The owner of a local soup and sandwich shop has gotten desperate. When Illinois governor Pritzker announced the first round of shutdowns, he wondered if his business could survive. He heard about the federal government Paycheck Protection Program (PPP) and decided to take advantage of it. He is a hard-working businessman, but he has lost hope that the business will be able to survive the pandemic.
He decided to fire his employees to use the PPP funds that should have gone to his employees to pay the mortgage for his home, after closing up shop. After all, he thought, if he cannot pay his mortgage, his lender will foreclose on his home, and he will be left with nothing. He thought he was doing the best thing for his family. Now he is facing federal fraud charges for his actions.
Small Business Owners are Between a Rock and a Hard Place
As the number of deaths from coronavirus in Illinois continues to surge, and as residents endure another round of shutdowns, many small business owners are getting desperate. Illinois is still in the “danger zone,” according to experts, and many small business owners are wondering how much longer they can limp by without the ability to fill their restaurants and stores up with customers. Hundreds of thousands of businesses have taken advantage of the federal government’s Paycheck Protection Program, but the help provided by this program often is not enough for companies to survive.
The Justice Department Has Charged Dozens of Small Business Owners With Fraud
In September, the justice department announced that it had charged dozens of small business owners for fraud involving its PPP. They discovered that these 57 suspects allegedly stole over $175 million from the government program. In some cases, the business owners lied about needing money to pay their employees. They took the money that was supposed to pay their employees and used it to buy luxury items for themselves.
In other cases, applicants for PPP relief lied about owning legitimate businesses. Some of the cases involved coordinated groups of suspects who worked together to steal large amounts of money from the PPP program. The amount of money allegedly stolen ranged from $30,000 to approximately 24 million dollars.
They have arrested two suspects in Buffalo whom they have accused of attempting to steal $7.6 million from the PPP, and seven people who were allegedly participating in a ring to launder hundreds of thousands of dollars while pretending to be legitimate business owners. Federal law enforcement officials have stated that they will continue to aggressively pursue fraud charges under the Paycheck Protection Program.
Contact an Illinois PPP Fraud Lawyer Today
The Federal guidelines for how the PPP money can be used are quite strict and even the most well intentioned business owner can unintentionally violate them. If you need a lawyer because you are facing federal fraud charges, experience matters. If you are convicted, you face significant jail time and other penalties that will negatively affect your life in the long run. Contact the experienced criminal defense lawyers at Glasgow & Olsson today to schedule your initial consultation.