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 PPP Loan Fraud 

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Michael Santos

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Government investigations are bringing many people into the criminal justice system. As a result, more people will face charges for white collar crime. Learn steps to avoid these problems.

Wire Fraud and Money Laundering

On November 17, 2020, the DOJ indicted seven people for participating in the PPP Loan program. Their participation led to an indictment with multiple counts for wire fraud and money laundering.

The indictment’s press release stated:

Seven charged in connection with a COVID=Relief Fraud Scheme involving more than 80 fraudulent loan applications worth approximately $16 million.

DOJ Press Release

If the government prevails in trial, the defendants will face sentences in accordance with the amount of loss that shows up on a presentence investigation report. To learn more about how judges make sentence decisions, we offer insight into the federal sentencing guidelines.

Resources for White Collar Crime Charges

White collar crimes like wire fraud, mail fraud, and money laundering will begin with a base offense level of between six and eight, depending on certain characteristics. Then, the amount of loss will raise that offense level. In this case, the government alleges $16 million in loss. As the table in the link above shows, that would lift the sentencing range to between 70 and 87 months.

Click to read the Indictment

Enhancements could boost that sentencing range. Or, the defendants could take steps to mitigate the charges.

The free content available on our website helps people understand options available to them. Every decision the defendants make will come with opportunity costs. If they choose to contest the charges and go to trial, they will have to budget hundreds of thousands for legal fees. If they want to work toward mitigating their exposure, they need to architect a strategy. Ideally, they want to build a persuasive case that helps all stakeholders understand why each defendant is worthy of leniency, or mercy at sentencing.

In this case, the defendants have a lot of work ahead of them. The indictment alleges that they used the money to splurge on Lamborghinis and Porsches. Judges will want to know why.

In all cases, a person that faces a sentencing hearing is about to make the biggest sale of his life. We encourage people to think everything through. Whether a person faces a charge for a white collar crime, or for any charge that leads to a sentencing hearing, it makes a lot of sense to contemplate the mitigation strategy, and to work toward best outcomes.

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