The Coronavirus Aid Relief and Economic Security Act (CARES Act) was passed by congress in March 2020. The $2.2 trillion economic relief bill aimed at providing emergency financial assistance to Americans in response to the COVID-19 pandemic. The Paycheck Protection Program (PPP) was also established through the CARES Act, among other relief legislations.

Sadly, the federal government reports that much of the PPP fund was misappropriated, and many businesses are under investigation for federal PPP loan fraud. A South Florida criminal defense attorney can defend you against the charges if you have been accused of loan fraud.

What is PPP Loan Fraud?

PPP loan fraud refers to instances of businesses:

  • Making false statements on their PPP loan, which could be anything as using forged information to obtain a loan
  • Misusing the funds from the PPP loan by using the money for something else different from the initially intended use

Upon submitting a loan application with your signature appended, you took responsibility for the actual accuracy of the information on the application form. The lender also assumed that you were diligent in preparing the application.

If the loan processor found numerous or significant errors upon verification, concerns about possible loan fraud could arise. Talk to a PPP Loan Fraud lawyer in Miami if you’re worried you could be found guilty of PPP loan fraud. 

Who Conducts PPP Loan Fraud Investigations?

Typically, PPP loan fraud investigations fall into the docket of federal prosecutors and criminal investigators deployed by various federal agencies. They aim to uncover the misappropriation of money obtained from COVID-19 relief programs that were the federal government’s initiative.

That’s to say, PPP loan fraud is a federal crime that attracts severe criminal and civil penalties. A PPP loan fraud attorney in Miami can defend you against the charges brought against you by the federal prosecutor.

Why Is PPP Loan Fraud Serious?

The government gave out PPP funds during a crisis to cushion businesses from the adverse impact, but some people didn’t use the money for the intended purpose. The federal government is out to punish anyone found to have taken advantage of the situation. Three reasons why the cases are severe are:

  • The first round of PPP loans created room for fraudulent applications: Most fraudulent applications were approved in the first round due to a lack of oversight 
  • PPP loan fraud is a federal crime without parole: As a federal crime, the investigators have the full weight of the federal government and will use agencies like the FBI and U.S Postal Inspection service to investigate businesses thoroughly, putting suspects under a lot of scrutiny
  • PPP loan fraud can happen in multiple ways: Investigators are looking at numerous ways in which suspects may have committed PPP loan fraud. 

What are the Federal Consequences of PPP Loan Fraud?

The federal Department of Justice announced an update on criminal and civil enforcement efforts to fight COVID-19-related fraud, including PPP loan fraud. The impact of this initiative sends a clear and unmistakable message to those who would consider exploiting a national emergency to misappropriate taxpayers’ resources.

Federal Statutes Applicable in PPP Loan Fraud Prosecution

While the CARES Act is not a penal statute and has no provisions that authorize criminal enforcement, prosecution of PPP loan fraud is still possible.

The Department of Justice relies on pre-existing laws to prosecute pandemic-related fraud, for example, statutes related to:

  • Bank fraud (18 USC Section 1344)
  • Conspiracy to defraud the government (18 USC § 1349)
  • Identity theft
  • Wire fraud (8 USC § 1343)
  • Tax evasion
  • False statements and claims to federal agents, financial institutions, or the Small Business Association (18 USC § 1014)
  • Money laundering

Potential Penalties

A PPP loan fraud conviction based on these statutes could earn you the following:

  • Permanent loss of the right to vote
  • Being barred from other federal programs or assistance
  • Loss of professional or business licenses
  • Being banned from government employment or elective positions

Besides, you could face hefty fines or be required to repay the entire PPP loan amount you received. You also risk getting a federal prison sentence or being forced to forfeit your personal assets. A South Florida criminal defense lawyer can aggressively fight for your rights to protect your freedom and future. 

What Are the Possible Defenses to PPP Loan Fraud?

An experienced PPP loan fraud attorney in Miami can actively explore various defense options to help you have the charges reduced or dropped altogether.

These include:

  • Lack of fraudulent intent: For your actions to amount to PPP loan fraud, you must have intended to use subterfuge, trickery, or deception to get federal funds. The jury may consider carelessness, negligence, or accidents as possible defenses.
  • Human error: You can argue that you made a genuine mistake in the application 
  • Deception: You can claim that you were deceived into believing you were eligible to apply for the benefits of the loan 
  • Illegal search: Your lawyer can help you investigate if federal agents violated your Fourth Amendment rights by conducting an investigation without a warrant or obtaining evidence illegally.
  • Coercion: You may claim that you were forced to participate in applying for the funds fraudulently 
  • Correct disclosure: You did not commit fraud if you disclosed your intention for the funds since the bank ultimately funded you 

Don’t remain quiet if you’re arrested and charged with PPP loan fraud. Contact experienced fraud defense lawyers in Miami as soon as possible so that they can start building your defense for a favorable case outcome. –

Defend Your Rights Today in a PPP Loan Fraud Investigation

If you’re a PPP loan fraud investigation target, you may want to avoid talking to any law enforcement officer or government employee about the situation. Instead, hire an experienced PPP loan fraud lawyer in Florida to communicate with the officers on your behalf.

There is hope for your case if you work with an aggressive lawyer with experience in federal criminal cases. Our Miami criminal defense law firm hosts attorneys with years of experience defending clients against loan fraud charges, and we can represent you too. Contact us to schedule a FREE in-depth case assessment.