PPP Loan Fraud Criminal Defense Attorney
The SBA Office of Inspector General, the US Department of Justice, and other federal agencies are actively pursuing investigations to uncover PPP loan fraud. Many of these investigations result in criminal charges.
“What is a PPP loan?”
The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) is a forgivable loan program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP loans help eligible borrowers affected by the COVID-19 pandemic keep their employees on the payroll. Small businesses and self-employed taxpayers may apply for forgivable loans to cover payroll and other eligible expenses such as rent and utilities. To avoid the risk of federal criminal charges, you need to ensure your application contains truthful statements.
Do not make false statements on the PPP Application Form to Avoid Federal Criminal Charges.
The application requires the applicant to provide information. For example, to obtain a loan, you must name all owners who own 20% or more equity in the company, including payroll costs and the number of employees.
False statements or fraudulent conduct in submitting a PPP loan can subject you to significant federal criminal liability. The PPP application requires you to certify the application and expressly indicates you can be penalized for “knowingly making a false statement to obtain a guaranteed loan from SBA” and knowingly using the funds for illegitimate purposes.
To avoid federal criminal charges when applying for a PPP loan, you should avoid the following acts:
- Misrepresenting a company’s payroll;
- Misrepresenting the number of employees;
- Misrepresenting a company’s payroll costs to obtain additional PPP loan funds;
- Obtaining multiple PPP loans from multiple SBA lenders;
- Using PPP loan funds for ineligible business purposes; or
- Falsely certifying that a company has complied with the terms of the PPP.
Numerous federal laws are broad enough to encompass fraudulent practices in obtaining a PPP loan that make it difficult to avoid federal criminal charges, including but not limited to the following:
- Making False Statements to Federal Agents (18 USC §1001);
- Making False Statements to the Small Business Administration (15 USC §645);
- Making False Statements to a Financial Institution (18 USC §1014);
- Wire Fraud (18 USC §1343); or
- Conspiracy (18 USC §1349).
False Allegations of PPP Loan Fraud
Law enforcement can misinterpret inadvertent or careless clerical mistakes in PPP loan applications as intentional misrepresentations. State and federal investigators are seemingly on a mission to find and prosecute people for fraud cases. Unfortunately, overzealous police officers and special agents often seek to build cases, not find the truth. When a person is falsely accused of fraud, including PPP loan application fraud, it is essential that they have a reputable, veteran defense lawyer protecting and defending them. In many cases, a savvy defense lawyer can help a client avoid charges, so they do not have to go to the United States District Court for the Eastern District of Michigan.
Government and Public Fraud Defense – How to Avoid Federal Criminal Charges
Federal prosecutors aggressively pursue individuals and organizations they suspect of defrauding the government. These cases often involve allegations of misusing public funds, falsifying documents, bribery, or making false statements to federal agencies. Many defendants had no criminal intent and got caught up in bureaucratic red tape or complex regulations. The best way to avoid charges is to act carefully, stay informed, and seek legal guidance early.
Here are some critical steps to reduce the risk of facing federal charges:
- Stay compliant with all federal reporting and regulatory requirements. Even minor errors or omissions can trigger a criminal investigation.
- Never falsify documents, invoices, or certifications—even under pressure. A shortcut can quickly turn into a federal offense.
- Avoid making statements to investigators or agents without counsel. What seems like a harmless answer can later be used as evidence.
- Train employees and business partners to follow ethical practices and report concerns internally. A single rogue actor can create criminal liability for others.
Maintain accurate, detailed records of all government-related transactions, including grants, loans, contracts, and reimbursements.
The best protection is a proactive legal strategy. If you believe you’re under investigation or fear that a mistake could lead to charges, consult with an experienced federal criminal defense lawyer right away. The earlier a qualified attorney gets involved, the greater the chances of avoiding an indictment or securing a favorable resolution.
At LEWIS & DICKSTEIN, P.L.L.C., we know how to protect clients facing public corruption or fraud allegations. We step in early, control the narrative, and fight to keep investigations from turning into formal charges.
Experienced and Effective PPP Loan Fraud Criminal Defense Attorneys
The lawyers with LEWIS & DICKSTEIN, P.L.L.C. have decades of experience and a track record of consistently and reliably defending PPP loan fraud cases. If you have questions about avoiding federal criminal charges when applying for a PPP loan or believe you may be at risk for a PPP fraud federal indictment, do not wait to seek legal guidance. If you call us for a free consultation, we will take the time to speak with you, ensure your case is handled correctly from the start, and work with you to achieve the most favorable outcome in your case. We will find a way to help you.
Call us today at (248) 263-6800 for a free consultation, or complete a Request for Assistance Form, and we will contact you promptly.
