Legal Defenses & Resources for PPP Fraud in Boston

Find Out What You Need to Know if You Are Under Investigation for PPP Fraud in Boston

Allegations of Paycheck Protection Program (PPP) fraud present substantial risks. Businesses prosecuted for PPP fraud can face substantial fines, while business owners and other individuals can face a litany of federal criminal charges that carry both fines and prison time.

As a result, if you or your business is at risk, it is critical to work with an experienced Boston tax defense attorney who can identify the defenses you have available. While there are several potential defenses to all forms of PPP fraud, the specific defenses that are available in any case depend on the unique facts involved. Our IRS criminal PPP lawyer will advise you based on the specifics of your situation.

Examples of Potential Defenses to PPP Fraud Allegations

Once our Boston tax defense attorney evaluates your case, we can provide an assessment of the specific defenses you (or your business) can use to fight the government’s PPP fraud allegations. Depending on the facts at hand, this may include defenses such as:

Compliance with the PPP Application Requirements

Many PPP fraud investigations focus on the application process. If the government is accusing you of submitting a false or fraudulent application, demonstrating compliance with the program’s requirements could save you from an indictment.

Use of PPP Loan Funds Only for Authorized Purposes

Use of PPP loan funds for unauthorized purposes is another common allegation in these investigations. If you have records on hand to show that your business only used its PPP loan for payroll and other qualifying business expenses, these records could prove critical to your defense.

Valid Certification for PPP Loan Forgiveness

Recently, federal authorities have placed increased emphasis on the loan forgiveness certification process. If you are facing allegations of submitting a fraudulent certification, our IRS criminal tax lawyer determines what evidence is available to dispute these allegations and help you avoid criminal charges.

Inadequate Evidence of Non-Compliance

Even if you do not have the documentation needed to prove compliance, the government ultimately has the burden of proof. If the government cannot produce sufficient evidence of non-compliance, prosecution is unwarranted.

Inadequate Evidence of Knowledge or Intent

Many of the federal criminal charges that can flow from PPP fraud investigations require evidence of knowledge or intent. If federal prosecutors cannot prove knowledge or intent, this alone can be enough to stave off criminal prosecution.

Resources for Business Owners and Other Individuals Concerned About PPP Fraud

The Internal Revenue Service (IRS) has published several resources to educate business owners (and others) on the PPP’s requirements and the risks of engaging in PPP fraud. For more information, you can read:

• IRS Announcement 2020-12 (Information Reporting Requirements for Forgiven PPP Loans)
• IRS Guidance on the Deductibility of PPP Expenses
• IRS Advice on the Taxation of PPP Loans

Request an Appointment with Boston Tax Defense Attorney Kevin E. Thorn Now

If you need to know more about defending against allegations of PPP fraud in Boston, we encourage you to contact us for a confidential consultation. To request an appointment with Boston tax defense attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 617-692-2989.