What is a PPP Loan Fraud Settlement and Is it Possible to Settle If Your Company is Accused of PPP Loan Fraud?
The U.S. Department of Justice has announced that a group of affiliated companies operating under one family office will pay $10.8 million to settle allegations that they fraudulently obtained PPP loans and deliberately obscured the truth from regulators. The companies—Barrington Venture Holding Company LLC, The Club at Strawberry Creek LLC, Nuestro Queso LLC, and Tire Profiles LLC—allegedly received a combined $5 million in small business loans by misrepresenting their eligibility, including the number of employees. Under PPP loan rules, only companies with fewer than 500 employees were eligible. But in the case of affiliated entities, the total number of employees across all related companies must be counted together. The DOJ alleged that these four businesses failed to disclose their affiliations, allowing them to individually qualify under false pretenses. For example, the Club at Strawberry Creek received $629,000, claiming it had 45 employees and used almost the entire loan for payroll.
Can You Settle a PPP Loan Fraud Accusation Against Your Company?
The COVID-19 Fraud Enforcement Task Force has been aggressively investigating and prosecuting pandemic relief fraud since its establishment in 2021. According to the Taskforce dashboard, most cases of PPP loan program fraud involve larger businesses attempting to exploit loopholes in the law. Settling an accusation of PPP Loan Fraud is in the interest of the business, its shareholders and its employees. Federal investigations can lead to civil penalties, criminal charges against individuals and organizations, reputational damage, as well as financial losses. However, the recent news indicates that the DOJ has shown a willingness to settle in cases where businesses come forward and cooperate.
If your business is under federal scrutiny for PPP loan fraud, you need to hire an experienced white collar crime attorney who understands the complexities of these allegations. A skilled attorney can help navigate the legal landscape, negotiate with prosecutors, and, critically, work toward a resolution that protects both your privacy and the financial health of your business. With billions recovered and investigations ongoing, enforcement is far from over. If your company received PPP loans and there’s any concern about how they were obtained or reported, now is the time to seek counsel. AT Dhar Law, LLP our award-winning fraud defense and white collar criminal defense team have defended countless high-level criminal and civil cases resulting from federal investigations. Please contact us at 617-880-6455 to speak to a member of our team.
