As to why the federal government is believing many acts of PPP fraud have taken place, you can thank banks and other lenders across the country for this. Because the funds for the PPP were exhausted in an extremely short period of time, government authorities have sought input from lenders around the nation as to why they think this has occurred. Unfortunately for business owners, most lenders feel the funds dissipated so quickly due to fraud. As a result, federal agents and others are beginning to scrutinize all PPP loans made to businesses to spot unusual activity. Thus, even if you got your PPP loan legitimately, a recent transaction you may have made regarding the purchase of a new car, real estate, or other expensive item may have you under the watchful eye of the federal government. If this results in fraud allegations being brought against you, don’t delay in seeking advice from experienced PPP loan fraud lawyers.
Pressure to Act
Since the PPP has received a large amount of negative publicity since its inception and implementation, political forces have put tremendous pressure on federal agencies such as the Treasury Department to act quickly in discovering fraud cases around the country. As a result, federal authorities are busy pouring through the information contained in the federal database that tracks all PPP loan distributions. Thus, while you may have received your PPP loan, put it to proper use, and have given little thought to the government accusing you of wrongdoing, there is a very real possibility this could happen to you in the coming weeks. Should you get a visit from federal agents who are accusing you of fraud and threatening you with large fines or even prison sentences, don’t panic and try to discuss the situation with them at that moment. Instead, choose to say as little as you can and let them know you are contacting PPP loan fraud lawyers for legal guidance on the matter.
Loan Stacking Accusations
Since the PPP was so complex and rushed out to business owners so fast, it is only natural to assume some people misunderstood the guidelines and thus may have mistakenly received more funds than they were entitled to during the process. However, the government doesn’t care about innocent mistakes. Instead, it will be determined to make an example out of each and every business owner it feels committed fraud. For example, if you did not fully understand the PPP rules, it is possible you may have received loans from more than one lender. While you may have simply been thankful for your good fortune, the government will accuse you of loan stacking and attempt to bring serious fraud charges against you and your business. Unfortunately, loan stacking is the primary area in which federal agents are currently investigating. If you find yourself accused of loan stacking, don’t assume you will automatically be facing a prison sentence. By hiring knowledgeable PPP loan fraud lawyers to represent you, they can negotiate with government prosecutors, explain your situation, and get the case resolved to everyone’s satisfaction.
Using Your PPP Loan for the Wrong Purposes
If government authorities do not accuse you of loan stacking, they may instead decide you used your PPP loan for purposes for which it was not intended. While the funds were meant to be used only on such things as paying rent, meeting payroll, covering utility expenses, and paying the interest on a mortgage, you may have mistakenly used it for other things, such as purchasing new equipment or other things. Also, the PPP funds were only allowed to be used on expenses that existed as of February 15, 2020. However, this was not clear to many business owners, and as a result has led to much confusion and many allegations concerning fraud. Thus, after learning more about the PPP and discovering you may have used the funds improperly, don’t wait for federal investigators and prosecutors to come down hard on you. Instead, schedule a consultation with PPP loan fraud lawyers so you can discuss your situation and allow your lawyers to get ahead of the situation.
Though the idea behind the PPP was great, the results have been anything but that for many business owners. If you received a PPP loan but are now being told by federal authorities you could be facing fraud charges, make sure your constitutional rights are protected from the beginning by hiring skilled PPP loan fraud lawyers.