COMMON DEFENSES FOR COVID LOAN FRAUD
COVID LOAN FRAUD
COVID LOAN PROGRAMS INCLUDE:
- Payment Protection Program (PPP)
- COVID Unemployment Relief
- Economic Injury Disaster Program
- Other CARES Act Relief Program
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.
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.
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.