An allegation of fraud does not mean the government can prove that a crime occurred. Business owners who understand how these cases are investigated and defended can make informed decisions in response to a federal investigation. A Orlando PPP loan fraud attorney at The Kirlew Law Firm can develop your PPP loan fraud defense in Orlando.
Every PPP Fraud Case Is Different
The Paycheck Protection Program’s creation was a rapid response to the COVID-19 pandemic, with its guidelines for who qualified, how loans were forgiven, and what expenses were permitted shifting over its duration. It’s important to remember that not every irregularity discovered in an audit or investigation constitutes criminal fraud.
Some investigations arise from allegations of intentionally altered payroll records or fabricated businesses. In others, the basis for an investigation is unclear, or it might involve simple bookkeeping errors. In formulating any defense, a primary action is to assess whether the prosecution can demonstrate that a supposed misrepresentation was knowingly and intentionally put forward.
Under the PPP Injury Disaster Loan Program, the Small Business Administration disbursed more than $1 trillion. Over $200 billion is thought to have been involved in potentially fraudulent funding.
Common Defense Strategies in PPP Loan Fraud Cases
The facts of each case determine which defenses apply. However, some common defenses are used in Orlando PPP loan fraud cases.
One common defense is the lack of criminal intent. In general, federal fraud offenses require proof that the person knowingly participated in a scheme to defraud. Proof such as documents showing that bookkeeping errors, reliance on advisors, or a misunderstanding of program updates led to inaccurate or incomplete information being submitted might hold considerable weight.
Defense counsel may also show that investigators misinterpreted financial records or applied erroneous legal conclusions to a complicated business practice. Calculating payroll, filing taxes, contractor or employee status, business expenses, and loan reports is more complicated than it appears. A defense lawyer may engage the services of forensic accountants or other financial professionals to review records.
Attorneys may also ask whether investigators lawfully obtained evidence. Any evidence acquired by law enforcement that exceeded a search warrant’s parameters or violated constitutional rights is subject to pre-trial challenge.
Analyzing the Government’s Evidence
Federal prosecutors usually develop PPP fraud cases based on significant evidence in the form of paperwork, such as bank statements and loan documents. Before deciding how to proceed, a defense attorney is likely to review how that evidence was obtained and whether it supports the charges.
A person can be charged for various federal crimes, such as wire fraud and making false statements to institutions. Wire fraud law prohibits the use of electronic communications as part of a scheme to defraud. This statute is often applied in PPP fraud cases because most applications were completed online and electronically submitted to lenders.
Additionally, it’s illegal to knowingly provide false statements when applying for certain loans or engaging in lending activities. The question of whether prosecutors can establish that a statement was deliberately untrue often proves pivotal in these matters.
Federal Cases in Orlando
Most federal PPP fraud prosecutions involving Central Florida are heard in the George C. Young Federal Annex Courthouse at 401 West Washington St., Orlando, FL 32801.
The FBI, the SBA Office of Inspector General, IRS Criminal Investigation, and the Department of Justice often conduct these investigations. Business owners located near Downtown Orlando, Lake Eola, Winter Park, or Florida’s Turnpike may be contacted by these federal agencies if they are responding to an investigation.
Why Hire The Kirlew Law Firm?
Federal fraud cases often involve thousands of pages of financial records, extensive electronic evidence, and complex procedural rules. The Kirlew Law Firm represents clients throughout Florida in serious federal criminal investigations.
Brian Kirlew is a board-certified criminal trial lawyer who has handled more than 5,000 cases, completed 65 jury trials, and taken over 7,500 depositions. The firm’s litigation experience positions us to:
- Scrutinize difficult evidence.
- Push back against the government’s case when appropriate.
- Prepare clients for the entirety of federal criminal proceedings.
FAQs
Can a PPP Loan Fraud Investigation Begin After My Loan Has Already Been Forgiven?
Yes, a PPP loan fraud investigation can begin after your loan has already been forgiven. Loan forgiveness is not a bar to government examination of whether an applicant provided false information in applying for a loan, seeking forgiveness, or using loan funds. Federal agencies can audit records several years after a loan is forgiven.
Do Investigators Interview My Accountant During a PPP Fraud Investigation?
Yes, investigators may interview your accountant during a PPP loan fraud investigation. Usually, the accountant is a witness and may be asked to explain what documents were prepared and what information was relied on. An accountant’s involvement in an investigation does not mean the business owner has done anything wrong.
Can I Continue to Operate My Business During a PPP Fraud Investigation?
In many cases, yes. Federal law enforcement rarely tells a business to shut down or suspend operations just because of a civil investigation. Unless a court issues an order freezing a business’s assets or limiting certain business activities, most companies continue operations while an investigation is pending.
Business owners should continue to keep accurate financial records and, if requested, provide truthful information to law enforcement.
Do all PPP Loan Cases Go to Trial?
Not all PPP loan cases go to trial. Most federal criminal cases are resolved without a trial through dismissals or negotiated plea agreements. Other cases are disposed of through pretrial motions that affect the evidence available at trial. Ultimately, whether a criminal case goes to a jury trial often depends on how compelling the evidence is, the legal arguments involved, and the choices made by both sides.
Hire a PPP Loan Fraud Lawyer Right Away
Business owners often first learn about an investigation for PPP loan fraud after receiving a subpoena or being asked to participate in a voluntary interview. Choosing to hire a PPP loan fraud lawyer early can allow an attorney to review subpoenas, explain legal obligations, and analyze the evidence against you. The Kirlew Law Firm understands PPP loan fraud laws and can go over how they apply to your case. Contact us today for more information.
