It should come as no surprise that the pandemic has had deep, lasting financial effects. In order to address this, the government passed legislation to help those in need, ranging from employment benefits for workers, and PPP loans for business owners. As a result, many Americans found themselves applying for PPP loans. In response, the Department of Justice ramped up its investigation and prosecution of alleged PPP Fraud cases.
It seems that week after week, more and more cases of PPP abuse are surfacing.
The bulk of these investigations deal with a wide-ranging collaboration between federal agencies and prosecutors, utilizing different laws to prosecute those defrauding the government. The complexity of these investigations is a direct byproduct of the nature of falsifying PPP applications; many of these documents deal with employees of real or fictitious entities. They can also deal with real or fictitious revenue. As you can imagine, this can quickly become a tangled web of fraud.
In an attempt to untangle this web, the Department of Justice in May 2021 bolstered its Covid-19 task force. This task force has a mandate to expand the mechanisms of fraud detection with the focus on pandemic-related benefits fraud. This task force will work with multiple offices within the Department of Justice. The Department of Justice is mandated to hold accountable those who commit fraud under the guise of PPP loans and employment benefits. They will also aggressively seek to claw-back the ill-gotten gains.
Significantly, these types of cases can result in severe penalties. Recently, a Georgia man—who created false corporations in order to receive PPP loans—was indicted for allegedly defrauding the federal government and third-party lenders out of $2.6 million. If found guilty, he could face up to 30 years in prison. Additionally, six individuals were charged with PPP loan fraud after receiving $1.5 million on behalf of five businesses based in Georgia and South Carolina. Stories like these are being publicly denounced by the Department of Justice.
Experienced Defense in Federal Fraud Cases
Being accused, charged, and indicted for any of the above crimes can have serious consequences. Depending on your case, the penalties can range from millions of dollars in fines, restitution, and serious jail time. Hiring the right criminal defense attorney is crucial for building the proper defense. Manny Arora has years of proven experience defending white-collar federal cases. Prior to his work as a criminal defense attorney, he was a former prosecutor for Fulton County, Georgia, and a former prosecutor in the US Air Force. He has also been named as one of the top 100 trial lawyers in the US. If you or someone you know has been charged with PPP Fraud, contact the Arora Law Firm. We are based in Atlanta, Georgia, and practice throughout the United States.
