Let's Change The Outcome

The CARES Act and Paycheck Protection Program (PPP) Fraud

The CARES Act was designed to help people and businesses survive through the Covid-19 pandemic. With it came the PPP, or Paycheck Protection Program. This specific item was created to provide financial support to small businesses based on their monthly expenses, number of employees, etc.

We know that a program like PPP can be easy for some small business owners to abuse as seen with the TARP (Troubled Asset Relief Program) of 2008. People abused TARP, and we are starting to see PPP fraud pop up.

Two New England businessmen attempted to get more than $545,000 in PPP loans. However, their businesses were not operating before the COVID-19 pandemic. Another businessman in Texas sought to receive more than $5 million for his 400 employees, the vast majority of which were not real and had names created by an online name generator. Patricia Hines, head of corporate banking at Calent, a research and advisory firm, said to Banking Dive, “…it’s very difficult to validate employees … The credit bureaus validate lots of things about the information on loans, but we’ve never had a way of measuring, for instance, payroll amounts or the number of people on the payroll.”

While these circumstances make it a lot easier for people to commit fraud in order to receive a higher loan, business owners are getting caught for their actions. These cases are going to become much more relevant and common in the courts. After all, the likelihood of only three people in the United States exploiting this system is fairly unlikely. Assistant U.S. Attorney General Brian Benczkowski told Bloomberg earlier this month that 15 to 20 of the largest loan processors have been contacted and have seen proof of applicants exaggerating payroll costs or employee counts. We know that millions of dollars were awarded right here in Greenville, and our courts may not be exempt from PPP fraud cases. As a firm with dedicated lawyers, [nap_names id=”FIRM-NAME-1″] is available to discuss your case.


Recent Posts

How can a DUI conviction impact my commercial driver’s license?

On Behalf of Ryan Beasley Law | Apr 8, 2022 | Drunk Driving | Commercial vehicles are a common sight on the South Carolina roads. Trucks go to, from and through the state delivering and carting items that are vital to everyday life. This can include food, materials,...

What defenses are there for domestic violence charges?

Every relationship has times when you and your partner will disagree. An argument can feel very after both parties have had a chance to cool off than it does while it is happening. In some cases, a disagreement can get out of hand or misinterpreted, leaving both...

How a DUI can threaten your college education

College is an exciting time for young adults. Newfound independence often comes with having to make important decisions on your own, including whether to drink and drive. Unfortunately, millions of college students choose to drive while intoxicated. While you may be...

Bill could lead to harsher penalties after drug overdoses

In South Carolina and across the United States, opioids are garnering significant attention. This is understandable given the number of people who are having problems with these types of drugs. Specifically, fentanyl is drawing scrutiny from state and federal law...

Do you know the importance of jury selection in your case?

There’s a lot to consider when building your criminal defense. While you may want to work with prosecutors early on to try to mitigate the fallout from your case, and you certainly want to gather evidence that contradicts the prosecution’s case, you can’t neglect the...

Do You Need Legal Advice? Don’t Wait.

Get Help Now


Visit Our VIDEO CENTER To Find Out More