An Enforcement Blast from the COVID Past: DOJ Aggressively Targeting PPP Loan Recipients [Bloomberg Law]

Abstract

The US government has recently embarked on a quiet but active campaign against Paycheck Protection Program recipients believed to have submitted inaccurate information as part of their applications. Although the government has long been prosecuting cases of outright PPP fraud, it now appears to be shifting its focus to cases involving more technical noncompliance with the Small Business Administration’s complex (and often confusing) PPP regulations.

Given the potential risk of civil False Claims Act actions and criminal prosecutions as well as the serious reputational damage typically accompanying such enforcement actions, those who are currently in the government’s enforcement crosshairs—or who may find themselves there in the future—should take proactive steps to understand and limit their legal and reputational exposure.