Paycheck Protection Program (PPP) Loan Forgiveness Fraud
Paycheck Protection Program (PPP) loan forgiveness has not been easy to garner. The Small Business Administration (SBA) has denied loan forgiveness to most seeking it. However, the SBA has found negative audits that triggered investigations by the Department of Justice.
While the U.S. Treasury Department and the Small Business Administration (SBA) approved loans without key borrower identification information, the Government Accountability Office (GAO) recommended that the Small Business Administration (SBA) create a system to deal with fraud upon issuing loans for the PPP.
When the PPP loans concluded in August 2020, the program had issued loans in excess of $525 billion. About 20% of the loans were for more than $2 million. The majority staff of the Select Subcommittee on the coronavirus raised red flags about potential abuse for:
- Companies receiving multiple loans
- Companies who are not sanctioned for doing business with the U.S. government
- Government contractors with a history of performance issues
The Government Is On Alert
The SBA is avidly conducting loan forgiveness reviews of loans over $2 million, focusing on the borrower’s economic need and overall compliance with the program’s requirements using an automated review tool and manual reviews. Flagging potential fraud is highly subjective and potentially fraught with human error.
The Department of Justice Criminal Fraud Section has charged more than 50 individuals with fraud relating to the Paycheck Protection Program (PPP) for loans ranging from $30,000 to $24 million.
Contact the Kushner Law Group, PLLC, right away if you or your company is under investigation for:
- False representation
- False supporting documents
- Misuse of loan funds
The federal government is a daunting opponent. Our team of attorneys has the experience to develop a strong defense to mitigate the allegations you are contending with.
Call Today If You Are Facing Allegations Of Government Assistance Fraud
If you believe you are under investigation for any form of government assistance fraud, contact the Kushner Law Group, PLLC, as soon as possible. Our attorneys have years of experience providing intelligent, aggressive defenses for our clients. Call 718-838-9341 or send us an email.