During the COVID-19 pandemic, many small businesses in Tampa struggled to stay afloat. So, when the SBA launched the Paycheck Protection Program, or PPP, loans, many businesses took advantage of this aid to help them through the difficult times. Now, many business owners are being flagged for fraud. Whether you own a business in West Tampa or on Davis Islands, knowing how Tampa business owners can respond to PPP loan fraud charges is important.
What Is PPP Loan Fraud in Tampa?
In Tampa, true PPP loan fraud can happen in a number of ways. When you are charged with PPP loan fraud, it is important to be aware of the exact nature of your charges; that way, you can better defend yourself and protect your business. The most common types of PPP loan fraud that businesses are being flagged for include:
- Providing false information on applications, including falsified employee count, inflated payroll costs, or exaggerated business operations
- Misusing loan funds, such as when using funds to make your own personal purchases, making unrelated business investments, or spending the funds on non-qualifying business expenses
- Loan stacking, or applying for a number of PPP loans in order to exceed funding limits. Understanding the time limits for filing charges gives business owners a clearer picture of how long they might be at risk.
In the height of the COVID-19 pandemic, between 2020 and 2021, Florida received 689,432 PPP loans, and the city of Tampa, which was listed as the city to receive the fourth highest amount of PPP loan funds in the nation, received $6.9 billion in Paycheck Protection Program aid.
The Signs You Are Being Investigated for PPP Loan Fraud
In Tampa, if you are a small business owner, there are a number of signs that might point to the fact that you are being investigated for PPP loan fraud. If you notice any of the following actions, it is essential that you contact a Tampa PPP loan fraud attorney as soon as possible:
- Your assets or your bank accounts have all been frozen
- Your bank notifies you that these accounts have been frozen or that you are no longer able to access your funds
- Federal investigators make contact with you or even show up at your place of business
Knowing what to expect from the federal court process can take away some of the fear of the unknown. Realizing you are being investigated for PPP loan fraud is scary, but you do have legal options available to you that can allow you to maintain some level of control.
The Steps to Take If You Are Being Investigated for PPP Loan Fraud
When you come under investigation for PPP loan fraud in Tampa, your first instinct might be to panic. However, this is rarely the answer. Instead, it is essential that you remain as calm as possible and take certain steps that can help you mitigate the impact of an investigation. The last thing you want is your business to be affected, as this can hurt your profits. Instead, take these actions:
- Collect all of your personal and business financial records and make digital copies. Having these documents on hand is essential to your defense as they can offer an explanation of your original loan request.
- Do not attempt to destroy, throw away, or shred any related business records, especially those that you used to file your loan application or certifications. Not only will these documents likely become essential in the future, but destroying any evidence related to a PPP loan fraud case could lead to additional charges.
- Lastly, let your employees know that they can submit any thoughts or suspicions without any fear of retaliation. There are many myths and facts about PPP loan fraud that can confuse business owners who are trying to understand their situation.
About The Kirlew Law Firm, PLLC
With over 5,000 criminal and white-collar crime cases behind us, the team at The Kirlew Law Firm, PLLC knows how to defend clients who face PPP loan fraud accusations. We have built our firm on careful preparation, a deep commitment to those we represent, and strong courtroom advocacy. We understand that this is one of the most difficult moments of your life, and we are here to represent you and defend you to protect both your rights and the future of your business.
FAQs
What Can a PPP Loan Fraud Lawyer Do to Help?
There are multiple ways a PPP loan fraud lawyer can assist you when you are under investigation for this criminal act. They are here to gather and preserve all applicable documentation, loan applications, and business records that could play into your defense. They can also negotiate with prosecutors to seek alternative sentencing methods or to have the case dismissed altogether.
What Are the Penalties of PPP Loan Fraud?
If a business owner in Tampa is convicted of PPP loan fraud, there are a number of severe and life-altering penalties they might face. These can include significant financial fines, totaling upwards of a million dollars, imprisonment that can last for several decades, and having to pay restitution payments, or having to pay back the defrauded loan amount in full.
Who Is Typically Charged With PPP Loan Fraud?
Often, in cases of PPP loan fraud, it is the business owner who is charged with fraud. These are individuals who have knowingly submitted false or misleading information in order to obtain a loan or have misused the loan funds. Financial advisors and accountants can also face charges, depending on the case.
What Does It Cost to Hire a PPP Loan Fraud Lawyer?
The costs to hire a PPP loan fraud lawyer depend on a number of factors. First, the skill level, experience, and education of your lawyer can come into play and affect the final cost analysis. Other impactful factors may include the severity of the fraud charges, the duration of your case, and the case’s overall complexity.
Hire a PPP Loan Fraud Lawyer
When you learn you are under investigation for PPP loan fraud by federal investigators, the most important step to take is to hire a PPP loan fraud attorney who can begin to protect your rights and future right away. At The Kirlew Law Firm, PLLC, we have the resources and experience needed to defend your case. We invite you to contact us by phone or via our online form today and schedule a free consultation.
