If you are a small business owner who has been accused of SBA (Small Business Administration) loan fraud, don’t panic. Whether you’re facing allegations of false statements, inflated invoices, or any other form of fraudulent activity, we have the expertise and knowledge to guide you through the legal maze and protect your reputation.
Here, our experienced lawyers at Stechschulte Nell Law will share the essential steps to successfully defend yourself against these charges.
What is SBA Loan Fraud?
SBA loan fraud refers to the deception or dishonesty (whether intentional or unintentional) committed by individuals or businesses during the application process for loans backed by the Small Business Administration (SBA).
Engaging in SBA loan fraud is a serious offense and can lead to severe consequences.
This type of fraud can take various forms, such as:
- Providing false documentation
- Inflating financial statements
- Misrepresenting ownership or purpose of the business.
If convicted, individuals may face hefty fines, imprisonment, or both.
Penalties for SBA Loan Fraud
Penalties for Small Business Administration loan fraud include:
- Making False Statements to the SBA (18 U.S.C.§ 1014): Up to $1 million in fines and 30 years of federal prison.
- Making False Statements to an FDIC-Insured Bank (18 U.S.C.§ 1014): Up to $1 million in fines and 30 years of federal prison.
- Bank Fraud (18 U.S.C. § 1344): Up to $1 million in fines and 30 years of federal prison.
- Wire Fraud (18 U.S.C. § 1343): Statutory fines and up to 20 years in federal prison.
- Aggravated Identity Theft (18 U.S.C. § 1028A): Up to two years of additional prison time.
- Making False Statements to Federal Agents (18 U.S.C. § 100): Statutory fines and up to five years in federal prison.
- Conspiracy (18 U.S.C. § 371 & 18 U.S.C. § 1349): Statutory fines and up to five years in federal prison.
- False Claims Act Violations (31 U.S.C. §§ 3729): Statutory fines and up to five years in federal prison.
Read More > False Claims Act & PPP Loan Fraud
Defending SBA Loan Fraud
To successfully defend against SBA loan fraud charges, criminal defense attorneys must utilize a variety of strategies.
These may include:
- Challenging evidence presented by prosecutors
- Proving a lack of intent or knowledge about fraudulent activities
- Questioning witnesses under cross-examination to identify inconsistencies in their testimonies
- Leveraging any procedural errors that may have occurred during the investigation or trial process
Proving Lack of Intent
To secure a conviction, prosecutors must prove that you intentionally made false statements or omissions to obtain an SBA loan. By demonstrating that there was no fraudulent intent or that any misstatements were unintentional or innocent mistakes, your defense attorney may be able to undermine the prosecution’s case.
Questioning Witness Testimony
Prosecutors often rely on bank officers, loan officers, and other financial experts as witnesses in SBA loan fraud cases. Your lawyer will carefully scrutinize their qualifications, backgrounds, and motives for testifying against you. Challenging their expertise or presenting evidence that they may have ulterior motives for providing incriminating testimony can cast doubt on their credibility and weaken the prosecution’s case significantly.
With skilled criminal defense counsel by your side implementing these defensive strategies meticulously, you will increase your chances of securing a favorable outcome.
The Signs of an SBA Loan Investigation
Several signs might indicate you’re under investigation including:
Frozen Assets
If you suddenly find yourself unable to access your bank accounts or property, it could mean that law enforcement agencies have initiated a probe into your financial activities.
Bank Inquiries
If your bank contacts you asking for details about specific transactions or irregularities in your account activity, it’s likely they have been subpoenaed and are cooperating with investigators.
Contact from Federal Agencies
Receiving a call or visit from the FBI, Department of Justice (DOJ), or other federal law enforcement agencies should not be taken lightly.
Subpoenas or Warrants
Subpoenas or warrants being issued against you can indicate serious trouble ahead. These legal documents allow authorities to gather evidence against individuals suspected of committing fraud and often mark the beginning of legal proceedings against them.
Target Letters
If you receive a target letter from the government notifying you that they are looking into your financial activities, this means that you are under investigation. This letter typically outlines the alleged misconduct and informs you of your rights during the investigation process.
Audits & Reviews
Facing an audit by government entities such as the Small Business Administration itself could signal investigative efforts into potential wrongdoing concerning SBA loans specifically. An audit examines financial records and operations thoroughly to uncover any discrepancies, thereby assessing the compliance levels of borrowers with loan terms and conditions set by the SBA.
Remember, a loan fraud accusation is NOT a situation where you should try to handle things on your own. Seek legal counsel from a criminal defense lawyer who can guide you through the investigation process and protect your interests.
From Accused to Acquitted
Being under investigation for SBA loan fraud is a serious matter that requires knowledgeable legal representation. At Stechschulte Nell Law, our experienced attorneys understand the complexities of these white-collar cases and are committed to protecting your rights and advocating for your best interests.
We have a proven track record of success in defending clients facing similar allegations, and we will work tirelessly to build a strong defense strategy on your behalf.
Don’t face this daunting situation alone—reach out to our dedicated team today at 813-280-1244 for a confidential consultation. Your future could depend on it.
