Paycheck Protection Program (PPP) Fraud

Paycheck Protection Program (PPP) Fraud cases have been on the rise since its inception as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

 

As investigations into fraudulent claims continue to unfold, individuals charged with PPP fraud need the help of skilled criminal defense attorneys to protect their rights and ensure a fair trial.

 

Defending PPP Fraud

 

If someone is found guilty of either of these criminal activities, he or she can face severe penalties of up to 30 years in prison and up to $1,000,000 in fines. This makes it imperative to have the best defense possible to mitigate these penalties. 

 

Common defense strategies include:

 

Challenging the Government’s Evidence

 

We may argue that there is insufficient evidence to establish a client’s guilt beyond a reasonable doubt or point out inconsistencies in the paperwork provided by the government.

 

By scrutinizing every piece of evidence, including financial records, bank statements, and application materials, defendants aim to create doubts about their alleged wrongdoing before a judge or jury.

 

Lack of Intent or Knowledge

 

Many small business owners were thrust into unprecedented circumstances with the economic fallout caused by the pandemic, and they were desperate to save their enterprises from sinking. In many cases, these entrepreneurs had limited knowledge about government loan programs and relied on consultants or advisors who may have misled them unintentionally.

 

Further, to be eligible for forgiveness, applicants needed to navigate a maze of guidelines and regulations that even experienced professionals found confusing at times. For small business owners already struggling to stay afloat, dedicating extensive time and resources to fully comprehend every intricate detail may have been an unfeasible task.

 

In some instances, mistakes made during this arduous process could have inadvertently resulted in fraudulent claims without the applicant’s awareness.

 

Good Faith Defense

 

If a client believes that they applied for and used PPP loan funds for a legitimate reason, we can also emphasize their sincere belief that they were eligible for PPP loans despite any irregularities discovered later on.

 

We can argue that our clients relied on advice from professionals, such as accountants or legal experts, who assured them they met all necessary criteria and requirements for obtaining these funds.

 

Related: SBA EIBL Loan Fraud 

 

An SBA EIDL (Economic Injury Disaster Loan) is a loan program offered by the U.S. Small Business Administration (SBA) to provide financial assistance to businesses affected by disasters or economic downturns.

 

The consequences of an SBA EIDL loan fraud conviction can be severe, ranging from hefty fines to imprisonment. It is essential for individuals accused of these crimes to consult experienced attorneys specializing in white-collar defense like our team at Stechschulte Nell Law.

 

We have an in-depth understanding of complex financial offenses and can help the accused navigate through voluminous evidence and intricacies associated with SBA or PPP loans.

 

 

Hire an Attorney

 

It is crucial to remember that each case can have unique circumstances and demands tailored defense strategies accordingly. Seeking legal advice from an experienced attorney who specializes in white-collar crime can help individuals navigate through these complex allegations and build strong defenses against PPP loan fraud charges.

 

If you or someone you know has been charged with PPP loan fraud, contact us immediately. This is a serious matter and you need a certified criminal defense attorney who practices in the federal court system to best represent your interests.

Florida PPP Loan Fraud FAQ

The Paycheck Protection Program (PPP) was a lifeline for many businesses during the COVID-19 pandemic. Yet, with its rapid implementation came widespread allegations of fraud. For those facing accusations, the stakes couldn’t be higher. As Florida PPP loan fraud cases increase, we want to clarify what’s at risk and how individuals can protect their rights.

At Stechschulte Nell, we’ve seen firsthand how these accusations can affect lives. As a Tampa criminal defense lawyer, Ben Stechschulte—a former criminal prosecutor and board-certified defense attorney—brings unparalleled insight to these cases. Let’s break down some of the most pressing questions about PPP loan fraud.

Who Can Be Accused Of PPP Loan Fraud?

PPP loan fraud allegations can impact business owners, employees, and even consultants. The program was designed to provide emergency funding to keep businesses afloat, but mistakes in applications or misuse of funds can trigger criminal investigations.

For example, if someone claimed inflated payroll expenses or submitted falsified documents to secure higher loan amounts, federal agencies like the Department of Justice (DOJ) or Small Business Administration (SBA) might investigate. Even an honest mistake can look like fraud under scrutiny, which is why having strong legal representation matters.

What Constitutes PPP Loan Fraud?

PPP loan fraud encompasses several types of misconduct:

1. False Claims: Submitting inaccurate information on loan applications.
2. Misuse of Funds: Using loan money for unapproved expenses, such as personal purchases.
3. Multiple Applications: Applying for multiple PPP loans for the same business through different financial institutions.
4. Identity Theft: Using stolen identities to apply for loans.

Each of these acts can carry severe PPP loan fraud penalties, including imprisonment and hefty fines. Federal investigators don’t take these cases lightly, often using detailed audits to uncover discrepancies.

Why Are Florida Cases Increasing?

Florida has seen a rise in PPP loan fraud cases, partly because of the state’s high number of small businesses. In the rush to secure funding, many entrepreneurs unknowingly made errors on their applications. Others were misled by third-party advisors promising quick approvals without emphasizing compliance.

Unfortunately, the government often treats all irregularities as intentional acts of fraud. This is where we come in—to help distinguish between deliberate misconduct and honest mistakes.

How Do We Defend Against PPP Loan Fraud Charges?

When accusations arise, the key is building a strong defense. At Stechschulte Nell, we focus on several strategies:

• Examining Evidence: We meticulously analyze financial records, loan applications, and communication with advisors. Often, inconsistencies in the government’s evidence can create reasonable doubt.
• Proving Lack of Intent: Many clients genuinely believed they were following program guidelines. Demonstrating this good faith can be a powerful defense.
• Highlighting External Misguidance: If accountants or consultants provided misleading advice, it’s essential to show how this contributed to any errors.

What Are The Consequences Of A Conviction?

A conviction for PPP loan fraud can result in up to 30 years in prison and fines reaching $1 million. Beyond legal penalties, there’s reputational damage and financial hardship. That’s why it’s critical to act swiftly and partner with a defense team that understands both the legal landscape and your personal story.

If you’re facing accusations of Florida PPP loan fraud, don’t wait. The sooner we begin preparing your defense, the better your chances of a favorable outcome. At Stechschulte Nell, we combine professional skill with personal commitment to ensure you receive the best possible representation.

Call us today for a free consultation. Let us help you stop a bad situation from derailing your life. Your future deserves more than fear and uncertainty—it deserves a strong defense.