Department Of Justice Cracking Down On PPP Loan Fraud

Written by Brian P. Hamachek on 5/21/2021
SBA PPP

The Department of Justice is moving quickly when it comes to prosecuting those accused of fraudulently obtaining PPP loan money, set aside for struggling businesses. The federal Paycheck Protection Program (PPP), established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, provided a total of $934 billion in funding to companies impacted by the COVID-19 pandemic. Of the near trillion dollars provided by The Act, it is suspected that several billion have been given to illegitimate companies, claiming to be something they are not. More recently, into 2021, the DoJ has made it clear that they are widening the criteria for prosecution. Regardless of the size of the company, the DoJ is actively going after the individuals and large corporations that have misrepresented themselves with the intent to receive funds they otherwise would be ineligible for. To date, the department of justice has pursued cases against large companies receiving multi-million dollar loan disbursements as well as individuals caught lavishly spending the funds on expensive cars and luxury vacations. With so much uncertainty still looming, the government has made one thing clear- they have little sympathy for those accused of fraudulently obtaining PPP loan money and plan to prosecute those individuals and corporations to the maximum extent allowed by the law.

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