Answers to the Most Common PPP Loan Fraud Questions
This page contains answers to common questions that apply to most cases of PPP loan fraud. To discuss your case in detail or ask specific questions related to your circumstances, contact our firm. Our PPP loan fraud attorney team provides confidential, no obligation case review. Simply contact our firm and a member of our attorney team handling PPP loan fraud claims will contact you in the near future to answer your questions, completely free of charge.
What is PPP loan fraud?
PPP loan fraud refers to cases where an individual or company obtained federal funds through the CARES Act Paycheck Protection Program as a result of false statements or another kind of deception. PPP loan fraud may result in charges of wire fraud, bank fraud, money laundering and more.
Who is eligible to file a PPP loan fraud case?
Any person or persons who have inside information indicating PPP loan fraud may initiate a case. This may include a current or former employee of a lending institution or company that obtained a PPP loan, or any other individual privy to information of this nature.
How do I file a PPP loan fraud case?
If you believe you have grounds to file a PPP loan fraud case, the first step is to contact an attorney. This can be an intimidating step, but we assure your communication will be confidential. One of our attorneys handling PPP loan fraud will answer any questions you may have during a free, no-obligation consultation. If you choose to file a case, we will support you every step of the way.
What does it cost to file a PPP loan fraud case?
Our PPP loan fraud attorney team is committed to representing all persons involved in a qui tam lawsuit for PPP loan fraud on a contingency basis, meaning there are never any legal fees unless we win compensation in your case. To access your free, no-obligation consultation, use the online chat feature or contact form on this site. A member of our expert whistleblower lawyer team handling PPP loan fraud claims will contact you to answer any of your questions.
Does a person filing a claim need to have full knowledge of all aspects of the alleged PPP loan fraud?
No, the person filing a claim need not have full first-hand knowledge of the alleged PPP loan fraud. If you choose to work with our firm, the first step of the process is an in-depth investigation during which attorneys will gather relevant facts and evidence. During this stage, the case is "under seal" and the whistleblower's identity remains anonymous.
What kind of compensation can I expect from reporting PPP loan fraud?
Successful casess can result in significant compensation for those reporting PPP loan fraud. Under the False Claims Act, the government is entitled to compensation that is threefold the fraud amount. Of this, whistleblowers are awarded with up to 30% of the total compensation. For example, if the claim concerned PPP loan fraud in the amount of $2.5 million, the total compensation may be up to $7.5 million, with more than $2 million in potential compensation for the whistleblower, in addition to other employment protections.
Is there a statute of limitations for PPP loan fraud cases?
Under the False Claims Act, a PPP loan fraud claim must be filed within the latter of two time periods: Either six years from the date of the violation of the fraud, or within three following the time the government knew or should have known about the violation. The maximum statute of limitations is ten years by this federal law. State laws may differ, but any person who reports PPP loan fraud in the near future will fall within the statute of limitations.
What constitutes PPP loan fraud?
Generally, PPP loan fraud includes any false statement made in the loan application or certification process. Reported cases of PPP loan fraud include:
applying for a PPP loan to support payroll for dead or non-existent employees
applying for a PPP loan on behalf of a non-existent company
applying on behalf of a subsidiary of a company too large to qualify
misrepresentation of payroll costs or number of employees
claiming employees who do not reside within the United States
claiming necessity for a company that did not experience losses related to COVID-19
Incidents of PPP loan fraud result in egregious waste of taxpayer dollars and limit the funds available to workers and small businesses in need.
Who is responsible for investigating PPP loan fraud?
Whereas white collar crime investigations typically languish for months or years, PPP loan fraud claims have been investigated with expediency thus far. In anticipation of PPP loan fraud, the CARES Act created a Pandemic Response Accountability Committee to detect mismanagement of funds; the Special Inspector General for Pandemic Recovery is charged with conducting CARES relief audits and investigations.
Does it cost anything for a whistleblower attorney to review my case?
We will always listen to your circumstances and provide an analysis of your case without any cost or further obligation.
What types of protections are in place if I initate a PPP loan fraud case?
There is a certain degree of risk associated with filing a claim of this nature, which is why it is vital to have strong legal representation to ensure you receive the maximum protections provided by the law at each stage of the process. In the beginning, when an individual reports PPP loan fraud under the Fair Claims Act, the case remains "under seal" and the whistleblower's identity remains anonymous. Once the defendant has been informed of the claim, revealing the whistleblower's identity, numerous employment protections are available:
Reinstatement of employment, if fired
Double back pay as compensation for any lost income
Compensation for any special damages including litigation costs and reasonable attorneys' fees
I'm not the type of person who sues; do I really need to file PPP loan fraud claim?
If you have become aware of PPP loan fraud, the only way to safely report it, without risking retribution from your employer, is to file a claim with a whistleblower attorney. Without legal protections in place, you may risk your job or career as a result of reporting PPP loan fraud. We believe abuse of CARES Act relief programs is a serious violation that harms small businesses and taxpayers. Whistleblowers take a risk by reporting PPP loan fraud, and it is the primary goal of our whistleblower attorney team to ensure our clients receive maximum compensation and protections available under the law.
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The Onder Law Firm is a National Law Firm based in St. Louis, Missouri representing clients throughout the United States in national federal MDL products liability litigation.