Fresno PPP – EIDL Loan Fraud Lawyers
Contents
Defending Against Allegations of PPP Loan Fraud
The Paycheck Protection Program (PPP) was an emergency loan program created in 2020 under the CARES Act to help small businesses impacted by COVID-19. The loans could be forgiven if used for payroll, rent, utilities and other approved expenses. While PPP provided a lifeline for many companies, allegations of fraud have emerged. Some business owners are accused of making false statements on applications or misusing the money. If you’re being investigated or charged with PPP fraud, consulting an experienced defense attorney right away is critical.
Common Types of Alleged PPP Loan Fraud
Some common PPP fraud accusations include:
- Exaggerating payroll expenses or number of employees on the application
- Using funds for unauthorized expenses instead of approved costs like payroll and rent
- Claiming payroll for fake employees or shell companies
- Applying for multiple PPP loans through different lenders
- Failing to disclose criminal history or pending charges on the application
- Falsifying records to make it look like funds were used properly
PPP fraud can lead to civil and criminal consequences. The Small Business Administration may seek repayment of the loan, damages, and disbarment from SBA programs. Criminal charges could include wire fraud, bank fraud, false statements, or money laundering. Penalties can be severe – multi-year prison sentences and large fines.
Building an Effective PPP Fraud Defense
Defending against PPP fraud requires an experienced federal criminal defense attorney. Key elements of an effective defense include:
- Thorough investigation – Your lawyer gathers documents, interviews witnesses, reconstructs events to identify weaknesses in the prosecution’s case.
- Analyzing intent – Most PPP charges require intent to defraud. Your attorney can argue you acted in good faith without criminal intent.
- Leveraging unclear PPP rules – Rules were unclear early on which your lawyer can use to your advantage.
- Negotiating with prosecutors – Your lawyer may negotiate dismissal of charges or reduced penalties pre-indictment.
- Suppressing evidence – If evidence was obtained illegally, your attorney can file a suppression motion.
- Taking case to trial – If charges aren’t dismissed pre-trial, your lawyer defends you before a judge and jury.
After examining the prosecution’s evidence and theories, an experienced lawyer crafts a defense strategy tailored to your specific case.
Common PPP Fraud Defenses
Some common PPP fraud defenses:
- Lack of intent – Arguing any misstatements were unintentional mistakes, not intentional deception.
- Good faith – Asserting you tried in good faith to comply with unclear PPP rules.
- No knowledge – Claiming any wrongdoing was done without your knowledge by an employee or third party.
- Reliance on accountant – Arguing you relied on your accountant’s advice about eligibility, expenses, etc.
- Loan forgiveness – Showing the loan has been forgiven, negating any loss.
- Selective prosecution – Proving you were unfairly singled out compared to other PPP recipients.
An experienced lawyer assesses which defenses fit your unique circumstances and are most likely to succeed.
Christine Twomey
2024-03-21
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Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
TaĂŻko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.
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2024-03-12
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2024-03-12
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2024-02-28
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divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way.
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I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence.
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If You’re Under PPP Fraud Investigation
If you learn you’re being investigated for possible PPP fraud, it’s essential to:
- Not speak to investigators without your lawyer present.
- Politely decline to answer questions and assert your right to counsel.
- Gather and preserve all documents related to your PPP loan application and use of funds.
- Consult an experienced federal criminal defense lawyer right away.
- Follow your lawyer’s advice about responding to subpoenas or requests.
- Have your lawyer interface with investigators for you going forward.
A skilled PPP fraud defense attorney can often resolve an investigation before charges are filed. Don’t wait to engage counsel if you learn you’re being scrutinized.
Why Hiring the Right Lawyer Matters
Retaining an experienced federal criminal defense lawyer is critical for PPP fraud accusations because:
- PPP fraud cases involve complex federal lending laws and regulations.
- Early PPP rules were vague and changed frequently.
- Prosecutors often aggressively pursue PPP fraud cases.
- Potential penalties are severe – multi-year prison sentences.
- Your lawyer’s negotiation skills could mean the difference between prison or avoiding charges.
An experienced PPP fraud defense lawyer has the skills to protect your rights, avoid conviction, and achieve the best possible outcome.