West Palm Beach SBA Loan Fraud Lawyer

Dedicated West Palm Beach SBA Loan Fraud Attorney

Federal investigators can look into allegations involving Small Business Administration (SBA) loans, even years after the money was disbursed. If you are speaking with federal agents, have received a subpoena, or have been accused of financial crimes, you can benefit from consulting a West Palm Beach SBA loan fraud lawyer. They can explain the allegations, federal laws that have been violated, and SBA loan fraud penalties you could face if convicted. 

Meet The Kirlew Law Firm 

The Kirlew Law Firm defends clients throughout Florida who have been accused of state and federal crimes. Our firm has handled thousands of criminal cases. We defend clients in complex federal cases where they are being investigated by federal agencies. 

Criminal defendants in West Palm Beach benefit from our experience in litigating cases in federal court. We understand how federal prosecutors in the Southern District of Florida handle criminal investigations.

Understanding SBA Loan Fraud

The U. S. Small Business Administration helps small business owners by creating opportunities for financing and other resources. While the SBA does disburse funds through certain disaster relief programs, most small business loans are provided through private lenders with government backing.

SBA loan fraud allegations involve obtaining a loan through false statements or misrepresentations that the applicant knew were false. Many fraud prosecutions allege that the defendant lied on a loan application to:

• Qualify for a loan.
• Receive more money.
• Obtain better terms. 
• Influence the lender’s decision.

One of the most widely known instances of SBA loan fraud is Paycheck Protection Program (PPP) loan fraud. The U.S. SBA declared that it has sent the U.S. Department of the Treasury 562,000 suspected fraudulent loans for collection, which is the SBA’s largest referral package to date. The borrowers are connected to $22.2 billion in COVID Economic Injury Disaster Loans (EIDL) and PPP loans that were previously reported for possible fraud.

What Leads to SBA Loan Fraud?

With SBA loan fraud, what prosecutors primarily look for is whether the misleading information was crucial to the lender’s lending decision. The key question is whether a false statement would likely affect a lender’s or government body’s evaluation of an application. Examples of activities that could lead to SBA fraud charges include:

• Exaggerating revenue and payroll amounts
• Dishonesty regarding the number of employees
• Altering tax returns
• Changing financial records
• Hiding debt
• Submitting an application for an illegitimate business

In general, federal authorities make a distinction between sincere errors and deliberate deception. In these situations, the government’s capacity to demonstrate knowledge and intent frequently becomes crucial.

SBA Loan Fraud Laws

Federal prosecutors can use several laws when charging SBA loan fraud. Each law requires proof of different elements.

One law that is commonly included in charges is 18 U.S.C. § 1001. It is illegal to knowingly make false statements or material omissions during matters involving the federal government. Providing false information related to a loan application to the SBA can lead to prosecution under this statute.

18 U.S.C. § 1014 is another law that is often included in SBA fraud charges. Understanding the differences between bank fraud and wire fraud is important when prosecutors start building their case. It is a crime to knowingly make false statements for the purpose of influencing a financial institution’s decision-making. The financial institution must be insured by the federal government. Because many SBA loans are administered through banks and other lenders, this law is commonly used in connection with SBA loan fraud prosecutions.

Hire an SBA Loan Fraud Lawyer

Federal investigations into financial crimes often involve auditors reviewing financial documents, analyzing bank accounts, and working with government agencies. Many people who choose to hire an SBA loan fraud lawyer wait until they have been contacted by federal agents. 

A West Palm Beach SBA loan fraud attorney can:

• Review evidence obtained by the government.
• Determine if documents support the allegations being made.
• Identify potential defenses.
• Speak with prosecutors.
• Represent and guide you through the federal criminal justice system. 

Responding to a federal subpoena the right way can make a significant difference in how your case unfolds. Seeking legal counsel at the earliest stage is crucial for protecting your future. 

Most SBA loan fraud prosecutions brought against residents of West Palm Beach are processed in federal court at the Paul G. Rogers Federal Building and U.S. Courthouse, located at 701 Clematis Street, West Palm Beach, FL 33401.

FAQs

What Is the Penalty for SBA Loan Fraud?

Potential penalties for SBA loan fraud vary based on the federal charges filed. A prosecutor can charge someone with false statements, bank fraud, wire fraud, or fraud in a loan application. If convicted, defendants could face time in prison, fines, restitution, supervised release, and forfeiture. Penalties can carry decades in federal prison based on the amount of the loan or the number of transactions.

Who Investigates SBA Loan Fraud?

SBA loan fraud investigations are usually carried out by several federal agencies. These include the following:

• SBA Office of Inspector General (OIG)
• Federal Bureau of Investigation (FBI)
• Internal Revenue Service Criminal Investigation Division (IRS-CI)
• Department of Justice (DOJ)

Palm Beach County business owners who find themselves under investigation face a long and difficult process. During their investigations, law enforcement officers usually analyze bank statements, loan documents, tax returns, and corresponding records and emails.

How Long Can You Go to Jail for Loan Fraud?

The sentence for loan fraud can vary, as it depends on which statute you are convicted under. Some false statement charges have maximum penalties of only a few years, but bank fraud and loan application fraud charges can be punishable by decades in federal prison. Actual sentences vary based on the amount of loss, the defendant’s criminal history, and the facts of the case.

What Evidence Is Needed to Report Fraud?

To report fraud, relevant supporting evidence includes:

• Loan paperwork
• Financial documents
• Emails
• Text messages
• Bank statements
• Payroll documentation
• Contracts
• Any information that leads them to believe that false information was provided

Although you do not need to have hard evidence to file a fraud report, the more information you have to substantiate your claim, and the more credible your information is, the better an agency can determine what happened.

Protect Your Rights Today

Being accused of SBA loan fraud can lead to serious penalties if convicted. A lawyer at The Kirlew Law Firm can explain the charges against you and navigate the process. Contact us today to learn more about your legal options.