How Borrowers Can Protect Themselves From Paycheck Protection Program Fraud Prosecutions

COVID-19 has had an unprecedented impact on the national economy, prompting government economic stimulus of historic proportions. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided monetary aid relief to millions of Americans and included the Paycheck Protection Program (PPP) forgivable loans.With over $600 billion pumped into the economy in 2020 and additional $284.5 billion in PPP funding in the December 27, 2020 legislation, the PPP is ripe for fraud.  This fact has not escaped the Department of Justice (DOJ), and the government has already begun investigating and prosecuting civil and criminal PPP fraud cases.

Civil and Criminal Prosecutions

There is no shortage of criminal statutes under which these cases can be prosecuted. These include those cited in the PPP applications for false statements (18 U.S.C. §§645, 1001 and 1014) and others including wire fraud, mail fraud, submitting false claims to the government, conspiracy and many more.