West Palm Beach SBA EIDL Loan Fraud Lawyer

Skilled West Palm Beach SBA EIDL Loan Fraud Attorney

Federal investigators are still looking into alleged fraud related to Economic Injury Disaster Loans (EIDL), even years after the start of the COVID pandemic. If you have been accused of fraud, an attorney can explain the allegations against you and the possible federal laws you could be charged with violating. These crimes are usually prosecuted in federal courts, so they require representation from a West Palm Beach SBA EIDL loan fraud lawyer who understands federal criminal defense.

Our Commitment to Our Clients

The Kirlew Law Firm defends people who are charged with federal crimes or under federal criminal investigation in Florida. We have handled thousands of criminal cases, including complex fraud and white-collar crime matters. West Palm Beach defendants have direct access to lawyers with significant trial experience. We are familiar with the federal court system and federal procedures that typically govern SBA loans and disaster relief scams.

What Is an EIDL Loan?

EIDL stands for Economic Injury Disaster Loan. These loans are provided through the U.S. Small Business Administration. While many SBA loans are issued by private banks and lenders, the EIDL funds come directly from the federal government.

Business owners can apply for EIDL funding after natural disasters or other events that have negatively impacted their business. In 2020, Congress approved additional funding for EIDLs to assist small businesses, contract workers, and some nonprofit organizations that suffered financial hardship due to the COVID pandemic.

Applications for financial assistance were open for several months, resulting in millions of applications nationwide. There were 27.7 million applications for COVID-era SBA EIDLs before the program stopped accepting applications at the beginning of 2022. Federal agencies are still auditing paperwork and loan distributions for evidence of fraud. EIDL loan fraud investigations often involve reviewing years of financial records and business documentation.

Public documents reveal that, between March 2020 and May 2021, the government, via the Small Business Administration, disbursed over $796 billion in PPP loans. A total of $762 billion was forgiven.

SBA EIDL Loan Fraud

Applicants are accused of EIDL loan fraud when they allegedly make false statements or fail to include important information on their application to obtain disaster relief funds. 

Prosecutors and investigators often look at whether information was knowingly falsified on the application. They also review how loan recipients used the funds that were disbursed. Some common types of allegations include:

• Providing false information about business income or expenses
• Purposely reporting a deceptive number of employees
• Using someone else’s Social Security number to apply for loans
• Applying for loans for fictitious businesses
• Lying about tax returns or financial information
• Using funds for inappropriate purposes

Prosecutors must prove that the accused knew that the statements they made were false when making a claim against a defendant. 

There are many SBA EIDL loan fraud laws that prosecutors use when charging individuals with SBA EIDL loan fraud. One of the most common statutes involves 18 U.S.C. § 1001. This law makes it a crime to knowingly make false statements or withhold information from the federal government. Because the SBA issues EIDL funds directly, this law is commonly found in federal charging documents.

SBA EIDL Loan Fraud Penalties

The penalties for SBA EIDL loan fraud vary based on the circumstances. Most charges that stem from EIDL loan applications are federal felonies. Penalties can include:

• Jail or prison time
• Probation
• Fines
• Restitution

The sentence is determined by the specific charge and the circumstances surrounding it, such as the amount owed and the presence of a prior record. Understanding the sentencing guidelines for similar federal fraud cases helps business owners know what they might be facing. Defendants can also be required to pay back the funds that the government claims were falsely obtained.

Additionally, there can be other long-term penalties for fraud convictions. Some collateral consequences of fraud may include ineligibility for future government loans, loss of professional licenses, and disqualification for certain jobs.

The majority of EIDL fraud offenses are handled in federal courts. Understanding how cases proceed in South Florida federal court is an important part of preparing for what comes next. For West Palm Beach residents, the federal court is located at the Paul G. Rogers Federal Building and U.S. Courthouse, 701 Clematis Street, West Palm Beach, FL 33401.

Hire an SBA EIDL Loan Fraud Lawyer

Federal fraud investigations can involve many financial documents and years of government analysis. Many people decide to hire an SBA EIDL loan fraud lawyer only after they find themselves being investigated or charged.

A West Palm Beach SBA EIDL loan fraud attorney can:

• Review financial documents. 
• Assess the strength of the government’s case.
• Develop defenses.
• Speak with investigators on your behalf.
• Guide you through interviews and court appearances. 
• Represent you in court.

Additionally, your legal counsel can confirm whether the evidence backs the government’s allegations that false statements were knowingly and intentionally made. 

FAQs

What Happens If Someone Else Completed My EIDL Application?

If someone else completed your EIDL application, they may not automatically be held criminally liable. Many borrowers utilized the services of accountants, consultants, or third-party companies to help complete their EIDL applications. When applications contain false information, investigators look at who completed the forms, what data they were given, and whether the borrower reviewed the application prior to submitting it. 

Can EIDL Fraud Allegations Affect Professional Licenses?

Sometimes, fraud allegations can affect professional licenses. Some licensing boards take into account pending criminal charges or convictions while determining whether an individual should be granted or continue to hold a professional license. In some cases, allegations of fraud or dishonesty may result in further administrative action, independent of the criminal case.

Are Nonprofit Organizations Subject to EIDL Fraud Investigations?

Yes, nonprofit organizations may be subject to EIDL investigations. Nonprofits that qualified for the program could apply for an EIDL. Investigators can look into applications filed by nonprofits, just as they would applications from for-profit entities. Investigators can examine important documents to see if the applicant provided true and correct information on their application.

Can EIDL Fraud Investigations Involve Personal Bank Accounts?

Yes, EIDL fraud investigations can involve personal bank accounts. Investigators can look into personal financial information if they suspect that loan funds were deposited into personal accounts or spent on non-business expenses. Examining financial transactions is common in federal fraud cases, as prosecutors often subpoena bank records to track where money came from, how it was transferred, and where it was spent.

Get Started With The Kirlew Law Firm Today

If you have been accused of SBA EIDL loan fraud, The Kirlew Law Firm can help you throughout the legal process. Contact us today to speak with a representative.