Boston PPP - SBA - EIDL Loan Fraud Lawyers: Your Best Defense Against Federal Prosecution

The COVID-19 pandemic led to unprecedented government stimulus aimed at providing financial relief to struggling businesses and individuals. A key component was the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA). While a lifeline for many, these programs were ripe for abuse and fraud. In Boston and nationwide, federal prosecutors are aggressively pursuing PPP and EIDL fraud cases. Retaining experienced legal counsel can mean the difference between a minor sanction or serious imprisonment.

Overview of PPP and EIDL Fraud

The PPP provided low-interest private loans to small businesses, forgivable if used on eligible expenses like payroll and rent. EIDL provided low-interest disaster loans up to $2 million. With the rush to distribute funds quickly, limited oversight led to widespread fraud. Common schemes include:

Falsifying employee, revenue, and expense numbers on applications to get larger loans
Using loans for ineligible expenses like personal purchases instead of business costs
Applying for multiple loans through different lenders using fake businesses
Stealing personal information to fraudulently apply for loans in someone else's name

For example, a Boston used car dealer allegedly falsified documents to obtain $85,000 in PPP loans and $15,000 in EIDL grants.

Federal PPP and EIDL Fraud Investigations in Boston

Will PPP loan fraud be investigated?

Various federal agencies are investigating PPP and EIDL fraud cases across the country. This includes the Department of Justice (DOJ), FBI, IRS, and SBA's Office of Inspector General. In Boston, the U.S. Attorney's Office for the District of Massachusetts has been aggressively prosecuting cases.Red flags that may trigger scrutiny of your application include:

Seeking loans far above your business's real payroll expenses
Getting multiple loans for one business through different lenders
Spending funds on personal costs unrelated to business operations
Lying about number of employees, revenues, expenses on application
Defaulting on the loan instead of spending it on approved uses

Potential Federal Charges for PPP and EIDL Fraud

How to prove PPP loan fraud?

If investigators uncover intentional misrepresentations or deception, you may face severe federal criminal charges such as:

Wire fraud - Up to 30 years if scheme involves disaster relief funds
Bank fraud - Carries up to 30 years imprisonment
Aggravated identity theft - 2 years mandatory minimum prison sentence
Money laundering - Up to 20 years imprisonment
Making false statements - Up to 5 years imprisonment

The government can also impose massive civil fines and forfeit any illegally obtained loan amounts.

Why Legal Representation is Absolutely Critical

Facing criminal prosecution by the federal government is terrifying. Prosecutors have endless resources and will pursue the harshest charges to pressure you into pleading guilty. But an experienced federal defense lawyer can level the playing field. Benefits include:

Negotiating with prosecutors - We can argue weaknesses in their case and advocate for dismissal or reduced charges. Prosecutors must prove intent, difficult in complex financial cases.
Explaining the law - These financial fraud laws have nuances easy for laymen to misunderstand. We clarify exactly what conduct each statute prohibits.
Avoiding mistakes - Talking to federal agents without an attorney often backfires. We advise you on asserting your rights.
Advancing defenses - We dig into the details to identify potential defenses like lack of intent or being an unknowing participant.
Obtaining evidence - The government must provide all evidence. We analyze it to build your defense.
Mitigating sentencing - If convicted, we present proof of your good character and circumstances to minimize or eliminate jail time.

How a Skilled Federal Defense Lawyer Can Help

Facing PPP or EIDL fraud charges is scary. But skilled legal counsel can prevent panic and build your strongest case. Do not delay in seeking representation if contacted by investigators or charged with COVID relief fraud. Reach out for a free case assessment today.