Experienced White Collar Crime Attorneys
The Law Offices of Ryan Garry, L.L.C. represents individuals and businesses with all aspects of White Collar Crime, including investigations and prosecutions into the Paycheck Protection Program fraud (PPP Loan Fraud).
Authorities are now threatening prosecution of those businesses and individuals that submitted and received Cares, Act. PPP loan proceeds in violation of the terms on the application. The Paycheck Protection Program (“PPP”) is a federal loan designed to provide an incentive for small businesses to keep their employees employed during the COVID 19 pandemic. If all employees are kept on the payroll for 8 weeks and the money is used for proper business expenses (payroll, rent, mortgage interest, utilities), then the loan will be forgiven. Certain small businesses as well as certain other businesses and other independent workers can apply if they are affected by COVID-19 (coronavirus). See here (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program) for more information about the PPP.
Did Your Company Receive a PPP Loan over $2 Million while seeking Loan Forgiveness?
Companies that obtained the federal PPP loan by fraud will be prosecuted, including public companies and other wealthy borrowers. Apparently, any borrower who received over $2 million and seeks loan forgiveness will be audited by the federal government. These companies may face criminal liability if they falsely certified that the loan was necessary. However, companies can return the loan by May 14, 2020 to escape any such liability. See https://www.forbes.com/sites/jasonbfreeman/2020/05/06/ppp-borrowers-and-false-certifications-last-call-for-sba-amnesty-under-safe-harbor/#2fba44b83e99. Criminal investigations by the United States Attorney’s Office are likely, including investigations on bank fraud and wire fraud.
Federal Investigations Related to SBA Loan Fraud
Federal prosecutions have already started. Two businessmen were recently charged with Payment Protection Program fraud (or PPP loan fraud). See:https://www.usatoday.com/story/news/politics/2020/05/05/coronavirus-first-fraud-case-involving-ppp-small-business-program/3085676001/, https://www.justice.gov/opa/pr/two-charged-rhode-island-stimulus-fraud. It is alleged that they lied on bank applications for the loans and received more than $500,000 to pay employees at businesses that were fictitious, closed, or owned by someone else. One is charged with aggravated identity theft, the other with bank fraud, and both with conspiracy. https://www.justice.gov/opa/pr/two-charged-rhode-island-stimulus-fraud
We expect to see many more federal investigations and prosecutions related to PPP loan fraud or SBA loan fraud. See https://www.wsj.com/articles/justice-department-eyes-fraud-in-lending-program-for-small-businesses-hit-by-coronavirus-crisis-11588716487. Charges could include Bank Fraud, in violation of 18 U.S.C. § 1344, False Statement to the Small Business Association (SBA Fraud), in violation of 18 U.S.C. § 1014, and other conspiracy related charges.
Contact Us Today for a Free Legal Consultation
If you are in need of legal counsel to assist you and or your business with white collar crime investigations or charges, call Ryan Garry at the Law Offices of Ryan Garry, LLC in Minneapolis, MN.