PPP Loan Fraud Attorney

The Paycheck Protection Program (PPP) prevented many businesses from going under during the pandemic. However, the authorities are now aggressively investigating any individual or company that it suspects of misusing PPP loan funds.

Myron Watson Attorney at Law will protect your rights if you face an investigation or arrest related to PPP loan fraud. Based in Cleveland, we bring a plethora of criminal defense knowledge and experience to our practice. Founded by an award-winning defense attorney, our PPP loan fraud lawyers do everything in our power to protect clients’ rights against charges of fraud, theft and more.

What To Know About PPP Fraud

1. Definition of PPP Fraud:
   • PPP (Paycheck Protection Program) fraud involves falsely obtaining or misusing PPP funds intended to help businesses during the COVID-19 pandemic.
2. Common Types of PPP Fraud:
   • False information on PPP loan applications (e.g., inflating payroll numbers).
   • Misuse of funds for non-business-related expenses.
   • Multiple loan applications to different lenders.
   • Fake businesses created to apply for funds.
3. Penalties for PPP Fraud:
   • Severe fines, restitution of funds, and imprisonment.
   • Potential charges include bank fraud, wire fraud, and making false statements to financial institutions.
4. Red Flags for Detection:
   • Sudden increases in payroll expenses.
   • Inconsistencies between PPP application information and tax records.
   • Unusual banking activity following loan disbursement.
5. Investigating Agencies:
   • The Small Business Administration (SBA) Office of Inspector General.
   • The Federal Bureau of Investigation (FBI).
   • The Department of Justice (DOJ).
6. Legal Consequences:
   • Convictions can result in lengthy prison sentences.
   • Heavy financial penalties and asset forfeiture.
7. Preventative Measures:
   • Accurate and honest reporting on loan applications.
   • Proper documentation and tracking of how funds are used.
   • Regular audits and compliance checks within the business.
8. Seeking Legal Help:
   • If accused of PPP fraud, it’s crucial to seek experienced legal representation.
   • A qualified attorney can help navigate investigations and defend against charges.
9. Reporting Suspected Fraud:
   • Suspected PPP fraud can be reported to the SBA OIG Hotline or other relevant authorities.
10. Impact on Businesses:
    • Fraudulent activities can lead to business closures and loss of reputation.
    • Legitimate businesses may face increased scrutiny and compliance requirements.

Understanding the seriousness of PPP fraud and adhering to legal and ethical standards is essential for business owners. If facing accusations, prompt legal assistance is critical.

The PPP is a loan program backed by the federal government that allowed employers to pay their staff and cover certain other costs during the recent COVID-19 pandemic. Using the funds from a PPP loan to pay for anything other than the federally approved expenses is a form of fraud.

The Small Business Administration is even auditing any business that received a loan of $2 million or more. Even if a well-intentioned individual did not realize that they misused funds, they could face federal charges and serious criminal penalties, including jail time.

Save Your Business And Your Future

A conviction for a white collar charge can have many more consequences than you realize. In addition to penalties such as probation, community service and incarceration. A criminal conviction – or even just a charge – can damage your reputation, placing your business in jeopardy. To protect your freedom and your company, consult a PPP loan fraud lawyer immediately.