Miami PPP Loan Fraud Attorney

If you or a loved one is under investigation or facing prosecution for PPP loan fraud, it is critical to consult with an experienced Miami PPP loan fraud attorney as soon as possible to ensure your rights are protected. You need the counsel of a federal criminal defense attorney in Miami-Dade County who is experienced in loan fraud cases to guide you through the process and maximize your chances of resolving your case with a favorable outcome.

The Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a federal loan program administered by the Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program was created in response to the economic impact of the COVID-19 pandemic and is designed to provide financial assistance to small businesses, non-profits, veterans organizations, and other entities to help them cover operating expenses. The PPP was initially funded with $349 billion and was later increased to $669 billion. By May 31, 2021, the SBA had approved over 11 million loans totaling over $799 billion. The PPP loans were intended to help businesses pay for payroll costs and employee benefits, rent, utilities, mortgage interest, and worker protection costs related to COVID-19. If the funds were used for these purposes within a designated period of time, the loans were forgivable.  91% of these loans have been either fully or partially forgiven. According to one study, approximately 1.4 million Paycheck Protection Program (PPP) loans may be potentially fraudulent, as they exhibit signs such as unusually high payrolls or multiple businesses listed at a single residential address. 

What is PPP Loan Fraud?

The Department of Justice considers a range of activities to be PPP loan fraud, including:

  • Inflating payroll expenses to obtain larger loans than your business was eligible for
  • Reviving dormant corporations or purchasing shell companies to obtain multiple loans.
  • Submitting identical loan applications and supporting documents using different company names.
  • Laundering the proceeds of fraudulent activity through numerous bank accounts.
  • Using loan funds for prohibited purposes, such as purchasing houses, cars, jewelry, or other luxury items.

This is just a sampling of PPP loan fraud examples. The charges you may face will depend on the specifics of your case and the evidence against you.

If you are under investigation or facing charges for PPP loan fraud, it is crucial to seek legal representation as soon as possible. David Edelstein has a wealth of experience defending clients against loan fraud charges. He is well-versed in the legal complexities of these cases and is skilled in developing solid defenses to challenge the allegations against you. He is dedicated to advocating for your rights and fighting to achieve the best possible outcome for your case.

Common Criminal Charges for PPP Loan Fraud

If you are being investigated for fraud related to the Paycheck Protection Program (PPP) loan, you could potentially be charged with various federal financial crimes. These can include:

  • Bank fraud: This crime involves fraudulently obtaining money, assets, or other property from a financial institution through false or misleading statements, misrepresentation, or deception.
  • Wire fraud: This crime involves using interstate wire communication, such as the internet or telephone, to defraud someone of money or property.
  • Disaster-relief fraud: This crime involves fraudulent activity related to disaster relief, such as fraudulently obtaining disaster relief funds or falsely claiming to be a disaster victim to receive aid.
  • Money laundering: This crime involves concealing the proceeds of illegal activity, such as drug trafficking or embezzlement, by moving the money through a series of transactions to make it appear legitimate.
  • Making false statements to a federal agent/entity: This crime involves making false statements or providing false information to a federal agent or agency, such as during an investigation or in response to a request for information.
  • Making false statements to a financial institution: This crime involves making false statements or providing false information to a financial institution, such as a bank or credit union, to obtain money, credit, or other assets.
  • Identity theft: This crime involves obtaining and using someone else’s personal information, such as their name, social security number, or date of birth, without their permission, often for the purpose of fraud or other illegal activity.

Investigations and prosecutions of individuals suspected of fraud in Paycheck Protection Program (PPP) loans have been ongoing by the Department of Justice (DOJ). In many cases of PPP loan fraud, the individuals involved took advantage of the simplified qualification and application process to submit false documents or information, use stolen identities, or create fake corporations.  Many individuals who have engaged in PPP loan fraud used the loan money for purposes outside of those allowed by the program, such as financing lavish personal expenses.

Penalties For PPP Loan Fraud

PPP loan fraud is a federal offense and can carry severe penalties if you are convicted. The specific penalties you may face will depend on the charges brought against you and the evidence against you. Some common federal financial crimes that may be charged in cases of PPP loan fraud include bank fraud, wire fraud, disaster-relief fraud, and money laundering.

The maximum penalty for bank fraud is 30 years in prison and a fine of up to $1 million. The maximum penalty for wire fraud is 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss resulting from the offense. The maximum penalty for disaster-relief fraud is 30 years in prison and a fine of up to $250,000. The maximum penalty for money laundering is five years in prison and a fine of up to $250,000 or twice the amount of the proceeds involved in the offense.

These are just a few examples of the potential penalties you may face for PPP loan fraud. Your potential penalties will depend on your case’s specific facts and circumstances. If you are being investigated or facing charges related to PPP loan fraud, it is critical to seek legal representation as soon as possible to protect your rights and defend yourself against the allegations.

Being Investigated for PPP Loan Fraud?

If you are being investigated for PPP loan fraud, it is crucial to take immediate action to protect your rights and interests. Here are a few steps you can take if you are being investigated for PPP loan fraud:

  • Seek legal representation: The first step you should take if you are being investigated for PPP loan fraud is to seek legal representation. An experienced attorney can advise you on your rights and options and help you navigate the legal process.
  • Do not speak to law enforcement without an attorney present: If you are contacted by law enforcement or any other federal agency regarding an investigation into PPP loan fraud, it is important not to speak to them without an attorney present. Anything you say to law enforcement could be used against you in court, and an attorney can help ensure your rights are protected during any interactions with law enforcement.
  • Gather and preserve any relevant documents: If you are being investigated for PPP loan fraud, it is important to gather and preserve any relevant documents, such as loan applications, financial records, and other documentation related to the loan. An attorney can help you determine what documents are relevant to your case and advise you on how to preserve them best.
  • Be honest with your attorney: It is essential, to be honest with your attorney about the details of your case and any potential defenses you may have. An attorney can only effectively represent you if they completely understand your situation.

Contact an Experienced Miami PPP Loan Fraud Lawyer

Speaking with an experienced criminal defense lawyer as soon as possible is vital if you are being investigated for PPP loan fraud. An experienced Miami PPP loan fraud lawyer can help you navigate the legal process, protect your rights, and defend yourself against the allegations. They can also help you understand the potential penalties you may face if you are criminally charged and work with you to develop the best defense strategy to challenge the allegations against you.

David Edelstein is an experienced federal criminal defense attorney with extensive experience defending clients charged with federal crimes. Over the past 25 years, he has gained a comprehensive understanding of the federal legal system and is dedicated to using his knowledge and experience to protect the rights of his clients and achieve the best possible outcomes for them. If you are facing a federal criminal investigation for PPP loan fraud, you can rely on Mr. Edelstein to provide the legal guidance and representation you need.

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