The firm is investigating claims that PPP lenders may be issuing fraudulent PPP loans and accepting illegal kickbacks from borrowers
Today, the national law firm of Baron & Budd announced it is investigating claims that some banks and lenders may be exploiting the Paycheck Protection Program by issuing fraudulent loans in exchange for illegal kickbacks.
“We are investigating these claims in an effort to hold these lenders accountable for defrauding the federal government and scamming American taxpayers out of millions of dollars.”
The Paycheck Protection Program (PPP) was implemented by the federal government to help small businesses stay afloat in the aftermath of the Coronavirus pandemic. Small businesses can apply for a PPP loan through a bank or lender, and if qualified, receive funds to help with payroll expenses, employee benefits, mortgages, and rent.
With trillions of dollars available in PPP funds, some banks and lenders have taken advantage of the program and actively recruited individuals who are not eligible for PPP loans, often not even small business owners, and offer to process a fraudulent PPP loan in exchange for an illegal kickback.
Sometimes the banks will refer to this kickback as a “fee,” however, as part of the PPP the federal government covers the cost of the bank processing fees. So, if a PPP lender requests or withholds any “fees” from the borrower’s loan amount, the bank is likely committing fraud.
“We have already heard of several cases in which unscrupulous borrowers have taken advantage of the PPP in order to line their own pockets and now some lenders may be doing the same,” said Baron & Budd Shareholder, Andrew Miller. “We are investigating these claims in an effort to hold these lenders accountable for defrauding the federal government and scamming American taxpayers out of millions of dollars.”
If you don’t own a small business but have been approached by a bank or lender about obtaining a PPP loan—or you know someone else who has—you may qualify to take legal action. Please call the national law firm of Baron & Budd at 866-359-5392 to learn more.
With more than 30 years of experience in Qui Tam cases, the attorneys on Baron & Budd’s whistleblower representation team have represented some 70 clients in government fraud cases returning over $5.4 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of fraud involving the Paycheck Protection Program.