PPP Fraud Whistleblower Attorney in New York, NY

We are still feeling the effects of COVID-19 today. In response to the unprecedented closing of small businesses during the pandemic, the federal government created the Paycheck Protection Program (PPP) to keep small companies afloat with forgivable payroll loans. Many business owners in Manhattan needed these loans to keep their stores open and employees paid, but the program was inundated with fraud.

The Small Business Administration (SBA) estimates that almost $64 billion in PPP funds were obtained through fraud, and the government is still investigating these claims. If you have information related to an employer or business associate’s potential payroll loan fraud during the pandemic, you need New York whistleblower attorney Peter Katz.

Understanding Federal Whistleblower Protections

‘Whistleblowing’ is a legal term used to describe someone, generally an insider or employee, who reports illegal workplace activities to law enforcement. Most whistleblower cases involve financial fraud, such as making false tax claims or obtaining loans using false information. They could also involve information related to how certain earmarked funds, such as payroll loans, were misused.

Various federal laws protect whistleblowers from employer retaliation for filing claims, providing information, or otherwise participating in an investigation. However, many whistleblowers realistically face significant workplace challenges after coming forward with information related to fraudulently obtained or used PPP funds. Working with a dedicated whistleblower lawyer in New York could help minimize the impact of blowing the whistle and even result in significant financial payouts.

Reporting PPP Fraud Under the False Claims Act (FCA)

PPP loan fraud generally involves allegations that an employer engaged in one or more of the following unlawful activities:

• Made false statements on the PPP loan application
• Misused PPP funds
• Submitted false supporting documents
• Engaged in loan stacking
• Hid evidence of PPP loan misuse
• Forged payroll or employee records to obtain funding
• Applied for loan forgiveness using false statements

The government primarily charges individuals with PPP fraud under the False Claims Act (FCA), which offers financial incentives to whistleblowers who come forward with information regarding potential fraud. You may do this anonymously if you’re not looking for a monetary reward. Still, you may also use the legal protections afforded by a federal whistleblower lawyer in New York to make the initial report on your behalf.

Financial Incentives for Reporting Pandemic-Related Loan Fraud in New York

Under the FCA, blowing the whistle on high-value PPP loan fraud may result in significant financial payouts. Whistleblowers may be eligible to recover between 15% and 30% of any eventual economic recovery, either through a personal action, known as a qui tam lawsuit, or through government intervention. However, you must provide essential fraud-related information either before it’s provided by another co-worker or through a jointly filed lawsuit.

Confidentially Discuss PPP Fraud with an Experienced Whistleblower Lawyer

If you suspect your employer engaged in loan fraud during the pandemic, including lying on the PPP loan application or misusing loan funds, confidentially discuss your rights with PPP whistleblower attorney Peter Katz. He might help you file a claim and recover a significant financial reward for holding employers accountable. Call (609) 849-3179 or connect with his Manhattan office online today.