Do you have Flagged Ppp Loans? Do you want to find out what this means for you? Continue reading to find out more about Flagged Ppp loans.
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What is Flagged Ppp Loans?
Flagged Ppp Loans are simply put, loans that have been marked or reported as being fraudulent.
Banks are flagging certain things as suspicious and handing those cases over to the government. For instance, your business only a couple of weeks old when you applied for the loan—automatic red flag. Very few businesses were able to open a couple of months before the pandemic and grow their payroll that fast. A lot of people took out these loans through their existing banks, so the banks are also able to look at their personal history. The bank could see that a person who never has more than a couple thousand in their account is suddenly claiming they have a $10,000-a-month payroll supporting five different employees. That’s another red flag.
After a PPP loan is flagged – you should contact our PPP loan fraud lawyers immediately. Responding to the subpoena or investigative request is a task which must be taken seriously.
As it is now,loans over $2 million are by default – audited. If you took a loan that is under $2 million, and it is flagged. It could be that one of your employees is a whistleblower, and as a result is bringing an action against you – by helping the government identify theft and fraud. These cases are known as qui tam cases. There are strict employment and federal laws on how you can deal with such scenarios. You cannot obstruct the government, or retaliate against the employee.
Reasons why PPP Loans may be flagged.
There are so many reasons why a Ppp Loan might be flagged and these include:
- The company applied for multiple PPP loans from different lenders
- The company made false statements on their PPP loan application
- They submitted an incomplete PPP loan application
- Used PPP loan funds for unapproved expenses
- Submitted false certification to receive PPP loan forgiveness
What Happens when your Ppp Loan is flagged
After this happens, you get served a subpoena, and you need to hire a PPP loan fraud defense lawyer that can help you.
Bottom line is if your PPP loan is flagged – you should assume you are under investigation for PPP loan fraud. This is essentially the beginning of the PPP loan fraud investigation. Get a good PPP loan fraud defense lawyer, to help and guide you through the process.
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