Royal Oak PPP Loan Fraud Defense
Federal authorities continue to investigate alleged Paycheck Protection Program (PPP) loan fraud years after pandemic relief funds were distributed. If you face an investigation, attorney Barry A. Resnick brings over 50 years of criminal law experience, including eight years as a Wayne County prosecutor, to your defense. Operating from our Royal Oak office, our legal team represents business owners and residents across Detroit and southeast Michigan. Contact a Royal Oak PPP loan fraud attorney immediately if you suspect you are under investigation.
Common Types Of PPP Loan Fraud Allegations
Even years after the COVID-19 pandemic ended, government investigators actively target individuals who received these emergency funds. They often claim that business owners intentionally deceived the government to secure additional funding. You need a skilled PPP fraud defense lawyer to challenge these claims, as prosecutors must prove you possessed criminal intent.
- Submitting false payroll records to inflate the loan amount.
- Listing fabricated employees or utilizing nonexistent shell companies.
- Using identity theft to apply for funds under another individual’s name.
- Submitting multiple loan applications to different financial institutions for the same business.
- Filing fraudulent loan forgiveness applications with deceptive financial data.
Prosecutors examine your original application details meticulously to uncover these discrepancies. They will trace every bank transfer and analyze every tax document to build a case against you.
Potential Federal Charges Related To PPP Loan Fraud
A single SBA loan audit can lead to multiple serious federal criminal charges. The government rarely charges an individual with just one offense; instead, prosecutors often levy multiple counts to increase their leverage.
- Wire fraud: Transmitting false applications over the internet.
- Bank fraud: Deceiving the financial institutions that disbursed the funds.
- False statements: Making untruthful assertions to federal agents or the Small Business Administration.
- Conspiracy: Planning a loan scheme with another individual.
- Money laundering: Moving loan proceeds through various accounts to conceal the source.
An experienced SBA loan fraud attorney knows how to counter these overlapping federal charges by analyzing the government’s evidence to uncover weaknesses in their narrative.
What Should You Do If You Are Under Investigation?
If federal agents target your business, you must act decisively to protect your rights. Start by remaining calm. Next, preserve all financial documents, emails and payroll records exactly as they are. Never destroy or alter any files, as this can lead to separate obstruction of justice charges. Most importantly, do not speak to investigators or answer questions without legal counsel present. Hire a COVID relief fraud defense attorney immediately to handle all communications with the government on your behalf.
Your PPP Fraud Investigation Questions Answered
Business owners under PPP review often raise the same concerns early in the process. You can find answers to several of them in the following section:
What should I do if federal agents contact me about a PPP loan?
Politely decline to answer questions and tell the agents your attorney will contact them. PPP cases often involve the FBI, IRS Criminal Investigation or the SBA Office of Inspector General. One wrong answer can lead to a separate false statement charge under 18 U.S.C. Section 1001. Staying quiet protects you. If agents hand you a subpoena or target letter, do not ignore it. Keep every record exactly as it is, then let us handle all communication with investigators. Because our founding attorney spent eight years as a Wayne County prosecutor, we know how agents build these cases from the first interview.
Does a PPP loan audit mean I will face criminal charges?
Not necessarily. Many SBA loan reviews end in repayment or a civil resolution, such as a False Claims Act settlement, rather than an indictment. Prosecutors usually file criminal charges when they believe a borrower knowingly lied on a loan or forgiveness application.
Still, federal law now gives the government 10 years to bring PPP fraud charges, which is double the five-year limit for many federal white-collar offenses. An audit that arrives years after your loan deserves careful attention. With your attorney’s help, sending the SBA accurate records early can sometimes stop a review from turning into a criminal case.
Can I be charged with more than one crime in a PPP fraud case?
Yes. Prosecutors often file a separate count for each application, wire transfer or forgiveness request. Bank fraud alone carries up to 30 years in federal prison. Using another person’s identity can add aggravated identity theft, which brings a mandatory two-year prison term on top of any other sentence. Prosecutors may also seek forfeiture of property bought with loan funds. Each added count raises the stakes at sentencing. We examine each federal charge on its own to find weak points in the government’s case.
Protect Your Rights Today, Contact Us Today
An investigation does not automatically mean you will be convicted. However, federal investigators move quickly, and you cannot afford to wait. Contact the Law Offices of Barry A. Resnick, PLLC, today at 248-419-1035 to schedule a free confidential consultation with a trusted Michigan PPP loan fraud lawyer.