The Justice Department has opened an investigation into companies that applied for emergency loans under the Paycheck Protection Program, and businesses that provided misleading information could face jail sentences, experts say.“Whenever there’s a trillion dollars out on the street that quickly, the fraudsters are going to come out of the woodwork in an attempt to get access to that money,” Assistant Attorney General Brian Benczkowski told Bloomberg News Thursday.
Small-business owners who have applied for or received PPP funds should “definitely take it as cause for concern,” Derek Adams, a former Justice Department trial attorney, told MarketWatch. But last week the government issued further guidance saying that applicants must exhaust other avenues of liquidity that would enable them to support ongoing operations. “This suggests a more robust analysis than what a lot of folks initially anticipated,” said Adams. “Businesses should do a fresh analysis to understand if they can support this certification before May 7,” a government-set deadline for paying back loans.
Read more: Treasury gives big public companies until May 7 to return loans meant for small businessesCompanies that are found to have misled the government about the necessity of the loans could face penalties ranging from a loss of loan forgiveness to jail time. “When you’re making a certification in connection with receiving this loan, you face criminal liability” under statues that proscribe lying to government as well as mail fraud and wire fraud, Adams said.
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Never take government loans. Not worth the stress.
How many Billionaires are going to get sued for all their fleecing?
Small businesses? What about the banks who crashed the economy in 2007? How about the mega corporations who use the media to sway public opinion?
Hopefully they're starting with the companies that took the loans despite needing the loophole to qualify as anything other than a national chain...
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Treasury Secretary Steve Mnuchin calls for private schools with large endowments to return small business loans'It has come to our attention that some private schools with significant endowments have taken PPP loans,' Mnuchin wrote on Twitter, 'They should return them.' What about public schools with huge and profitable football programs? Greed knows no bounds. Harvard isn’t going to return the money.
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