News & Analysis as of

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

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

Benesch

Engaging in Activities that Violate Federal Law? DOJ Scrutiny of PPP Loan Recipients Turns to Ancillary Companies Supporting the...

Benesch on

Since its inception, the cannabis industry has always existed alongside significant regulatory and compliance challenges. These largely stem from the fact that the manufacture, distribution and possession of marijuana remains...more

Arnall Golden Gregory LLP

PPP Loan Prosecutions Appear to Be in the Technical Non-Compliance Phase

On March 27, 2020, the CARES Act was signed into law to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic, including in the form of forgivable loans to small...more

McDermott Will & Emery

The PPP Turns Four: Lessons Learned and What Lies Ahead

McDermott Will & Emery on

Four years ago this month, lenders began dispersing Paycheck Protection Program (PPP) loans to small businesses in what would become the largest Small Business Administration (SBA) lending program in history. The SBA approved...more

Harris Beach PLLC

False Claims Act Enforcement Highlights Need for Robust Compliance Programs

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The U.S. Department of Justice (“DOJ”) announced its False Claims Act (“FCA”) enforcement statistics for FY 2023 and identified key priorities for FCA enforcement in 2024 and beyond. The DOJ continues to pursue FCA...more

Burr & Forman

The USDOJ Continues to Increase Its Fraud Enforcement Actions Related To COVID-19 Relief Benefits

Burr & Forman on

Fraud enforcement actions by the United States Department of Justice (USDOJ) continue to rise against companies and individuals related to their applications for and receipt of COVID-19 benefits. It appears that no type of...more

Bass, Berry & Sims PLC

Government Announces First FCA Settlement with PPP Lender

Bass, Berry & Sims PLC on

The Department of Justice (DOJ) announced on September 12, the first-ever False Claims Act (FCA) settlement with a Paycheck Protection Program (PPP) lender. Prosperity Bank, a Texas-based regional bank, agreed to pay...more

Jackson Lewis P.C.

Paycheck Protection Program: Government Enforcement, Oversight

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Nearly one year ago, in response to the COVID-19 pandemic and related economic downturn, the Small Business Administration-backed Paycheck Protection Program (PPP) provided loans to help businesses keep their workforce...more

Cozen O'Connor

PPP Fraud Is Ripe for Enforcement in 2021. Can Self-Disclosure & Cooperation Create a Path to Leniency?

Cozen O'Connor on

As we approach the one-year anniversary of passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act, we are getting a better sense of how the government will address fraud arising out of this legislation....more

Burr & Forman

PPP Borrower Pays Damages and Penalties to Government in First False Claims Act Settlement

Burr & Forman on

The US Department of Justice announced the first civil settlement involving allegations of fraud against a PPP borrower. SlideBelts Inc. received a PPP loan under the CARES Act.  SlideBelts is an internet retail company and...more

PilieroMazza PLLC

DOJ Announces Nation’s First Settlement of Civil Case for PPP Loan Fraud

PilieroMazza PLLC on

On January 12, 2021, the U.S. Department of Justice (DOJ) entered into a settlement with California-based SlideBelts, Inc. (SlideBelts) and its president and chief executive officer in what is advertised as the country’s...more

Stinson LLP

COVID-19 Recovery: Are You Ready for the SIGPR?

Stinson LLP on

The COVID-19 pandemic hit the United States in 2020 and Congress responded with legislation to provide a variety of forms of relief to small and large businesses and nonprofits, as well as individuals....more

Fox Rothschild LLP

PPP Loan Fraud Enforcement 2.0: Preparing For The Next Round Of Scrutiny

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While the $525 billion Paycheck Protection Program (PPP), enacted as part of the CARES Act, has undoubtedly helped millions of deserving businesses survive the COVID-19 pandemic, it has also provided a unique opportunity for...more

Burr & Forman

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

Burr & Forman on

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

Oberheiden P.C.

Is “Fraud Tourism” The Next Big Thing? How U.S. Government Money Ends Up Abroad

Oberheiden P.C. on

How much of the Paycheck Protection Program (“PPP”) will end up in the hands of bad actors? With several hundreds of billions of dollars in the PPP bucket, fraud, misuse, and misdirection of funds is already being identified...more

Miles & Stockbridge P.C.

Preparing for Government Investigations in Wake of PPP Loan Certifications

The U.S. Department of Justice (“DOJ”) is scrutinizing borrowers who have applied for loans through the Small Business Administration’s Paycheck Protection Program (“PPP”), established by the Coronavirus Aid, Relief, and...more

Goodwin

U.S. Paycheck Protection Program Lenders: Risks of False Claims Act Enforcement Actions

Goodwin on

Congress has recently updated the Paycheck Protection Program (PPP) to stabilize the economy in response to the troubling economic impact of the COVID-19 pandemic. Lenders should be aware that the federal government’s efforts...more

BCLP

Action Items for Recipients of PPP Loans to Mitigate Risk Related to Fraud Allegations

BCLP on

In our last article, we discussed how recipients of larger PPP loans are at risk for allegations of fraud and specifically addressed how these recipients may become targets of False Claims Act (FCA) allegations, which can be...more

ArentFox Schiff

Investigations Newsletter: Foreign National Charged With Fraudulently Applying for $20 Million in COVID-19 Loans

ArentFox Schiff on

Foreign National Charged With Fraudulently Applying for $20 Million in COVID-19 Loans - On May 21, 2020, the US Attorney’s Office for the Southern District of New York announced the arrest of a foreign national for...more

Foley Hoag LLP - White Collar Law &...

Texas Man Using Online Name Generator Latest to Be Charged with PPP Loan Fraud

In the past two weeks, the federal government has charged several individuals in Paycheck Protection Program loan fraud schemes. The allegations have ranged from applying for loans for non-operating businesses to using loan...more

BCLP

US: Recent Criminal Charges for Fraud Related to PPP

BCLP on

The U.S. federal government is serious about its warning of stepped up scrutiny of borrowers seeking loans from the SBA’s Paycheck Protection Program (“PPP”), established as part of the Coronavirus Aid, Relief, and Economic...more

Akin Gump Strauss Hauer & Feld LLP

Federal Prosecutors Investigating Fraud in Paycheck Protection Program

Federal prosecutors are investigating possible fraud by applicants to the Paycheck Protection Program (PPP), Bloomberg News and other outlets report. The program makes loans available to small businesses to cover certain...more

WilmerHale

COVID-19: What History Tells Us About the Importance of the False Claims Act in a Time of Pandemic

WilmerHale on

This is the first in a series of client alerts addressing the likely role of the False Claims Act in the wake of the massive federal government response to the COVID-19 pandemic. On March 20, 2020, the Department of...more

Burr & Forman

US DOJ Files First Criminal Action for PPP Loan Fraud

Burr & Forman on

The United States Department of Justice (“DOJ”) has filed the first criminal action for fraud in connection with PPP loans.  Documents unsealed May 5 in the United States District Court for the District of Rhode Island accuse...more

Dechert LLP

Government Stimulus Spending Likely to Lead to False Claims Act Investigations and Enforcement Actions

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Through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the federal government has passed an emergency stimulus package that will result in an unprecedented US$2 trillion infusion into the private and...more

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