201-470-4181DECEMBER 22, 2020
Second Round Paycheck Protection Program (PPP) for Small Business Owners was approved.
By N.A. Pagliara, Esquire of Pagliara Law Group, P.A. posted in Consumer Law Blog, on Tuesday, December 22, 2020.
The Paycheck Protection Program (PPP) was signed into law on March 27, 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP loan program was designed to help small businesses remain operational during the economic hardships created by COVID-19. The PPP is operated through the Small Business Administration (SBA) and was designed to help small businesses with up to eight (8) weeks of payroll costs, mortgage interest payments, rent, and utilities.
The second round amount of $284 billion for small businesses through the SBA’s forgivable relief loan – the Paycheck Protection Program – or PPP was included in the new stimulus relief bill. The President just has to sign it into law. The PPP loan provides stability during the ongoing COVID-19 crisis and helped support employees and utilities that make vital services happen every day. However, the first time around there was little to no government oversight and rampant fraud with banks. Many banks told businesses that they could use it on Independent contractors and that was not true. An independent contractor is not an employee. Do not rely on banks to give you legal advice that can get you into trouble as some are in the first round of PPP money. In fact, a new Inspector General Report found that the SBA gave out at least $43 million dollars nationwide to companies who were not eligible for PPP money. Many companies cheated in the first round. Consult a knowledgeable attorney at Pagliara Law Group at 201-470-4181 or email us for your free confidential evaluation for the second round of PPP.
The attorneys at Pagliara Law Group can help in 3 different ways.
- Criminal defense of any crimes associated with PPP Fraud in New Jersey.
- Whistleblower Claims related to PPP Fraud
- Assistance in advising on properly and legally applying for the second round of PPP assistance.
The new stimulus plan allows businesses who already got a PPP loan, to apply again for this second round of PPP money if they can show losses of 25% or higher in 2020 compared to last year.
1. Were you charged with a crime in New Jersey related to PPP FRAUD? (CRIMINAL)
A Texas entrepreneur allegedly submitted fraudulent PPP loan applications obtaining over $1.6 million for two entities that neither had the employees claimed on the application and did not have any payroll expenses.
A Florida resident was charged with wire fraud, healthcare fraud, making false statements to a financial institution, money laundering and conspiracy that he allegedly fraudulently obtained PPP and other COVID-19 relief funds by charging his clients “thousands of dollars for chiropractic services under false pretenses.”
One man in New Jersey a few months ago was alleged to have submitted three fraudulent PPP loan applications to three different lenders on behalf of three different businesses that purportedly provided educational services. He allegedly lied about having hundreds of employees, manipulated bank and tax records, and created a driver’s license on the applications. He represented to the lenders that the companies controlled by him had hundreds of employees and paid over $3 million in monthly wages. Based on his alleged misrepresentations, each lender funded each of the three businesses with an approximately $3 million PPP loan. He received a total of $9 million dollars in PPP funds meant for distressed small businesses. He allegedly used the PPP loan proceeds to pay for numerous personal expenses, including to buy, among other things, a nearly one million-dollar residential home and to invest millions more in the stock market. A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If You were charged with a crime related to Fraud with PPP money in anyway even if it was an innocent mistake based on what a bank employee told you, consult a aggressive and relentless attorney at Pagliara Law Group Criminal Defense division at 201-470-4181 or email us for your free confidential evaluation.
2. Paycheck Protection Program (PPP) Fraud Whistleblower Attorney (CIVIL)
If you or a loved one has knowledge about fraudulent claims related to coronavirus aid, our attorneys can help. We know that coming forward with allegations of fraud against an employer or associate may be difficult, but we can help protect you from retaliation and, in some cases, get you a portion of the government’s recovery under a qui tam suit.
Consult a knowledgeable attorney at Pagliara Law Group at 201-470-4181 or email us for your free confidential evaluation for a possible Whistleblower claim and get paid a percentage.
Paycheck Protection Program and the CARES Act
The CARES Act provided over $2 trillion of economic relief to individuals and small businesses as mandatory shutdowns caused by the novel coronavirus began to deeply impact the economy. The CARES Act included direct Economic Impact Payments of $1,200 to adults making less than $99,000 and up to $500 per child.
In addition to stimulus payments, the CARES Act provided several measures to assist small businesses in covering overhead and maintaining their payroll. $659 billion was authorized for the Paycheck Protection Program, which gave loans through the SBA. PPP loans have an interest rate of 1%, and small businesses meeting specific qualifications are eligible for loan forgiveness. Small business owners were also able to apply for Economic Injury Disaster Loan advances of up to $10,000 and apply for a number of tax credits as part of the CARES Act. The CARES Act was explicitly designed to provide relief for those hit hardest by COVID-19, including sole proprietors, non-profit organizations, and small businesses meeting the SBA’s size standards.
