How To Report PPP Loan Fraud - The Whistleblower Advocates

How To Report PPP Loan Fraud - The Whistleblower Advocates - (215) 402-2183 

How To Report PPP Loan Fraud - When applying for a PPP loan, borrowers are told that they will receive the funds within three business days of submitting their application. Unfortunately, the majority of borrowers never see a dime of their funds. If you have been scammed by a PPP loan lender, or if you suspect that someone else has, call The Whistleblower Advocates Philadelphia, PA. We will help you pursue a civil lawsuit against the scammer or lenders who defrauded you. Our lawyers have recovered compensation for clients in cases involving PPP loan fraud. We will give you the tools and resources to hold your bully loan lenders accountable. Call us today for a free case evaluation.

How To Report Paycheck Protection Program Loan Fraud in Philadelphia, PA?

When you are a whistleblower, it can be extremely difficult to come forward about your employer’s fraud. There are many reasons for this, but one of the most important reasons is fear. Fear of retaliation, fear of losing your job, fear of being blacklisted, and fear of being criminally prosecuted are all reasons why many whistleblowers choose to remain silent. At The Whistleblower Advocates Philadelphia, PA, we understand that there are many forms of fraud that take place at every level of business and that whistleblowing is not always easy. When you have been harmed by an employer’s illegal activity, you should know that your employer cannot retaliate against you for coming forward with evidence of fraud. 

The Paycheck Protection Program, or PPP, is an economic stimulus plan designed to help small businesses affected by the coronavirus pandemic. The PPP was designed to provide forgivable loans to businesses that qualify, but, unfortunately, it has become a tool for fraudsters to steal from businesses that are struggling to stay afloat during this crisis. While most people are not aware of the PPP, there are some who are taking advantage of it. Some loan recipients are claiming that they are not receiving their money. If you are a victim of PPP fraud and want to report it, we can help. At The Whistleblower Advocates Philadelphia, we are proud to work with whistleblowers to help them report fraud, recover their losses, and receive the relief that they deserve.

What qualifies for the PPP? 

The Paycheck Protection Program (PPP) was announced by the United States Department of Treasury and the Internal Revenue Service (IRS) in early March. The PPP is a $349 billion relief package that provides small businesses with funding to keep workers employed during the COVID-19 pandemic. This is one of the largest economic relief measures since World War II. The PPP includes the following programs: the Economic Injury Disaster Loan (EIDL), the Emergency Small Business Association (ESBA) and the Paycheck Protection Program (PPP). The EIDL is a loan to individuals and businesses that are experiencing financial hardship because of the coronavirus. The EIDL can be used to help cover payroll costs, rent and mortgage payments, utilities, and other critical expenses. For eligible applicants, the PPP is a forgivable loan program. The loan can be paid back within 10 years at a low interest rate. The loan can also be forgiven if the business makes a qualified plan, such as a pension plan, to pay back the loan. The ESBA provides emergency funding to state and local governments to provide cash assistance to small businesses. The federal government will provide a direct payment to state and local governments of $10,000 per business to assist in their transition to recovery.

Is it a crime to lie about being eligible for the PPP loan? 

Is it a crime to lie about receiving the PPP loan? Are you guilty of making false statements on the PPP application? If you answer yes to any of these questions, you could be facing felony charges. The False Claims Act (FCA) allows private citizens to bring lawsuits against people who defraud the government. The FCA is a federal law that allows whistleblowers to sue companies and individuals who knowingly make false claims to the federal government. The statute was enacted in 1863, and it was amended in 1986 to cover fraud committed against the federal government. In 2008, the Supreme Court decided United States ex rel. Totten v. Bombardier Inc., which held that an individual cannot bring a qui tam action unless he or she is an original source of the information on which the false claims were based. 

It also ruled that the government must approve the qui tam suit before it can proceed. The PPP is a federally funded program designed to assist small businesses to weather the financial storm that began on September 30, 2008. In order to receive a PPP loan, a business had to be certified by the Department of Labor and the Small Business Administration as eligible for this program. The company’s financial condition had to meet certain criteria established by the Department of Labor and SBA. The PPP provided loans to small businesses with assets below $2.5 million, and the loan was available to businesses with at least 51 employees and an owner who was either a “small business concern” or an individual. The loans were made to small businesses in the form of forgivable loans that could be used for payroll, rent, or mortgage payments.