Paycheck Protection Program

The Paycheck Protection Program (PPP) was launched by the US government in 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program was designed to provide forgivable loans to small businesses affected by the COVID-19 pandemic, with the goal of helping them keep their employees on payroll and cover other expenses. While the program has been successful in many ways, it has also been subject to fraud allegations and charges brought by the United States Attorney’s Office across the county.

What is PPP Loan Fraud?

PPP loan fraud occurs when a business or individual obtains a PPP loan by providing false or misleading information on their application. This can take many forms, such as inflating the number of employees, exaggerating revenue or expenses, or creating a false business altogether.  PPP loan fraud can also occur when businesses fail to use the loan funds for their intended purpose, such as payroll or rent.

How Does PPP Loan Fraud Happen?

PPP loan fraud can happen in a variety of ways. In some cases, businesses may simply provide false information on their application in order to obtain a loan. This could include exaggerating the number of employees, revenue, or expenses, or misrepresenting the purpose of the loan. In other cases, individuals may create fake businesses in order to obtain a loan. This can involve setting up a shell company or using the name of an existing business without their knowledge. PPP loan fraud can also occur when businesses fail to use the loan funds for their intended purpose, such as payroll or rent.

If You are Charged or Threatened with PPP Fraud…

The Federal Government has taken a stringent stand on prosecuting those it determines have obtained fraudulent PPP loans.  If you are charged or threatened with PPP fraud it is important to hire an attorney or firm with experience in handling such matters.  It is possible to avoid prosecution altogether, or to obtain a reduced charge or penalty.  Make sure the attorney or law firm that you hire has extensive experience in the federal criminal arena as well as with PPP fraud charges.

At LGR Law, we are experienced federal criminal defense lawyers in New Jersey and New York.  Lorraine Gauli-Rufo and her staff have nearly 35 years of federal and state criminal law experience. We have represented and successfully defended many people charged with fraud in relation to PPP or EIDL loans. Contact LGR law at 973-239-4300 or visit our website at https://lgaulirufo.com/ for a free consultation today. We fight for your rights and protect  your freedom when you are charged or threatened with a federal or state crime.