What You Need To Know About Paycheck Protection Program Fraud
Misuse and abuse of the Paycheck Protection Program (PPP) has been referred to as one of the biggest scams in the history of the United States, with billions of intended Covid relief monies lost to fraud. If you have found yourself caught up in, or accused of defrauding the PPP, Newport Beach attorney Mark Frederick can help. The Law Offices of Mark W. Fredrick is a premier criminal defense firm, representing clients in Orange County and throughout the state of California.
What Is The Paycheck Protection Program?
The Paycheck Protection Program (PPP) was created to provide small businesses with financial assistance, to make sure they could:
- Maintain payroll, including benefits
- Rehire employees who had previously been laid off
- Cover other related overhead expenses like rent and utilities.
Established by the CARES (Coronavirus Aid, Relief, and Economic Security) Act, the PPP is managed by the Small Business Administration with assistance from the U.S. Department of the Treasury.
How Was The PPP Defrauded?
With minimal checks to ensure that the money intended for small businesses was getting to the right people at the right time, Covid relief funds were easy to exploit. The PPP authorized banks and financial institutions to issue loans, backed by the government. These loans would then be intended for forgiveness, with millions of these loans already forgiven. Borrowers abused and scammed the government by inflating the number of employees or creating new companies altogether.
Consequences Of PPP Fraud
Fraudulent behavior and PPP scams fall under federal jurisdiction and can be charged under the following crimes:
- Bank fraud
- Wire fraud
- Mail fraud
- Making false statements to a bank or financial institution
- Conspiracy to defraud the government
Criminal penalties arising from a federal fraud conviction include thousands of dollars in fines and prison sentences that can be as high as 30 years. Even if you never received PPP funds, you can still face the same criminal penalties that you would receive if the alleged scam had been successful.
If you are facing federal fraud charges, do not leave your fate in the wrong hands. Law Offices of Mark W. Fredrick’s founding attorney has been successfully and aggressively defending clients facing criminal charges, including white collar and financial crimes and major felony federal crimes for decades.
Facing Federal Fraud Charges? Call Now.
Federal criminal charges involving financial and fraudulent activity are serious. Call today at 949-783-8884 or send an email through our online form to schedule a free, initial, no-obligation consultation.