If you have witnessed your employer allegedly committing Paycheck Protection Program (PPP) loan fraud, or strongly suspect them of having broken any of the PPP loan terms, we would highly suggest you contact a PPP whistleblower lawyer to determine your options for reporting the potential loan fraud.
The Paycheck Protection Program (PPP) was established in March 2020 as part of the government’s response to the COVID-19 pandemic. It was developed to help companies pay their employees during the crisis. The loans were forgivable as long as 60 percent went to payroll expenses. Millions of companies applied for the loans and billions of dollars were disbursed through the program, according to NPR.
However, some companies didn’t follow the guidelines on how to spend the funds or falsely applied for PPP loan forgiveness. Examples of how companies could engage in PPP fraud include falsifying payroll to receive extra funds or using those funds for personal benefit instead of keeping employees on the payroll. Some may have sought forgiveness of the loan but falsely claimed it kept employees that were, in reality, actually laid off.
A lawyer can help you understand your rights about how to properly file a claim under the False Claims Act, and you may even potentially receive a whistleblower award for reporting PPP loan fraud. To build an effective PPP fraud case, you’ll need evidence that supports your allegations that your employer misrepresented data or misused the funds.
If you suspect your employee may have committed PPP loan fraud, contact us today to see how Phillips Law Group can help.
Examples of PPP Loan Fraud
Some examples of PPP loan fraud include but are not limited to:
- Falsely claiming a company has fewer than 500 employees to qualify
- Falsely claiming the COVID-19 crisis hurt business to qualify
- Misrepresenting average monthly payroll costs to get more loan money
- Misrepresenting if employees leave to have more of the PPP loan forgiven
- Falsely claiming all the loan money is going to qualified expenses such as payroll, rent, and utilities to get the loan forgiven
- Using funds for personal benefit instead of keeping employees on the payroll
- Seeking forgiveness of the loan but falsely claiming laid-off employees were kept on the payroll
- …and more
What Should I Do if I Suspect PPP Fraud?
If you believe your employer has broken any of the PPP loan terms, you should talk to a PPP whistleblower lawyer. You could receive a reward for exposing PPP loan fraud, but need strong evidence to build a case. The lawyers at Phillips Law Group can help with an initial review of your case.
How Much Does a Lawyer Cost?
The attorneys at Phillips Law Group handle cases on a contingency basis, which means we do not require money upfront. There is no risk in giving our team a call to talk about your legal options if you suspect your employer of PPP loan fraud. Contact us today to learn more!
Available 24/7