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SBA Lending Programs Fraud Small Business Administration

Benesch

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

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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

J.S. Held

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

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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

Ballard Spahr LLP

Defendant Challenges FDIC Enforcement Proceeding, Citing Jarkesy

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In one of the first tests of the implications of the Jarkesy decision for other federal regulatory agencies, an individual accused by the FDIC of participating in fraudulent loan activity is asking a federal judge to dismiss...more

Husch Blackwell LLP

PPP Loan Audits Could Affect Millions of Borrowers

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In March 2020 during the height of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law establishing, among other things, the Payment Protection Program (PPP) administered...more

Dorsey & Whitney LLP

False Claims Act Case Tracker for Paycheck Protection Program Fraud - Update

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In the Spring of 2020, the Small Business Association (“SBA”) began administering the Paycheck Protection Program (the “PPP” or the “Program”) to provide SBA-backed loans to help eligible businesses maintain their workforces...more

Holland & Knight LLP

Lenders and Borrowers Beware: EIDL Fraud Alert

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Holland & Knight has learned through customary deal due diligence that some borrowers – especially those who received a Paycheck Protection Program (PPP) loan through the U.S. Small Business Administration (SBA) – may have...more

WilmerHale

Weekly COVID-19 Oversight & Enforcement Report - March 2021 #4

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As part of an ongoing investigation into a “failed” $35 million contract to provide six million N95 masks to the Department of Veterans Affairs (VA), House Select Subcommittee on the Coronavirus Crisis Chair James Clyburn...more

Parker Poe Adams & Bernstein LLP

The Federal Government Continues Investigations Into Paycheck Protection Program Loans

The U.S. Department of Justice has brought criminal indictments against business owners in North Carolina, South Carolina, and Georgia over their use of the Paycheck Protection Program. The program resulted in a rapid influx...more

BCLP

PPP Loan Necessity Certifications and Fraud Investigations

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A recent article in the Wall Street Journal highlights renewed talk in some circles about allegedly “growing evidence” of fraud among PPP participants.  We think the observation of the former federal prosecutor who is quoted...more

Partridge Snow & Hahn LLP

Scammers Obtain Fraudulent SBA Loans by Posing as Legitimate Companies

When tragedy hits, there are always nefarious people who will try to profit. The ongoing COVID-19 pandemic is no exception. There have been recent instances in which scammers have successfully used publicly available...more

Lathrop GPM

Shield Yourself From Liability for Your PPP Loan

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A Florida business owner facing criminal charges serves as a cautionary tale: think twice before using Payroll Protection Program funds to upgrade to a Lamborghini. And, think a third time if you believe you are...more

Burr & Forman

US DOJ Criminal Chief Announces 57 “Main Justice” PPP Cases

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At a September 10 press conference, Acting Assistant Attorney General Brian Rabbitt announced that the Department of Justice (“DOJ”) Criminal Division has reached 57 criminal prosecutions for fraud in connection with the...more

Robins Kaplan LLP

Financial Daily Dose 8.4.2020 | Top Story: Twitter to Pay FTC Up to $250 Over Privacy Violations

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Twitter will pay the Federal Trade Commission up to $250 million to “resolve new charges . . . that the social media giant breached a 2011 consent decree by using data provided for security purposes to target users with...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...

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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

Vinson & Elkins LLP

Ninth Circuit Holds That SBA Loan Fraud Was Alleged Too Late: Takeaways For SBA Borrowers And Lenders

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On April 1, 2020, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court decision holding that a qui tam relator in a False Claims Act (“FCA”) action failed to file its complaint alleging Small Business...more

Morrison & Foerster LLP - Government...

Is My Company’s PPP Loan “Necessary To Support Ongoing Operations?” What If I’m Wrong?

This post has been updated on May 6, 2020 with new safe harbor deadline for repayment of PPP loans. Given the proliferation of adverse news articles and TV pundit segments about well-funded companies that have received...more

Ballard Spahr LLP

PPP Participants Should Prepare For Vigorous Oversight

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With significant government intervention comes significant government oversight. That is the message coming from Capitol Hill and the Executive Branch concerning the Payroll Protection Program (PPP), a Small Business...more

Lathrop GPM

More Money More Problems? CARES Act Stimulus Comes with Potential for Broad Oversight Investigations, Audits, and Enforcement

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The Coronavirus Aid Relief and Economic Security Act (CARES Act), is the most expensive piece of legislation ever passed and aims money at businesses to keep them afloat during the COVID-19 pandemic. With nearly $500 billion...more

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