There has been a noticeable spike in the number of PPP Loan Fraud criminal cases being charged by the federal government in Denver, Colorado. This jump in wire fraud and money laundering charges is the result of the U.S. Department of Justice’s creation of COVID-19 Fraud “Strike Force” right here the District of Colorado. Read more about the Justice Department’s Strike Force, the increase in federal charges related to PPP and EIDL loans, and how the lawyers at Evergreen Attorneys can help fight your case.

What is PPP Loan Fraud?

In the midst of the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Part of the CARES Act created the Paycheck Protection Program (PPP) and expanded the Economic Injury Disaster Loans (EIDL) to help small business during a global emergency. Since the CARES Act, over 11.5 million PPP loans were approved totaling approximately $792.6 billion.

PPP loan fraud can occur in many ways. Often the government will allege that an individual submitted false information in applying for the loan or repayment forgiveness. This can include falsifying the number of employees, income, or misappropriating funding from the loans.

What Charges are Involved in PPP Loan Fraud?

There is no federal statute addressing PPP or EIDL loan fraud specifically. However, the government will often bring federal charges of wire fraud, money laundering, or conspiracy. These are very serious federal felonies that can result in up to 20 years in federal prison on each count.

Under federal statute, wire fraud is committed by having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or article.

Money laundering occurs when a person, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conducts or attempts to conduct such a financial transaction which involves the proceeds of unlawful activity.

PPP Loan Fraud in Colorado

As mentioned above, the United States Department of Justice established a COVID-19 Strike Force in the District of Colorado intended to specifically target and charge individuals accused on PPP loan fraud. According to the DOJ, as of August 2023:

The Justice Department has [ ] seized over $1.4 billion in COVID relief funds . . . and charged over 3,000 defendants with crimes in federal districts across the country.

Many of these cases are being prosecuted in the District of Colorado, even if the defendant did not reside or have their business in Colorado. That is because many SBA loans were funded through banks in Colorado which, in the federal justice system, is enough to give the District Court of Colorado jurisdiction.

Denver Federal Criminal Defense Attorneys

If you have received a target letter or are subject to a CID, it is crucial to have knowledgeable and experienced lawyers get involved ASAP. Sometimes these can be resolved without charges being brought by the federal government.

If you have already been indicted on federal PPP loan fraud or other wire fraud charges in Colorado, you need federal criminal defense lawyers that know the federal system and know how to defend white collar crimes.

Contact the Colorado Lawyers at Evergreen Attorneys

The lawyers at Evergreen Attorneys have experience defending white collar federal charges and allegations of PPP loan fraud. Contact us today for a free consultation by calling (303) 948-1489 or by email at [email protected].