The COVID-19 pandemic caused chaos throughout the business community, leaving companies suddenly shuttered and workers without their source of income. The federal government adopted the Paycheck Protection Program—or PPP—to help businesses pay their employees during the shutdown.
Unfortunately, many applications submitted were fraudulent, and the federal government lacks the resources to police every small business for these actions.
A Columbia PPP fraud whistleblower lawyer could help someone with inside knowledge regarding the misuse of funds to report that information to the government and potentially recover a monetary award. Call today to speak with an experienced whistleblower attorney.
What is PPP?
In 2020, the federal government empowered the Small Business Administration to soften the blow of the COVID-19 pandemic by offering funds to cover expenses for small companies over the course of eight weeks. This money was largely intended to cover payroll costs for businesses that suddenly saw their income devastated by the pandemic and government shutdowns. The money could also be used for utilities, rent, and other business expenses.
The financial institutions working with the SBA found themselves overwhelmed with applications, and the high volume remained for as long as the program was in effect. The downside to its popularity is that it became nearly impossible for the government to identify fraud without help from those with inside information. For that reason, Columbia PPP fraud whistleblower attorneys have helped individuals with knowledge of wrongdoing submit claims to the government and collect rewards for their information.
Examples of Paycheck Protection Program Fraud
PPP fraud can come in many different forms. It often leads to criminal charges related to federal wire or bank fraud. However, many of these unscrupulous acts go undetected for years.
Some cases involve submitting falsified tax documents so that a business appears to qualify for PPP when it does not. Ultimately, any intentionally false material statement made in the application is an example of fraud. In addition to lying on the application, cases also dealt with submitting multiple applications in an effort to secure more funding.
False statements on the application are not the only example of fraud. Some allegations relate to falsified statements on loan forgiveness documents. Keep in mind that PPP funding is treated as a regular loan that must be paid back unless forgiveness is granted.
Finally, misuse of PPP funds is another common issue. The money recovered through this program must be used for specific business expenses, and there are consequences for spending it on unapproved items.
Support For Whistleblowers
When a person has details of PPP fraud, a whistleblower lawyer in Columbia may be able to help. Thanks to the False Claims Act, it is possible to submit these details to the government and potentially earn a monetary award in the process.
The information provided must be new, and the whistleblower cannot be involved in any underlying illegal activity. If the tips lead to the recovery of fraudulent funds, the whistleblower is entitled to a portion of recouped.
Talk to an Attorney in Columbia About Acting as a PPP Fraud Whistleblower
When you have inside information regarding fraudulent PPP activity, now is the time to act. You may be entitled to financial compensation based on the details you provide.
Fortunately, you do not have to manage this process alone. To learn more, schedule an initial consultation with a Columbia PPP fraud whistleblower lawyer today.
