Federal Defense Attorneys Representing Business Owners and Other Individuals in the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Fraud Cases in San Diego
In response to the COVID-19 pandemic, the U.S. Small Business Administration (SBA) offered Economic Injury Disaster Loans (EIDL) to small businesses and nonprofit organizations in San Diego and nationwide. While the SBA is no longer accepting EIDL applications, it is still processing EIDL applications received before the deadlines for these programs, and the U.S. Department of Justice (DOJ) is actively targeting alleged fraud involving EIDL applications and funds.
Why Have I Been Contacted By the SBA or DOJ About EIDL Fraud?
Due to the volume of loans it needed to issue, the SBA’s review of EIDL applications was cursory at best. Now, armed with additional personnel and enhanced investigative capabilities, the SBA’s Office of Inspector General (OIG) is reviewing past EIDL applications.
What Constitutes EIDL Fraud Under Federal Law?
EIDL fraud can take many different forms, including:
- Making fraudulent statements on EIDL applications
- Falsifying documents and submitting them to the SBA
- Applying for EIDL on behalf of ineligible businesses
- Obtaining multiple EIDL in violation of program requirements
- Using EIDL funds for unauthorized purposes
Potential charges include:
- False Statements to a Financial Institution (18 U.S.C. § 1014)
- Aggravated Identity Theft (18 U.S.C. § 1028A)
- Wire Fraud (18 U.S.C. § 1343)
- Bank Fraud (18 U.S.C. § 1344)
- Fraud in Connection with Major Disaster (18 U.S.C. § 1040)
Penalties can include up to a $1 million dollar fine and 30 years of federal imprisonment.
FAQs: Defending Against Allegations of EIDL Fraud in San Diego
Is EIDL Fraud a Federal Criminal Offense?
Yes, EIDL fraud is a federal criminal offense.
Can I Go to Jail if I am Convicted of EIDL Fraud?
Yes, depending on the statute under which you are charged, you could be facing up to 30 years of federal imprisonment.
To speak with a federal EIDL fraud lawyer in San Diego, call 908-643-7005.
Written By
Todd Spodek
Todd Spodek is the Managing Partner of Spodek Law Group P.C. He is a second-generation trial attorney who has been recognized as one of the Top 100 Trial Lawyers in the country. He has represented clients in some of the highest-profile federal criminal cases in the Eastern District of Pennsylvania and beyond.
