Criminal Defense Lawyers

Tampa PPP – SBA – EIDL Loan Fraud Lawyers

Tampa PPP – SBA – EIDL Loan Fraud Lawyers: A Guide for Small Business Owners

The COVID-19 pandemic has hit small businesses hard. Many have struggled to stay afloat amid lockdowns, reduced business, and health concerns. The federal government stepped in to help through programs like the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), and others. While these programs have been a lifeline for some companies, they’ve also come with ample opportunity for abuse and fraud.If you’re a small business owner who has applied for or received COVID-19 relief funds in Tampa, you could find yourself under scrutiny. Federal investigators and prosecutors are ramping up efforts to crack down on PPP, EIDL and other fraud. But just because you’re being investigated doesn’t necessarily mean you’ve done anything wrong.This guide will walk you through the key fraud risks with COVID business loans and grants. It will also give you a crash course on your rights if you find yourself accused of Tampa PPP, SBA or EIDL fraud. Let’s get to it.

The Main Areas of Concern with COVID Business Loans

There are a few key ways that PPP loans and EIDL grants could be considered fraudulent by investigators:

Inaccurate Information on Applications

When you applied for PPP or EIDL funds, you had to certify that all the information you provided was truthful. That includes things like:

• Your number of employees
• Monthly payroll expenses
• Revenue losses due to COVID-19

If you fudged any of those numbers to get bigger loans or grants, you could be accused of fraud.

Misusing Loan Funds

PPP loans came with strict rules on how you could spend the money. It had to be used for payroll, rent, mortgage interest and utilities. Spending it on anything else—like personal expenses—is a red flag for fraud.The same is true if you got the loan, but didn’t actually have eligible business expenses to spend it on. Investigators will want to know why you applied for more than you needed.

Multiple Loans for the Same Business

You were only allowed to get one PPP loan per business. If you applied for and got multiple loans for the same company, that’s a problem. It doesn’t matter if it was from different lenders.

Loan Forgiveness Fraud

To get your PPP loan forgiven, you had to submit documentation showing you spent the funds on eligible expenses. If you falsified those records in any way, that’s fraud.

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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Identity Theft

This one is especially serious. It involves using someone else’s name or business information to apply for loans or grants they aren’t entitled to. Penalties are severe.As you can see, there are plenty of ways legitimate business owners can make missteps and end up facing accusations. Just because you’re being investigated doesn’t mean you actually committed fraud.

Why COVID Business Loan Fraud is Being Crackdown On

In the rush to get emergency aid out to struggling companies, the approval process for PPP loans and EIDL grants was streamlined. This lack of safeguards left the programs wide open to abuse.The federal government allocated over $800 billion in COVID relief funds for small businesses. Unfortunately, a chunk of that money ended up in the hands of fraudsters. Some estimates suggest PPP fraud alone could top $80 billion.With that much taxpayer money at stake, the federal government is motivated to hunt down and prosecute fraud aggressively. The U.S. Department of Justice (DOJ) has already charged hundreds of individuals with PPP and EIDL fraud. And they say that’s just the beginning.The DOJ isn’t the only agency paying close attention to COVID business loans. The Small Business Administration (SBA) Office of Inspector General (OIG) is also auditing loans and referring cases for criminal investigation. So are federal inspectors general for the Treasury Department and other agencies.At the state level, attorneys general are ramping up prosecutions too. In Florida, AG Ashley Moody has been vocal about going after COVID relief fraudsters. Her office has already filed numerous charges for PPP, EIDL and unemployment fraud.With so many different agencies and prosecutors on the hunt, the risks are high if your business got COVID relief funds. But the good news is, an investigation doesn’t necessarily mean you’ll be charged. There are ways to defend yourself.

Your Rights if You’re Being Investigated for Tampa PPP or EIDL Fraud

Let’s say the SBA requests your loan documentation or federal agents show up wanting to interview you. What should you do?

Don’t Panic

The first thing is: don’t panic. Realize that law enforcement and regulators conduct investigations all the time. That doesn’t automatically mean you’ll be charged or prosecuted. There are many legitimate reasons why your loan could get flagged for review.For example, let’s say you made a mistake calculating payroll costs on your PPP application. You explain the situation to investigators and provide corrected documentation. If it was an honest error, they may close the case without pursuing charges.

Get Legal Help ASAP

Still, you shouldn’t take any investigation lightly. The risks are real, so it’s critical to get experienced legal counsel on your side immediately. A Tampa PPP fraud defense lawyer can protect your rights and interests from the moment you’re contacted.An attorney can deal with investigators directly so you don’t have to. They’ll ensure proper process is followed and prevent you from accidentally making statements against your own interests. Your lawyer can present evidence and make the case that charges aren’t warranted.If charges do get filed, a skilled fraud defense attorney can thoroughly analyze the prosecution’s case and build an aggressive defense. This is critical, because COVID loan fraud charges can lead to devastating penalties if not properly defended.

Understand Your Fifth Amendment Rights

You always have the right to remain silent when dealing with federal agents or investigators. They hope to pressure you into making incriminating statements they can use against you. Your attorney will advise you to keep quiet.That’s because anything you say can potentially be used to build a fraud case, even if you think you’ve done nothing wrong. So don’t try to talk your way out of the situation. That’s your lawyer’s job.