News & Analysis as of

Paycheck Protection Program (PPP) Loans Department of Justice (DOJ)

Benesch

Paycheck Protection Program (“PPP”) Loan Fraud: A Survey & Analysis of Recent Civil & Criminal Enforcement Outcomes

Benesch on

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in or around March 2020 designed to provide emergency financial assistance to the millions of Americans who were suffering the...more

Fox Rothschild LLP

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

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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

Morrison & Foerster LLP

Biden Administration Extends Statute of Limitations for PPP and EIDL Fraud to Ten Years

Two weeks ago, President Biden signed two laws extending the statute of limitations for civil and criminal fraud actions involving the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) to ten years....more

Sheppard Mullin Richter & Hampton LLP

DOJ Investigating FinTech Over PPP Loans

On June 3, a federal court filing in the Southern District of Florida by an Atlanta-based FinTech company revealed that the small business lender is under DOJ investigation for alleged PPP loan approval practices. According...more

Sheppard Mullin Richter & Hampton LLP

Court Filing Reveals that DOJ Is Investigating Fintech’s Administration of PPP Loans

A federal court filing by a fintech company revealed that it has been under investigation by the Department of Justice (“DOJ”) in relation to its Paycheck Protection Program (“PPP”) loan approval practices for over a year...more

Greenbaum, Rowe, Smith & Davis LLP

U.S. Department of Justice Takes Aim at Extensive PPP Loan Fraud

What You Need to Know- •The federal government estimates that fraud totals related to the Paycheck Protection Program are as high as $80 billion, due to the fallout from a fast-tracked applicant vetting process that...more

Bradley Arant Boult Cummings LLP

Government Ramps Up Enforcement Efforts on COVID-19 Relief Fraud

The federal government is substantially ramping up its enforcement of COVID-19-related fraud. In a press release issued yesterday, the United States Secret Service announced the naming of a “National Pandemic Fraud Recovery...more

Arnall Golden Gregory LLP

Update: The Growing Wave of PPP Loan Prosecutions

As the pandemic slowly recedes, leaving a host of hastily-enacted funding and programs in its wake, the government’s recovery and clean-up efforts are well underway. In April and May 2021, the Department of Justice (DOJ)...more

Nelson Mullins Riley & Scarborough LLP

DOJ Investigates FinTechs Over PPP Loan Miscalculations

According to Reuters, the civil division of the U.S. Department of Justice (DOJ) is investigating several FinTech companies, including Kabbage Inc., to determine if the firms miscalculated the amount of aid owed to individual...more

Morrison & Foerster LLP

DOJ Enforcement Actions Involving COVID-19 Relief Fraud: An Update

Soon after Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in March 2020, the Criminal Division of the U.S. Department of Justice (DOJ) moved quickly to address potential COVID-19 related...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

BakerHostetler

Important Lessons from the DOJ's First Civil Action for CARES Act Loan Fraud

BakerHostetler on

On January 12, 2021, the Department of Justice (the “DOJ”) settled its first civil action for alleged fraud against the Paycheck Protection Program (the “PPP”) – the primary lending program under the Coronavirus Aid, Relief,...more

Oberheiden P.C.

SBA Loan Fraud Defense—How to Defend Against an Indictment

Oberheiden P.C. on

Tips on Preparing to Defend Against Allegations of SBA Loan Fraud During the COVID-19 Crisis - Federal emergency relief legislation—including the Coronavirus Aid, Recovery, and Economic Security Act (“CARES Act”)—has...more

Fox Rothschild LLP

Early Cases Demonstrate The Justice Department’s Commitment To Aggressively Prosecute PPP Loan Fraud

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Shortly after the Small Business Administration began accepting applications for Paycheck Protection Program (PPP) loans, two Rhode Island businessmen quickly applied for a combined $543,881 from the program. A few days...more

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