Dallas PPP Loan Fraud Attorneys

Why You Need a Competent PPP Loan Fraud Defense Attorney

The COVID-19 pandemic was an economic disaster as well as a national health crisis. Many familiar establishments, like local restaurants and bars, had no choice but to close their doors for quite some time. This unfortunately meant that many people were suddenly out of work and had no way to keep paying their bills. In this challenging economic climate, losing a job even temporarily meant that a person would not be able to pay their rent or utilities or even afford food for their families. The government began offering Paycheck Protection Program loans in order to help those hit the hardest stay afloat financially during the crisis. A large number of small businesses and other companies were able to apply for this form of assistance.

Due to the abrupt and unplanned nature of the pandemic and our government's response to it, there was a great deal of confusion about these loans and how they worked. You may not have fully understood whether you were eligible or what the loans were to be used for - or how and when you would need to pay them back. Some individuals have now found themselves in legal trouble for PPP loan fraud, which is a serious offense. If you are one of these individuals, it is important that you speak to an attorney as soon as possible. A conviction of this nature could change your life in a serious way.

What Is PPP Loan Fraud?

PPP loan fraud covers a wide range of conduct committed by small business owners or other parties. It is considered a serious federal white collar crime. It is important to understand how the Paycheck Protection Program was intended to work. Small business owners, qualified charities or Veterans' organizations, and even some self-employed individuals could apply for these loans.

For small businesses and other organizations, PPP loans were meant to help the business owner continue paying their employees and keep up with the expenses of keeping a business open, such as rent for a storefront, during a time of economic crisis. When these small business loans were used for acceptable purposes and employees were kept on payroll, they could be entirely forgiven.

However, using PPP loan money for other purposes can lead to a fraud charge. A small business owner may have been facing economic hardship and used PPP loan funds for personal expnses rather than business purposes. While people in thse situations may have acted out of desperation rather than greed, the federal government may still choose to levy charges against a business owner who misappropriated these disaster relief funds. If you are facing these types of charges, you may also face asset forfeiture if the government believes that you purchased goods for yourself using PPP money.

There are a variety of reasons why individuals may be charged with PPP loan fraud. It is understandable that in a time of crisis, people were willing to do anything in order to provide for themselves and their families. A person may have omitted important information on their application or misrepresented something about their financial status. This may have been entirely unintentional. However, the government may still choose to pursue charges in these situations.

If you are facing PPP loan fraud charges, the best thing you can do to protect yourself is to involve an attorney as soon as possible. Even if you have not been charged but suspect you are under investigation, an attorney can begin taking steps to help you right away.

Contact a Dallas, Texas PPP Loan Fraud Attorney

Spencer & Associates is experienced in defending people who have been accused of federal white collar crimes. Our skilled PPP loan fraud lawyer will do all he can to represent you zealously during criminal proceedings. Contact us at 214-385-8500 for a free consultation.