SBA EIDL Loan Fraud

SBA EIDL Loan Fraud Attorney in Miami

SBA (Small Business Administration) has issued millions of loans to American businesses over the decades since its creation. During the coronavirus pandemic, there were a special group of loans issued based upon the uniqueness of that crisis. These loans were called Economic Injury Disaster Loans (EIDL) and approved to tens of thousands of businesses to help them fund their regular business expenses during the economic downturn that resulted from the pandemic.

The requirement of the SBA is that the loans be used strictly for business purposes. However, investigations are turning up evidence that these loans were used to purchase real estate, luxury cars and watches, jewelry and fund lavish vacations. If you are facing SBA fraud allegations or anticipate such an investigation, contact Brian Kirlew, Esq. today to discuss your options. Call us at (305) 521-0484 or contact us online

Navigating the SBA Loan Fraud Maze

SBA loan fraud occurs when businesses or individuals obtain funds from the SBA for legitimate reasons, but then use the funds for unapproved expenditures. The loans are supposed to fund regular business operations like commercial lease payments, salaries, taxes, and operational costs associated with running a small business. The funds approved for EIDL loans were issued directly by the department of treasury and is repayable directly to the SBA.

The SBA also issues loans unrelated to the pandemic and has done so for many decades. To facilitate access to these funds, the SBA partners with several banks and lenders and doesn’t lend money directly. The SBA investigates these applications to see if there are material misrepresentations. These investigations often turn up as federal criminal offenses against the business owner. It is common to see individuals charged with wire fraud, money laundering and conspiracy relating to ill-gotten SBA loans.

Typical scenarios of SBA loan fraud include:

• Providing false financial information to qualify for the loan
• Using stolen personal information to apply for the loan
• Loan stacking without disclosing the same
• Lying about the business details like size or nature
• Spending loan funds for unauthorized purposes
• Collateral fraud to secure the desired loan amount

Each of these is a serious allegation in Miami and can result in federal charges, forfeiture of assets and prison time. There are also hefty fines, loss of professional licenses and being permanently denied access to banking services and credit. The accusations can also tarnish your personal and professional image, affecting future opportunities. It is crucial to seek expert assistance and protect your rights.

Investigation and Prosecution

SBA loan frauds are taken seriously. Investigations are carried out by agencies like the FBI (Federal Bureau of Investigation), DOJ (Department of Justice), and OIG (Office of Inspector General). These extensive investigations involve financial audits, forensic accounting, and more. The inquiry begins with an audit analyzing the suspicious activity. If sufficient evidence can be found, the case is referred to federal prosecutors, and the defendant can encounter multiple charges with penalties designed to deter fraud and punish offenders.

The Need for Experienced Defense

The complexities and severe consequences of SBA loan fraud allegations necessitate the expertise of skilled defense attorneys. Since SBA loan fraud is subject to federal penalties, you need an expert attorney specializing in these cases to navigate the allegations and mitigate against potential consequences. Penalties might include up to 20 years of imprisonment per count charged, along with steep fines.

At Kirlew Law Firm, we have helped numerous clients in South Florida with our knowledge, strategic planning, and advocacy to obtain the best possible outcome in these cases. If you encounter any SBA loan fraud charges, we can offer comprehensive defense strategies, including:

• Detailed case evaluation to identify discrepancies in the prosecution’s case
• Skilled legal expertise to build a strong defense
• Working to reduce the charges through comprehensive mitigation efforts
• Initiating negotiations on your behalf to lower financial penalties
• Safeguarding your reputation and minimizing public exposure

SBA loan fraud charges can be overwhelming and complex. One of the possible defenses is to prove that the defendant didn’t intentionally provide false information to get the loan. Your lawyer may present evidence demonstrating there’s no intention to commit fraud. In every white-collar prosecution, it is essential for the defense to present a credible alternative theory to explain the government’s evidence.

You need a capable SBA loan fraud attorney because they can rightfully take you through the process and establish a robust defense. When you partner with us, we can provide the necessary support and guidance for fair treatment and vigorous representation. You will find The Kirlew Law Firm team standing by your side to help you make informed decisions at every stage of the case.

Contact Kirlew Law Firm for Expert Legal Assistance

If you are facing SBA loan fraud charges, it is important to act quickly. Contact Brian Kirlew, Esq. and the Kirlew Law Firm today to schedule a consultation. Let us be your steadfast ally in this challenging time. Call (305) 521-0484 or contact us online.