submitting an online contact form today.
Defending You and Your Assets
At Cantafio & Song PLLC, our Colorado team is experienced at achieving special results for clients targeted by the federal government for alleged PPP loan violations. We can assist you in understanding the intricacies of this area by zealously combatting issues such as federal charges, civil forfeiture, and unfair plea bargains.
We have attorneys on staff with years of experience handling federal cases and can help you fight against allegations threatening your freedom and assets.
Our top-rated firm is here to provide the legal representation you need. Contact us at (888) 458-0991 today.
What Is PPP Loan Fraud?
The United States Small Business Administration disbursed Payment Protection Program loans, also known as PPP loans, in 2020 as a response to the COVID-19 pandemic. The PPP was a business loan program established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to assist companies with business-related expenses.
Funds could be used for:
- Payroll
- Mortgage interests
- Rent
- Utilities
- Healthcare benefits
- Fixed debt payments
The loans were offered with a low percentage rate, and some could be forgiven if a portion of the proceeds were used for payroll within a specified period.
Due to the wide accessibility of receiving PPP funds, many individuals applied, but some have been accused of defrauding the government, either through falsifying information on the loan application or using the funds for something other than business-related expenses.
Examples of acts considered PPP loan fraud include:
- Unlawfully receiving loans through misrepresentation, such as:
- Fraudulently inflating the number of employees
- Listing non-existent businesses
- Claiming higher payroll expenses
- Misrepresenting the intended use of the loan
- Applying for the loan under someone else's name
- Misusing the funds by engaging in acts like:
- Gambling
- Purchasing real estate or personal property
- Making personal investments
- Writing fraudulent payroll checks
Why Should You Seek Legal Aid for PPP Loan Fraud Allegations?
Individuals who falsified information on PPP loan applications or used funds for non-business-related expenses are now being charged with various crimes. The Biden Administration has sworn to crack down on PPP loan fraud, passing the PPP and Bank Fraud Enforcement Act and the COVID-19 Economic Injury Disaster Loan (EIDL) Fraud Statute of Limitations Act, which created a 10-year statute of limitations for PPP and EIDL loan fraud.
More and more individuals are now being charged with crimes related to PPP loan fraud, causing them to face astronomical fines and even imprisonment.
Criminal allegations against these individuals include:
- Aggravated identity theft: Using someone else’s information to apply for a PPP loan. The punishment is an additional 2 years tacked onto the sentence for the primary offense.
- Bank fraud: Submitting a fraudulent PPP application to a financial institution. The offense is penalized by up to 30 years of imprisonment.
- Conspiracy: Making a plan with one or more people to defraud the U.S. government. The penalties include imprisonment for no more than 5 years.
- False statements: Inputting false information or concealing details on a PPP loan application, knowing the material would be relied on to approve the loan. A conviction can result in up to 5 years of imprisonment.
- Money laundering: Concealing falsely obtained PPP funds through a series of transactions. It is punishable by imprisonment for not more than 20 years.
- Wire fraud: Using electronic means to submit a PPP application. Potential punishments include a maximum of 20 years in prison.
The complexities surrounding this area of criminal law make it imperative that individuals facing PPP loan fraud charges seek adequate legal representation.
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