News & Analysis as of

Fraud Borrowers Department of Justice (DOJ)

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Whiteford

Client Alert: Heightened Enforcement Risk for Ineligible Recipients of Paycheck Protection Program Loans

Whiteford on

The United States Department of Justice (“DOJ”) has intensified civil fraud investigations aimed at borrowers who obtained Paycheck Protection Program (“PPP”) loans despite falling outside the class of entities Congress meant...more

PilieroMazza PLLC

PPP Loans Under the Microscope: False Claims Act and Enforcement Trends

PilieroMazza PLLC on

While the COVID-19 pandemic may feel like a distant memory for many, its effects continue to reverberate for others—particularly for businesses that obtained loans through the Paycheck Protection Program (PPP). Whether...more

J.S. Held

Current Enforcement Efforts in the Battle Against COVID-19 Loan Program Fraud

J.S. Held on

The COVID-19 pandemic caused unprecedented impacts around the world including stay-at-home orders, curfews, quarantines, and economic uncertainty. Businesses across the United States were forced to close their doors, limit...more

Bass, Berry & Sims PLC

COVID-19 Relief Enforcement Actions Highlight Ongoing Risk

Bass, Berry & Sims PLC on

The Department of Justice (DOJ) continues to demonstrate its sustained interest in COVID-19 relief fraud as an enforcement priority and we can expect to see persistent enforcement in this area....more

McDermott Will & Emery

SBA PPP Loan Concerns Linger for Small Businesses

McDermott Will & Emery on

Many small businesses continue to face uncertainty over whether the Small Business Administration (SBA) will grant forgiveness of their Paycheck Protection Program (PPP) loans. Despite the vast majority of small businesses...more

Buchalter

PPP Fraud Enforcement Shows No Signs of Slowing

Buchalter on

After dozens of high-profile criminal prosecutions and a growing wave of civil investigations, the Department of Justice’s (“DOJ”) Covid-19 Fraud Enforcement Strike Force is poised to continue its pursuit of fraud, abuse, and...more

Fox Rothschild LLP

Federal Reserve Board Fines Bank for Processing PPP Loans That Had Signs of Fraud

Fox Rothschild LLP on

In its first enforcement action related to COVID-19 government aid programs, the Federal Reserve Board recently announced that it has fined New York-based Popular Bank $2.3 million for processing Paycheck Protection Program...more

Troutman Pepper Locke

Could PPP Lenders Be Liable for Borrower Misrepresentations?

Troutman Pepper Locke on

On December 8, the U.S. Small Business Administration (SBA) issued a statement regarding its intent to investigate certain participants in the Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and...more

Morrison & Foerster LLP

DOJ Enforcement Actions Involving COVID-19 Relief Fraud: An Update (September 2021)

As the COVID-19 pandemic continues, so does Department of Justice (DOJ) enforcement of COVID-19-related fraud. In our first alert on this topic, in May 2020, we tracked early fraud cases involving the Coronavirus, Aid,...more

Fox Rothschild LLP

Paycheck Protection Program-Related Convictions Result In Harsh Federal Prison Sentences

Fox Rothschild LLP on

The U.S. Department of Justice took several victory laps this month, touting long prison sentences it has secured for COVID-19 related fraud. These prison terms send a clear message to any individual or business that...more

Vinson & Elkins LLP

A Second Wave Of COVID-19 Fraud Enforcement: An Emerging Risk For Businesses

Vinson & Elkins LLP on

On March 26, 2021, the Department of Justice (“DOJ”) issued a press release trumpeting the agency’s “historic level of enforcement action” in response to COVID-19 related fraud. Roughly one year after Congress passed the $2.2...more

Perkins Coie

DOJ’s First False Claims Act Settlement Against PPP Borrower Signals Robust Fraud Enforcement Ahead

Perkins Coie on

As the government revives its Paycheck Protection Program (PPP) with hundreds of billions of dollars in additional loans available to small businesses, there are fresh signs that government fraud investigations and...more

K&L Gates LLP

They Know What You Did Last Summer: DOJ Announces First Civil Settlement Involving PPP Borrower

K&L Gates LLP on

The long-anticipated wave of civil enforcement actions involving participants in the Paycheck Protection Program (PPP) has begun. On 12 January 2021, the U.S. Department of Justice (DOJ) announced the first civil settlement...more

Cooley LLP

Blog: DOJ Announces First Civil Settlement for PPP Fraud

Cooley LLP on

After bringing dozens of criminal charges against Paycheck Protection Program loan recipients in recent months, on January 12, the US Department of Justice announced its first civil settlement resolving allegations of PPP...more

Cozen O'Connor

Google Sued Over Antitrust Allegations | Preview Of 2020 AG Races | Delay Of Generic Humira Challenged

Cozen O'Connor on

2020 AG Elections- A Primer on 2020 State Attorneys General Elections- •Jerry Kilgore, a Member of Cozen O’Connor’s State Attorneys General Practice and former Virginia AG and Secretary of Public Safety, penned an alert...more

Jones Day

Six Months of COVID-19 Relief: Enforcement and Litigation Trends for Borrowers

Jones Day on

An uptick in fraud prosecutions and litigation has historically followed federal crisis relief programs. In addition to this historical trend, the attention fraud related to the novel coronavirus ("COVID-19") has garnered...more

Ballard Spahr LLP

PPP Lenders and Fraudulent Borrowers: False Claims Act Liability and AML Risk

Ballard Spahr LLP on

Can BSA/AML Requirements Lead to Deemed Knowledge of Borrower Fraud? The first two weeks of August brought a milestone of sorts in the ongoing recovery from the economic downturn brought on by the COVID-19 pandemic. The...more

Lowenstein Sandler LLP

SBA Announces: “SBA may begin a review of any PPP loan of any size at any time in SBA’s discretion” & DOJ Announces Multiple...

Lowenstein Sandler LLP on

Between May 20 and May 22, SBA announced three new Interim Final Rules and the U.S. Department of Justice (DOJ) announced three new fraud prosecutions stemming from PPP loans. Those prosecutions reflect that the DOJ does not...more

Pillsbury Winthrop Shaw Pittman LLP

Implications of PPP Certifications for D&O Coverage

Check your D&O Policy carefully before signing. In the coming months, we will inevitably see new charges brought by the DOJ against borrowers for false statements made in PPP loan applications....more

Bass, Berry & Sims PLC

Update: Investigations Under the CARES Act Ramp Up Even as Oversight Roles Remain Vacant

Bass, Berry & Sims PLC on

The recently passed Coronavirus Aid, Relief, and Economic Security Act (CARES Act) injected previously unthinkable amounts of stimulus funds into the struggling U.S. economy. To oversee the disbursement of these funds and to...more

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