Types of PPP Fraud
PPP fraud can take many different forms. Current fraud investigations filed by the DOJ and OIG include:
- Submitting a fraudulent PPP loan application
- Falsifying tax documents
- Applying for multiple PPP loans
- Misrepresenting an economic hardship created by COVID-19
- Falsifying a loan forgiveness application
- Misuse of PPP funds
These are only two of the dozens of ongoing investigations related to COVID relief fraud. The Pandemic Response Accountability Committee provides oversight and publishes information related to these cases.
Fraudulent Use of PPP Funds
A common form of PPP fraud is the misuse of funds. Not only do people falsify documents to obtain the loans, they then use the fraudulently obtained loan proceeds for their own personal benefit. Economic relief through the CARES Act was designed to help those most significantly impacted by the novel coronavirus. Under the Act, funds must be used for payroll costs, mortgage interest payments, rent, or utilities.
The Department of Justice announced a 10-count indictment against a Virginia man who allegedly fraudulently obtained $190,000 in COVID-19 relief funds and then converted approximately $140,000 of those proceeds into cash or cashier’s check for his own personal gain.
Other indictments throughout the country allege that PPP proceeds were used to make lavish personal purchases, including sports cars, real estate, and jewelry. Regulatory agencies continue to crack down on these abuses and rely on tips from private citizens to vigorously prosecute these cases.
Whistleblower Protections
Federal law protects individuals who report fraud and may provide compensation for your information. Whistleblowers who have intimate knowledge or evidence about an entity’s attempt to defraud the government may be eligible to receive a portion of the government’s recovery through a qui tam suit under the False Claims Act. Many federal fraud charges are brought under 31 U.S.C §§ 3729 – 3733, the False Claims Act (FCA). The FCA allows private citizens to file a lawsuit on behalf of the government and may entitle them to up to 30 percent of the recovery.
Retaliation against a person who reports fraudulent behavior is unlawful. Employees who bring whistleblower claims are protected by state and federal law from retaliatory firing or punishment.
At Pagliara Law Group, our New Jersey PPP fraud attorneys will ensure that you are protected under whistleblower statutes. We know that you are taking risks coming forward, but your honesty and integrity are protecting millions. Whether you have knowledge about your employer’s misuse of funds or someone’s false PPP application, our lawyers can help. Call today for more information and to report COVID relief fraud to the proper authorities.
Coronavirus Stimulus Fraud
As soon as stimulus payments were announced, reports of fraud began to emerge. People posing as Treasury Department representatives began calling individuals asking for personal financial information or claiming they needed an advance fee, fraudulently obtaining thousands of dollars from those who needed it most.
As reported by the U.S. Department of Treasury, stimulus fraud can occur via phone, email, or U.S. Postal Service. If you believe that you are the victim of coronavirus stimulus fraud or have witnessed a form of fraud, you may be entitled to compensation. We can assist you in filing the proper claims and obtaining recovery.
Common forms of stimulus fraud include:
- Healthcare fraud
- Fake check scams
- Cryptocurrency fraud
- Offers to sell fraudulent Personal Protection Equipment (PPE)
- Medicare fraud
- Hoarding or price-gouging
- Unemployment benefit fraud
Our New Jersey PPP Fraud Whistleblower Attorney’s Are here to help
During these difficult times, it is hard to imagine that people would take advantage of relief funds designed to help those devastated by the coronavirus. Tragically, fraudulent schemes continue to be uncovered by regulatory agencies. You have the right to report any suspicious activity from your employer or another entity without retaliation.
Depending on the circumstances, reporting PPP or stimulus fraud may entitle you to a portion of the government’s recovery. The U.S. Attorney’s Office has published dozens of cases related to COVID relief totaling millions of dollars in ill-gotten gains. Disaster-related fraud takes money directly from those who it is intended to help and can be stopped with your help. Our knowledgeable attorneys will help you report suspected fraud to the appropriate authorities and ensure your protection from retaliation.
When you contact our office, the consultation is 100% confidential. It is essential not to discuss the information with anyone except your attorney to protect your rights and your potential for recovery. The information you provide to our office will remain protected, helping to ensure that your lawsuit will go forward and not be dismissed.
3. We Can help in the Application process for the Second Round PPE Funds.
There will be major oversight this time. Do not rely on bank employees to advise you on the process as they are not attorneys. The application and use of the funds can be convoluted and confusing to some. Speak to an attorney to advise you on the application process and the use of PPE funds this time around.
You must spend the PPP proceeds on 60% on payroll and 40 % on other such as to enhance the office to make it safer.
Tags: Second Round, PPP, SBA, Paycheck Protection Program, Small Business Owners, Qui Tam, Fraud, Whistleblower, Criminal Defense
