Why Choose Gaviria As Your PPP Lawyer?
When you need a PPP lawyer, you must choose the right company for yourself and your circumstances. If your reputation, finances and liberty are at stake, you need the best legal advice from the most experienced practitioners.
Gaviria is one of the most trusted and reputable criminal defense law firms in Miami. We have a long track record of working hard for our clients and securing the best outcomes. Below we’ve highlighted five reasons why clients choose us:
- We are PPP loan specialists, experts on compliance and PPP pitfalls.
- We have more than 20 years’ experience of federal trial law.
- You are assured of complete confidentiality and discretion.
- Exceptional client-focused care is the cornerstone our practice. We are available and accessible.
- We are PPP lawyers who know how to win in Miami courts.
Your defense starts here.
For a free, no-obligation initial consultation/case review, fill out the contact form.Your best chance of a successful defense against an accusation of PPP loan fraud is to take action now.
Whenever there is a federal relief program offering risk-free funding, fraudsters will try to scam the system. However, there will also be individuals who are wrongly accused of being a criminal. If your company secured a PPP loan and you’re applying for loan forgiveness, you can expect to be under a lot of scrutiny as the federal government moves to crack down on those suspected of fraud.
If you’re under suspicion of PPP fraud or have been charged, you should hire us as your PPP lawyer as soon as possible. Federal charges are serious and trying to fight them without a criminal defense attorney is almost impossible.
There are several ways our PPP law firm can help you:
- If you have been arrested or are under suspicion, we will put you in a better position to fight possible charges and lawsuits
- If you’ve been charged in connection with a PPP loan scam, we will help you navigate the criminal justice system and fight for you and your rights.
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If a federal agent has contacted you, we strongly advise you to contact us before discussing your loan or providing any business documents to the government.
Anything you say and do can be used against you in a court of law. That is why it is important to assert your right to remain silent until your PPP lawyer is present. - If you think you or your company may be under investigation, don't wait to be contacted by federal officers. Being proactive can go a long way toward avoiding or minimizing criminal charges and PPP fraud penalties.
Whatever situation you find yourself in, having a federal defense lawyer on your side can make a big difference and significantly improve your chances of a more favorable outcome.
When the COVID-19 pandemic struck, many businesses across the United States soon found themselves struggling to stay afloat. In response, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. As part of this $2 trillion relief package, companies could obtain funds to cover payroll and other expenses by getting loans from the Paycheck Protection Program (commonly known as PPP). They were guaranteed by the Small Business Administration (SBA).
However, the program’s speedy implementation, the pressure on financial institutions to issue loans, and the amount of money available made the potential for fraud more likely.
In June 2020, the Department of Justice opened a broad investigation into businesses and self-employed individuals that applied for PPP loans. At the time of the investigation’s launch, Assistant Attorney General Brian Benczkowski, head of the Department of Justice’s criminal division, stated, “whenever there’s a trillion dollars out on the street that quickly, the fraudsters are going to come out of the woodwork in an attempt to get access to that money.”
If you or your company are being investigated in connection with the payroll protection program, call our skilled federal defense lawyers at Gaviria for immediate assistance. Prosecutions for PPP loan scams can carry severe penalties depending on the amount of money involved.
We’ll start by reviewing your loan application and business documents and deal with the federal agents conducting the investigation.
As a trusted PPP law firm with a proven track record, we have the experience and knowledge to raise appropriate defenses. In many cases, it is possible to solve PPP loan fraud cases at the investigation phase.
Protect yourself by reaching out to our law firm right away for a confidential consultation. Call us now at
(305) 379-4441.
(305) 379-4441.
The CARES Act is not a penal statute, so to prosecute PPP fraud, the DOJ is using existing federal laws. Allegations of PPP loan fraud can lead to a multitude of different charges. These include but are not limited to wire fraud, bank fraud, making false statements to a financial institution, tax evasion and conspiracy to commit fraud.
Many people assume that fraud has to be intentional, but this is not the case. Even inadvertent misuse of PPP loans can result in criminal prosecutions. And the PPP fraud penalties are severe. If found guilty, they can run from heavy fines to decades behind bars.
While the Paycheck Protection Program has helped thousands of businesses, economic relief payments are often subject to fraud. The PPP is no exception. Prosecutors and criminal investigators are aggressively targeting individuals and companies suspected of PPP loan scams to recover monies that may have been falsely obtained.
Following are some of the PPP loan fraud red flags that set off alarm bells and could trigger an investigation.
PPP loan applicants have to prove how the funds will be used to determine how much of the loan will be eligible for forgiveness. During the application process, they must demonstrate they have no more than 500 employees and are applying because they need the loan to keep the business going.
Under the CARES Act, businesses are only eligible to receive one PPP loan from one lender at a time. Obtaining multiple loans (known as loan stacking) is prohibited.
PPP loan applicants have to prove how the funds will be used to determine how much of the loan will be eligible for forgiveness. During the application process, they must demonstrate they have no more than 500 employees and are applying because they need the loan to keep the business going.
Under the CARES Act, businesses are only eligible to receive one PPP loan from one lender at a time. Obtaining multiple loans (known as loan stacking) is prohibited.
PPP loans must be used for legitimate and eligible
expenses such as payroll and business mortgage interest payments. Using PPP loans for personal expenses is against the law, and the DOJ has publicly charged hundreds of defendants. If found guilty, they face hefty fines and lengthy prison sentences.
Among the most common PPP loan fraud red flags are inflated payroll costs and employee numbers
The CARES Act establishes how businesses use and account for PPP loan funds. Recipients should adopt documented policies and procedures to ensure ongoing compliance. Lack of sufficient documents and procedures will be viewed as a red flag for fraud.
The loans must be used for defined purposes such as making payroll-related costs. Companies must deposit loan funds into separate accounts so they can justify all disbursements. They should not mix PPP loan money with other company assets.
The SBA Paycheck Protection Program is a loan program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The primary purpose of the 100% federally guaranteed loans is to give employers an eight-week cash injection to help them retain and pay their existing staff.
The loan amounts provide a cushion to cover payroll costs, mortgage interest, rent and utilities. If businesses stick to the guidelines, it is possible to have 100% of the loan forgiven, meaning there is nothing to pay back.
Initially, this was a $349-billion program, but the money was gone within two weeks, resulting in an additional funding round totaling $320 billion. A further $285 billion was added in December 2020. Businesses can now also apply for a second PPP loan if they have used up their first loan and experienced a drop in revenue of 25% or more.
- Forgivable loans when used for payroll, mortgage interest, rent or utilities.
- No personal guarantee or collateral is required.
- You can borrow up to 2.5 times your average monthly payroll, up to a maximum of $10 million.
- Businesses have up to 24 weeks to spend the loan.
- The interest rate is fixed at 1%
- Payback terms are two years for any portion not forgiven, and there are no prepayment penalties
- Loans of more than $2 million automatically undergo a PPP audit by the SBA.
- Many PPP loans under $2 million are also audited.
- Payments are monthly.
- Automatic six-month payment deferral.
- No fees.
- All businesses (including nonprofits, self-employed individuals, sole proprietorships and independent contractors) with 500 or fewer employees are eligible.
- SBA Paycheck Protection Program
- DoJ’s National Center for Disaster Fraud (NCDF)
- DoJ Opens Investigation into PPP Loans and Borrowers