As in any time when there is a major event in the country where the government will be dispensing aid, there will be an opportunity for massive fraud. Covid-19 may be the biggest opportunity for fraud in many years. The government has distributed billions of dollars to businesses across America to help them survive during the pandemic. Many businesses have used this money properly however many people have taken these loans that do not qualify or have a need. So far the Department of Justice has filed charges against over 50 people who have fraudulently taken these types of loans. There will be many more of these types of charges to follow. The loan sizes are in the hundreds of thousands and on some occasions, the millions of the high amount of money in the fraud will present potential large prison terms as that is the formula for a white-collar crime. So far the DOJ is seeing 2 types of frauds.
1. Business owners who have an existing business but have lied about the payroll and operating expenses. These people were funded and used the funds for personal expenses, not a business.
2. Criminal networks that work in groups to establish LLCs with straw owners and establish fraudulent payroll and operating receipts. I have seen groups establish 5-10 fraudulent companies and receive total funding in the millions. These groups will have massive exposure. They typically will receive a lot of funding and will have high criminal exposure. The amount of money in the fraud will determine the amount of possible prison time these groups are potentially facing.
The Government is using highly sophisticated technology to detect this type of fraud. If you have participated in this type of fraud and have been charged by the Department of Justice it’s important to take immediate action. Most people in this situation in many cases do nothing. They are hopeful the situation will go away. They are in denial. I recommend finding an attorney who has worked in the office that you are being prosecuted in, and one that has extensive experience in defending the crime you are charged with. Secondly, I would suggest an aggressive sentencing mitigation strategy. I can assist in both of these areas. If you have been arrested, or are under investigation for PPP Fraud call me to discuss how I may assist you in mitigating your potential prison sentence
