Ohio PPP – SBA – EIDL Loan Fraud Lawyers

Navigating PPP and EIDL Loan Fraud Charges in Ohio

The COVID-19 pandemic brought unprecedented economic challenges for small businesses across Ohio. To provide relief, the federal government offered loans like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. While these loans threw a critical lifeline to many businesses, some applicants unfortunately abused the programs. Now, federal prosecutors are cracking down on PPP and EIDL fraud through criminal charges. If you’re facing accusations of loan fraud, it’s essential to understand your rights and explore all legal defenses. This article provides an overview of Ohio PPP and EIDL fraud laws, potential penalties, and defense strategies.

Common Types of Alleged Fraud

Prosecutors are pursuing charges for a wide range of potentially fraudulent activities, including:

• Submitting false information on loan applications like inflated payroll numbers or non-existent employees
• Using PPP funds for non-eligible expenses like personal purchases instead of payroll
• “Double dipping” by applying for multiple loans through different lenders
• Lying about having an existing business to obtain EIDL loans
• Failing to disclose criminal history or pending charges to obtain loans

While some cases involve deliberate deception, others arise from misunderstandings about complex program rules. Skilled defense lawyers can often show prosecutors that alleged fraud was unintentional.

Applicable Federal Laws

Prosecutors typically charge PPP and EIDL fraud under the following federal statutes:

• Wire Fraud – Using interstate wires or communications to execute a scheme to defraud (18 USC § 1343)
• Bank Fraud – Knowingly executing or attempting to execute a scheme to defraud a financial institution (18 USC § 1344)
• False Statements – Knowingly making false statements in loan applications or documents (18 USC § 1001)
• Aggravated Identity Theft – Knowingly using another person’s identification during fraud (18 USC § 1028A)

These charges often carry severe penalties like multi-year prison sentences and steep fines. However, the complexity of PPP and EIDL program rules creates openings for defense lawyers to argue their client’s innocence.

Building an Effective Legal Defense

If you’re charged with PPP, EIDL, or other COVID relief fraud in Ohio, an experienced white collar defense lawyer can protect your rights and future. Here are some strategies they may use:

• Contesting intent – Showing you misunderstood complex program rules rather than deliberately committing fraud
• Challenging evidence – Identifying flaws in the prosecution’s documents or witnesses
• Negotiating plea deals – Seeking reduced charges or probation if some wrongdoing occurred
• Cooperating with authorities – Providing information about others involved in exchange for leniency

An attorney can also put your case in context, arguing that COVID caused desperation and confusion versus intentional criminality. They may also advocate for no jail time and the lowest financial penalties possible.

Choose an Attorney Carefully

Building an effective defense against PPP or EIDL fraud allegations requires an attorney with specialized skills and experience, including:

• In-depth knowledge of federal lending programs and regulations
• Relationships with prosecutors to facilitate cooperation and plea deals
• A track record getting charges dismissed or reduced
• Familiarity with federal sentencing guidelines
• Ability to humanize you and tell your story sympathetically

Don’t leave your defense to chance – consult an accomplished Ohio fraud defense lawyer for personalized guidance. With an experienced attorney on your side, you can mitigate penalties and protect your future.