Orlando SBA Loan Fraud Lawyer

Trusted Orlando SBA Loan Fraud Attorney

Federal agencies aggressively investigate allegations of fraud related to government-backed lending programs. If they believe that fraud has occurred, you can anticipate that it will be thoroughly investigated. Do not try to handle these accusations alone. The legal process can be complex. An Orlando SBA loan fraud lawyer at The Kirlew Law Firm can manage it for you. Our Orlando white collar crimes lawyer will review the evidence, deal with the agents, and build your defense from day one.

Get to Know The Kirlew Law Firm

The Kirlew Law Firm serves clients all over Florida in complex state and federal criminal cases. Brian Kirlew, the founding attorney at The Kirlew Law Firm, is board-certified as a criminal trial lawyer, a designation that is awarded to less than 2% of Florida lawyers. 

Over the course of his career, Brian Kirlew has tried over 5,000 cases, completed 65 jury trials, and taken over 7,500 depositions. The attorneys at The Kirlew Law Firm have the experience in the courtroom necessary to defend clients under investigation for serious crimes.

What Is SBA Loan Fraud? 

The Small Business Administration (SBA) is a government agency that administers several loan programs, which are designed to make it easier for businesses to get financing. Although many SBA investigations are focused on pandemic relief programs, such as the Economic Injury Disaster Loan (EIDL) or the Paycheck Protection Program (PPP), allegations of SBA loan fraud can arise from any SBA-backed lending program.

Investigations into SBA loan fraud usually allege that the applicant gave a financial institution false or misleading information, either during the application itself, throughout the loan’s term, or concerning the loan’s intended use.

Not every investigation leads to criminal charges. It’s worth noting that these government inquiries can sometimes be triggered by accidental errors in accounting, misinterpretations of loan stipulations, or false data supplied by an outside source. To get a conviction, the prosecutor must still prove every element of the alleged offense beyond a reasonable doubt.

The SBA reported that it has sent 562,000 allegedly fraudulent loans to the Treasury Department for collection. This is the largest referral package the SBA received in its history. The borrowers are connected to $22.2 billion in COVID Economic Injury Disaster (EIDL) and PPP loans that were previously flagged as possibly fraudulent.

How Federal SBA Investigations Begin 

Many SBA fraud investigations begin long before any criminal charges are filed. Federal agencies often learn about potential SBA loan fraud through:

• Referrals from lenders
• Suspicious activity reports filed by financial institutions
• Audit findings
• Tips from whistleblowers
• Intelligence gathered during other ongoing investigations

In some cases, a business may not know about an investigation until after it receives a subpoena for records. In others, it only becomes aware when employees are interviewed by federal agents. 

Common Allegations in SBA Loan Fraud Cases 

Federal investigators review many types of alleged misconduct involving SBA-backed loans. While the exact charges hinge on the case’s specifics, an investigation could include allegations that a borrower: 

• Provided false income, payroll, or revenue statements during the loan application process.
• Used another person’s identity or business information. 
• Created shell companies or falsified financial documents. 
• Misappropriated loan funds in a manner that reportedly breached program terms.
• Submitted multiple loan applications with conflicting information. 

Each federal investigation is unique and depends on the facts, supporting documents, and evidence obtained by federal agents.

What to Do If You Are Being Investigated

If you might be the target of an SBA loan investigation, you should keep all business records and financial information related to the loan, including the loan application, tax returns, payroll records, e-mails, and bank statements. Do not destroy documents, as this can result in additional charges. 

If you are requested to be interviewed by federal agents or served with a subpoena, you should read the documents carefully. Then, consult an Orland SBA loan fraud attorney to fully understand your legal rights and obligations before responding. 

Hire an SBA Loan Fraud Lawyer

Making the decision to hire an SBA loan fraud lawyer before any formal charges are filed can give them an opportunity to review subpoenas and search warrants before a response is made. They can represent you throughout the extensive legal process and explain the SBA loan fraud laws. 

SBA fraud prosecutions are frequently prosecuted in the George C. Young Federal Annex Courthouse at 401 West Washington St., Orlando, Florida 32801 in Central Florida. 

FAQs

What Is the Penalty for SBA Loan Fraud?

The potential penalties for SBA loan fraud vary based on the federal charges, the amount of money at hand, and the facts of the case. The conviction could result in prison, high fines, restitution, and the forfeiture of certain assets. Sentencing is determined under federal law. It may also be influenced by a defendant’s criminal history and other aspects of the SBA loan fraud case.

Can You Go to Jail for Loan Fraud?

Yes. Loan fraud is a crime that can potentially carry a prison sentence upon conviction. Depending on what allegedly happened, federal prosecutors might bring charges like bank fraud or conspiracy. What a person might face as a penalty hinges on the specific crime, how much money was lost, and other elements the judge takes into account when deciding a sentence. 

How Far Back Can Fraud Be Investigated?

Fraud can be investigated many years into the past. The statute of limitations determines how much time there is to file criminal charges, although some exceptions may apply or toll the deadlines under federal law. Federal agencies use this time to build their case and analyze a large amount of evidence, including bank statements, tax returns, and other business documents. 

Can an SBA Loan Audit Lead to a Criminal Investigation?

Yes, an SBA loan audit can lead to a criminal investigation. Although most SBA audits are administrative proceedings, information discovered during an audit may be turned over to federal investigators if there is evidence of possible fraud or other criminal misconduct. An audit does not automatically lead to criminal charges, but it may trigger further investigation by agencies tasked with pursuing financial crimes. 

Speak With an Attorney Today

If you have been accused of SBA loan fraud, The Kirlew Law Firm can explain the charges against you and advocate on your behalf. Contact us to speak with an Orlando SBA loan fraud attorney today.