Criminal Defense Lawyers

PPP Loan Fraud & Whistleblower Defense

The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) that was passed in the spring of 2020. The original deadline for businesses to apply for these loans was June 30, then it was extended to August. The program reopened for more applications in January 2021. Rumors about PPP fraud resulted in the Small Business Administration (SBA) asking whistleblowers to report misuse of the funds. We defend companies that are under investigation for fraud related to PPP loans.

SBA Audits
The SBA is auditing recipients of PPP loans in order to find cases of fraud. If evidence of fraud is detected, the Department of Justice pursues the case in federal court. If your company got one of these loans, you could be facing federal loan fraud charges. It’s important to get legal representation as soon as possible if your business is under investigation for such charges.

Risks to Your Business from Whistleblowers
The federal government runs several programs under which whistleblowers get a portion of the amount of damages recovered by their prosecution of fraudulent business activities. Under the False Claims Act, whistleblowers can get up to 30% of the damages from the case. The Department of Justice uses the False Claims Act to prosecute a majority of the fraud allegations related to the PPP. The whistleblower who files the first claim, even if it’s a general claim, can get this reward. That’s a big incentive for someone to make allegations against your company.

Could Your Company Fall Victim to PPP Loan Fraud Allegations?
It’s critical to have a strategic defense against any allegation of PPP fraud. We tailor the response to whistleblower lawsuits differently than other types of fraud allegations. The PPP came with many strings attached, and we’ll examine your documentation and books in order to defend your case within the Department of Justice’s prosecution process. We have a clear understanding of how these claims are investigated and prosecuted, and our track record of resolving them will help with your case, too.

Possible Defenses for PPP Loan Fraud Allegations
We use well-established defense strategies against charges from the False Claims Act and other whistleblower laws. Our attorneys use the evidence and find deficiencies in the whistleblower’s argument in order to pursue a result that’s in your favor. Our lawyers may also file a motion to dismiss your case. We present decisive evidence in your favor, such as the whistleblower’s intent to do you harm and evidence that shows you legitimately received and used the PPP loan funds.

Whistleblower allegations are often flawed, and one defense strategy we use is demonstrating that the use of federal resources into the allegations against your business aren’t worthwhile. Getting federal charges dismissed is complicated, which is why it’s wise to choose lawyers with experience in dealing with federal loan fraud cases. We can also assess whether or not it’s in your interest to settle with the government in your loan fraud allegation case.

The Department of Justice is investigating many whistleblower claims of PPP fraud. Many of those cases are international. The limited oversight of the PPP program made it easy for some individuals and companies both in and outside the United States to get funds they weren’t qualified to receive. Whistleblowers know this, too, and many file claims just to see if they can get the reward. If a claim is carefully worded and general, the whistleblower is unlikely to be punished if their allegation is found to be false. With few negatives and a potentially large payoff, a whistleblower may be enticed to file false claims. Our attorneys assess whether this could be a good defense strategy for your company.

PPP Compliance
Our lawyers also help you examine if you’re in compliance with the PPP’s terms. It’s possible that an unintentional error caused your company to misuse funds. By showing that the error was unintentional, our lawyers could help you avoid prosecution.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

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.

Taïko 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. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

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. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. 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. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

Possible Consequences of PPP Loan Fraud Charges
Federal prosecutors may levy fines for convictions related to PPP loan fraud allegations. Some company owners, accountants and chief financial officers have faced decades of federal prison time related to PPP fraud. Just the allegations of fraud could harm your personal reputation and the reputation of your business. If the federal government subpoenas your bank, your funds could be frozen. A frozen business account could result in your company permanently closing its doors. Few companies can do without the cash they have in the bank while they wait out the long amount of time that it takes the federal government to prosecute a loan fraud case.

If you’re facing a PPP loan fraud case or think you’re at risk of such charges, reach out to us at Lawscape today. We offer no-cost initial consultations with our federal defense attorneys.