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Covid Loan Fraud Defense Attorney
Are you facing charges of Covid loan fraud? Lying, misrepresentation, and/or misuse of funding obtained through a COVID-19 relief funding program is a serious crime. A covid loan fraud defense fraud attorney will need to build a strong case to beat these serious allegations.
What are the COVID Loan Programs?
The United States Govenrment and Small Business Association developed COVID loan programs to help American businesses survive the Coronavirus pandemic 2020. There were several loan and grant programs developed to address devastating financial issues, including payroll and revenue losses.
Types of Covid Loan Programs:
- Economic Injury Disaster Relief Loan (EIDL)
- Payment Protection Program Loan (PPP)
- Restaurant Revitalization Fund
- Shattered Venues Grant
The US Government also assisted borrowers by providing extensions to existing loans and debt relief through loan payments.
What is Covid Loan Fraud?
Making false statements, misrepresentation, and/or other forms of deceit to obtain funding through a Covid loan program is considered fraud. These fraudulent crimes could occur though several instances.
Examples of Covid Loan Fraud:
- Making false statements on applications to obtain approval for Covid loan program funding.
- Creating a fake business to apply for Covid loan programs.
- Providing false payroll data to obtain exaggerated funding in a PPP loan.
- Misrepresentation of revenue to obtain exaggerated funding in an EIDL loan.
- Misuse of any Covid loan program funding.
James Polzin, 48 of Arizona, was convicted for fraudulent obtainment of millions of dollars from the PPP loan and Economic Injury Disaster Loan programs. Polzin was sentenced to 4 years in federal prison and has been ordered to pay over $2.2 million in fines.
Is Covid Loan Fraud a Federal Offense?
Covid loan fraud is a crime against the United States Federal Government. These crimes are serious and automatically prosecuted in a federal courtroom. The United States Federal Court System employs the toughest prosecutors and pursues maximum penalties.
Oftentimes, government agencies will investigate potential fraud cases for an extended period of time to gather evidence before pursuing cases. This may result in several charges concurrent charges prosecuted in a single case.
What Penalties Could Result from Covid Loan Fraud?
Penalties for a conviction for Covid loan fraud could be potentially devastating. The extent of these penalties will depend on the specific charges, amount of money involved, and your unique criminal background.
Potential Penalties for Covid Loan Fraud:
- A conviction for intentionally making false statements on a loan application and/or bank
fraud could result in up to 30 years behind bars and $1 million dollars in fines.
- A conviction for making false statements to the SBA could result in 2 years behind bars and a fine of up to $5,000.
- A conviction for making false statements to any government agency would result in up to 5 years behind bars and fines of up to $250,000.
The majority of Covid loan fraud cases involve multiple charges that may result in exacerbated penalties. The consequences for these serious convictions may include prison sentences, fine, and personal and professional repercussions.
Contact Gregg Gallian for a Covid Loan Fraud Defense Attorney
Gregg Gallian is a former prosecuting attorney. His experience in a federal courtroom provides him with the inside knowledge to fight for his clients. Reach out immediately to discuss your case if you are facing allegations for Covid loan program fraud.