Los Angeles PPP Fraud Defense Lawyers

Defense Against Los Angeles Charges of PPP Fraud

When zealous federal prosecutors have your business in their sights, it's time to talk to your lawyer. Even when the charges are totally unfounded, a federal investigation can damage your reputation and wreak havoc on your business.

The experienced Los Angeles federal crime defense attorneys at Werksman Jackson & Quinn LLP know how to handle high-pressure cases. We won't be intimidated by federal prosecutors or anybody else. We'll investigate the charges against you and develop a strong legal strategy to protect your business and good name.

Werksman Jackson & Quinn LLP is one of the most prominent criminal defense firms in the country. We've handled several high-profile cases, and our lawyers have been featured on ABC News, CNBC, Fox News, Esquire, the BBC, and the Los Angeles Times. Our firm is AV Rated by Martindale-Hubbell, their highest rating for ethical standards and legal ability. We've also been recognized by the independent rating agency Super Lawyers for providing clients with superior service.

Our Los Angeles offices are conveniently located near the Westin Bonaventure Hotel and Suites, The Delphi Downtown LA, and Sheraton Grand Los Angeles — call (213) 688-0460 to schedule a case review today.

What Is PPP Fraud?

The Paycheck Protection Program (PPP) was a federal loan program introduced during the pandemic to help businesses keep their workforce employed. Until May 31, 2021, certain businesses that met specific qualifications could apply for a PPP loan backed by the Small Business Administration (SBA) at a low-interest rate of 1%. Borrowers that met certain conditions could qualify for full loan forgiveness. Currently, individuals in different states are facing criminal charges for fraud involving the Paycheck Protection Program.

Federal prosecutors are pursuing criminal charges for identity theft, tax evasion, mail fraud, wire fraud, and bank fraud concerning PPP loans. PPP loan fraud cases involve allegations regarding the following activities:

• Lying on PPP loan applications
• Falsifying business or tax records
• Using PPP loans for unauthorized purposes
• Loan stacking (receiving PPP funds from more than one lender)
• Concealing or misrepresenting information during a PPP audit or investigation

Federal Government Investigation of PPP Fraud

The federal government has made it clear that it intends to investigate and prosecute business owners and individuals who fraudulently obtained or attempted to obtain PPP funds. Press releases regarding prosecution of people charged with PPP and COVID-19 relief fraud have been issued by the U.S. Department of Justice (DOJ).

The CARES Act, under which the program was funded, was intended to provide relief to companies and individuals affected by the COVID-19 pandemic. The Paycheck Protection Program was funded with nearly $350 billion in federal money. Participating lenders were immediately flooded with applicants; the program ran out of funds, leaving many eligible companies unable to receive loans. As a result, companies that did receive PPP loans are currently under scrutiny by federal authorities.

The DOJ and SBA Are Actively Investigating Los Angeles PPP Fraud

Federal government involvement in PPP fraud investigations signifies heightened scrutiny that may lead to severe consequences for businesses. The Small Business Administration (SBA) and the Department of Justice (DOJ) play critical roles in the oversight and investigation of potential fraud within the Paycheck Protection Program (PPP).

The SBA, which administers the program, reviews loan applications and disbursements to ensure compliance with PPP guidelines. When inconsistencies are detected, the SBA refers cases to the DOJ for further investigation. The DOJ then takes the lead on the legal front, probing into the details of the case and determining whether fraudulent activity has occurred.

Federal investigations can do serious damage to your reputation, negatively impacting customer trust and future business opportunities. It's important to act promptly by securing experienced legal representation. In many cases, Werksman Jackson & Quinn LLP can dispel the accusations against our clients and clear up the matter without having to take your case to trial.

Legal Penalties for PPP Fraud in Los Angeles

Investigations by the SBA and DOJ may indicate substantial evidence or suspicion of fraudulent activity. This may result in criminal charges, hefty fines, and even imprisonment for individuals found guilty of fraud.

Potential penalties for PPP fraud will depend on the specific charges arising from a loan fraud investigation. For example, defendants may face the following penalties upon conviction of the following charges:

• Tax Evasion: Fine of up to $100,000 for an individual or $500,000 for a corporation and up to five years in federal prison.
• Bank Fraud: Fine of up to $1 million and a federal prison sentence of 30 years.
• Making False Statements: Fine of up to $1 million and 30 years in federal prison or statutory fines and up to five years in federal prison, depending on who is involved. This includes:
• Falsifying statements to the SBA,
• Making false statements to an FDIC-insured bank, or
• Making false statements to federal agents.
• Wire Fraud: Statutory fines and up to 20 years in federal prison.
• Aggravated Identity Theft: Additional penalty of up to two years imprisonment.
• Conspiracy: Statutory fines and up to five years federal imprisonment, plus the same penalties as prescribed for the underlying offense.
• Attempt: The same penalties as prescribed for the attempted criminal offense.

Robust Legal Defense Against Los Angeles PPP Fraud Charges

Creating a solid legal defense strategy is essential when confronting PPP fraud accusations. A comprehensive defense begins with a full review of all loan documentation, correspondence with the SBA, and financial records. Our lawyers will analyze every detail to identify any areas that could be misconstrued as fraudulent by federal investigators.

A solid legal strategy requires managing discussions with the government to ensure your position is clearly and effectively conveyed. Werksman Jackson & Quinn LLP will craft a narrative that accurately represents your business's intentions and actions, emphasizing compliance with PPP guidelines and legitimacy in the use of funds. Throughout this process, we will work to protect your rights and seek to prevent the charges from escalating.

Why You Need the Right Los Angeles Defense Attorney

Federal agencies are looking back in an effort to identify companies that received PPP funds unlawfully, and the risk of prosecution is increasing. If you or your company is targeted for PPP fraud, it is important to retain experienced Los Angeles criminal defense lawyers to reduce the risk of substantial penalties.

At Werksman Jackson & Quinn LLP, we handle many challenging, high-profile cases. Attorney Mark J. Werksman is well-known for his federal defense work. He is a former Deputy District Attorney and former Assistant United States Attorney.

Call us at (213) 688-0460 — we offer a free initial consultation and can provide skilled legal defense against Los Angeles PPP fraud charges.