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Articles Tagged with PPP Loan Fraud

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When the PPP program was first created, it was meant to assist business left struggling by the Covid-19 pandemic.  One of the key provisions of the program, was that the Small Business Administration (SBA) would guarantee the loan which meant that borrowers could secure loans more easily.  As mentioned in a previous blog, the government in the spring of 2020 started to go after the most egregious and problematic PPP loan applications and payments and really ramped up prosecutions.

But now, the DOJ, IRS, SEC etc are shifting their focus to more complex investigations.  We have clients where the government is scrutinizing every aspect of the loan application such as 

-was the box checked stating that you only had one entity

The Department of Justice just announced that U.S. Attorney General Merrick B. Garland created COVID-19 Fraud Enforcement Task Force to enhance enforcement efforts against COVID-19 related fraud.

Cases have included:

  • Offers to purchase COVID-19 vaccination cards

PPP Loan Fraud -NEWEST DEVELOPMENTS
As we continue to see in the news, many cases are being charged by the Department of Justice for PPP (Payroll Protection Program) issues.  There continues to be a lot of confusion out there over the Paycheck Protection Program (PPP). Understandable since information continues to change about how to apply, whether to apply for forgiveness, and the second round of PPP loans being rolled out.  Due to the rules and the program itself changing frequently, it is important to not fall under scrutiny by the DOJ.
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The Department of Justice (DOJ) has already charged and convicted many cases of PPP loan fraud.  But, the purpose of this post is that, recently, the DOJ announced the first (publicized) civil settlement resolving PPP loan fraud allegations against a company and its owner.   The owner and SlideBelts, Inc  was required to pay a $100k civil penalty per FIRREA civil penalty provision 12 USC 1833a and the False Claims Act (FCA) 31 USC 3729 in the Eastern District of California.  The DOJ continues to be aggressive and swift in bringing criminal charges, but, this is the first public civil settlement.  Please see  https://www.justice.gov/usao-edca/press-release/file/1352931/download to read it in its entirety.
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