PPP Fraud With Fake Employees
Engaging in PPP fraud with fake employees is a serious federal crime that can result in lengthy prison sentences and a sacrificed future for those who attempt to go through the legal process without the absolute best representation on their side. That’s why clients under scrutiny for PPP loan fraud work with our lawyers at Stechschulte Nell. Our founder and lead attorney, Ben Stechschulte, is board-certified by the Florida Bar Association—a claim only 2% of Florida’s criminal defense attorneys can make. Since graduating from one of the top law schools in the country for trial advocacy, Ben has put his skills to use in both state and federal cases. If you’ve been accused of fraudulent activity, reach out to us today and we’ll review your case.
Falsified Employee Data On PPP Loans Sparks Federal Investigations
During the rollout of the Paycheck Protection Program (PPP) during the COVID-19 pandemic, applicants submitted payroll data for their businesses to show that they qualified for federal aid. Some, however, engaged in PPP fraud with fake employees, using false information about their employees to increase the amount of relief money they received. This often involved listing workers who didn’t exist or exaggerating the number of their staff. Falsified or made-up payroll ledgers, W-2 forms, or tax documents were submitted, flagging
One of the most common tactics in PPP loan fraud using fake employee data is submitting falsified employee records without any real business operation behind them. Application processors couldn’t immediately verify these fake claims, especially during the program’s early days when there was an influx of applications and funds were being rushed out. Now that the pandemic is over and federal agencies are able to catch up on their PPP loan fraud investigations, many more applicants are under scrutiny.
In addition to submitting fake tax documents and employee records, some PPP loan schemes involved submitting inflated payroll reports. Inflated payroll numbers can significantly raise the amount of federal funds disbursed, which increases both the financial impact and potential penalties if fraud is discovered. Investigators are now reviewing applications submitted years ago, and those involved in these schemes may face serious consequences. As federal enforcement continues, anyone accused of PPP fraud with fake employees should immediately consult with legal counsel experienced in federal financial crime cases to build a proper defense and respond to potential indictments or subpoenas.
Proven Case Results Every Time
We work hard to fight for our client’s rights and their futures. No matter what type of criminal charge you’re facing, our attorneys will support you every step of the way. Don’t believe us? Our results speak for themselves.
In 2024, we had a client who was charged with felony battery. He was facing a 5-year prison sentence. After our work was done, the charge was reduced to a misdemeanor and the prison sentence was dropped. In 2023, another client was charged with DUI manslaughter. After hearing our arguments, the jury found our client “not guilty” and the charges were dropped. In 2022, a separate client was facing over a year in jail and felony firearm charges. But we got his sentence reduced to just probation—with no jail time. Time and time again, we’ve kept our clients out of jail and helped to reduce their charges.
We Can Help With Your PPP Fraud Case
Don’t make the mistake of brushing off the importance of having trusted legal representation on your side. We can help protect your future by working to reduce your charges or your sentence so you can get back to your life sooner rather than later. If you or someone you know has been accused of PPP loan fraud, contact our attorneys at Stechschulte Nell to get started on your case, and let’s get your life back on track.
