Federal Government Charges First Case of CARES Act FraudBy email@example.com on 05/11/2020
Cedar Grove, New Jersey – May 11, 2020
On May 4, 2020, the U.S. Attorney for the District of Rhode Island charged two individuals with fraudulently seeking CARES Act Small Business Association (“SBA”) Paycheck Protection Program (“PPP”) loans. The criminal complaints allege that the two men conspired to apply for the loans, which are guaranteed by the SBA, claiming that they had dozens of employees working for different business entities when there were no individuals actually employed. Both defendants were charged with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud. One of the defendants also was charged with bank fraud. These are the first such charges in the nation and mark the start of likely long-term government investigation of PPP fraud.