Federal authorities continue to investigate allegations involving Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), unemployment benefits, and other pandemic-relief programs. For a person or business contacted by an investigator, served with a subpoena, or questioned about an application, early legal advice can be important.
Why COVID-relief investigations continue
Pandemic programs distributed substantial funds quickly, often through online applications and electronic transfers. Agencies can later compare applications with tax filings, payroll records, bank activity, corporate records, loan-forgiveness submissions, and information from third parties. A case may begin years after the original application.
Recent Louisiana federal cases show that enforcement remains active. A charge or indictment is an allegation, not proof of guilt, and the government must prove every element beyond a reasonable doubt.
Conduct investigators may examine
- Eligibility statements and certifications in PPP or EIDL applications
- Reported employees, payroll expenses, revenue, and business operations
- Duplicate or overlapping applications
- Use of loan proceeds and unemployment benefits
- Loan-forgiveness applications and supporting documents
- Transfers between personal and business accounts
- Tax returns, payroll filings, invoices, and accounting records
- Emails, text messages, cloud files, and communications with preparers or lenders
Why wire fraud may be alleged
Federal prosecutors may charge wire fraud when they allege that a person knowingly participated in a scheme to defraud and used interstate electronic communications to advance it. Online applications, emails, electronic signatures, bank transfers, and other digital transmissions may be cited as the alleged wires. The existence of an inaccurate application does not by itself answer questions about knowledge, intent, materiality, reliance, or who supplied particular information.
Other possible charges and consequences
Depending on the facts, an investigation may involve alleged false statements, conspiracy, theft of government funds, bank fraud, identity theft, tax offenses, money laundering, or unlawful monetary transactions. The government may also seek restitution, forfeiture, civil penalties, or administrative remedies. Every case is different, and the available defenses depend on the evidence and the statutes charged.
What to do after receiving a subpoena or agent contact
- Do not ignore a subpoena, interview request, or deadline.
- Do not delete, alter, or conceal documents or electronic information.
- Avoid guessing or making informal statements about facts you have not reviewed.
- Preserve applications, bank records, payroll information, tax documents, emails, texts, and communications with accountants, preparers, or lenders.
- Consult counsel before agreeing to an interview or producing records.
How defense counsel evaluates the case
A careful review may address who prepared and submitted each application, what information was available at the time, how program rules were understood, whether the challenged statements were material, how funds were used, and what the electronic record actually shows. Counsel may also evaluate the scope of the investigation, communicate with authorities, manage document production, review discovery and digital evidence, and prepare for negotiations, motions, trial, or sentencing.
Federal representation throughout Louisiana
Bickham Law represents clients in federal white-collar matters and investigations. Ralph Bickham is admitted to practice in the United States District Courts for the Eastern, Middle, and Western Districts of Louisiana. To discuss a PPP, EIDL, unemployment-benefit, or related federal fraud matter, call 504-584-5730 or request a confidential consultation.
Related: Learn more about Bickham Law’s federal white-collar defense representation and read about federal wire-fraud investigations and digital evidence.
This article provides general information and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts and applicable law.