Common Defenses for COVID Loan Fraud

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COMMON DEFENSES FOR COVID LOAN FRAUD

COVID loan fraud is considered a crime against a government agency. Crimes of this severity are prosecuted under the United States Federal Judicial System. You could face decades behind bars if you are convicted on these serious criminal charges.

A strong legal defense is the only way to fight back against allegations of COVID loan. A COVID criminal defense attorney may utilize several strategies to develop a strong case. In the following informational article, we examine COVID loan fraud and explore the most effective defense strategies against these charges.

COVID LOAN FRAUD

COVID loan fraud is defined as intentional fraudulent statements and/or acts used to obtain funds from several pandemic-related relief programs. COVID-19 Economic Injury Loan programs were offered through financial institutions and the Small Business Association.

COVID LOAN PROGRAMS INCLUDE:

  • Payment Protection Program (PPP)
  • COVID Unemployment Relief
  • Economic Injury Disaster Program
  • Other CARES Act Relief Program

COVID loan fraud is what is known as a white collar crime. These are crimes that are committed solely for financial gain. Despite the fact that white collar crimes are non-violent in nature, a conviction for these crimes can result in steep penalties. Click here to read more about the different types of fraud and potential penalties.

1.) LACK OF INTENT

Lack of intent is a solid defense strategy against COVID loan fraud. There are several elements that are required to exist in a case to constitute fraud.  The prosecution will need to prove that you knowingly and deliberately committed fraud to receive COVID funds.

This is an effective strategy when little evidence of intent is present. A simple mistake does not constitute fraud. For example, if you accidentally made false statements on your COVID loan application and received program funding.

2.) IGNORANCE

Another defense strategy is to admit that you did receive COVID loans funds but were not aware that your behavior was fraudulent in nature. For example, if you were not aware that your business did not qualify for the PPP program and received funding.  

covid loan fraud

3.) YOU ACTED OUT OF FEAR

You may be benefit from the claim that your fraudulent actions were committed out of fear for your own or another individual’s safety. For example, if another person forced you to commit fraud by threatening your life.

This strategy can be effective in cases that involve large sums of money, multiple defendants, or if another individual involved has a criminal history.

COVID LOAN FRAUD LAWYER

Representation from an experienced COVID loan fraud lawyer is the only way to build a defense case to fight these serious allegations. Your lawyer will fight to create reasonable doubt that you obtained gained access to COVID loans funds through fraudulent actions.

An experienced federal criminal defense attorney may be able to help even if there is irrefutable evidence in your case. Your lawyer may be able to work with the prosecution to arrange a plea deal to lesser charges.

COVID FRAUD DEFENSE GALLIAN FIRM, LLC

Reach out to Gallian Firm, LLC today if you are facing charges for COVID loan fraud. Gregg Gallian is am experienced federal criminal defense attorney and has helped hundreds of clients beat serious federal criminal charges.