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Frequently Asked Questions
1. How did these women commit the loan fraud?
According to the U.S. Attorney’s Office, the women conspired with other individuals to obtain fraudulent Paycheck Protection Program (PPP) loans using false information on their applications. They created and provided fake loan applications and supporting documents, which overstated the number of employees and gross wages being paid prior to the pandemic to qualify for the loans.
2. What were the PPP loans intended for and why are they being abused?
The PPP loans were designed by the U.S. Government to help small businesses stay afloat during the devastating pandemic. They were misused, however, by individuals who saw an opportunity to fraudulently obtain money. These individuals falsified information to qualify for the loans and then used the funds for their own personal gain, rather than to assist their businesses.
3. What are the potential consequences of committing loan fraud?
Defendants in these loan fraud cases face serious legal consequences. In this case, the women face up to 20 years in prison. Other potential penalties can include hefty fines, restitution, and in some cases, asset forfeiture. Additionally, committing loan fraud can lead to serious reputational damage which may affect future business endeavors.
