We have received questions regarding federal PPP Loans or payment protection plan. If you or someone you know have had issues regarding PPP loans or have discovered PPP loan fraud, please contact us here.
The Payment Protection Plan federal loan program was implemented to protect small businesses from the unprecedented impact of the Covid-19 virus. It encouraged companies to retain employees to prevent massive layoffs. Many companies took advantage of the grants and low-interest loans to keep most of their employees.
Some businesses abused the program. Some major restaurant chains were scolded for taking federal loan money because of their corporate structure. Other companies defrauded the government.
A story from Florida illustrates blatant abuse. David Hines thought that he could outsmart the government. Hines reported on his PPP loan application that his business had monthly expenses of 4 million dollars. This first round of funding wasn’t enough for Mr. Hines’ “business,” and he eventually requested over 13 million dollars in federal loans. Mr. Hines’ attorney maintains that he is a legitimate business owner.
Some of the “business” expenses Hines used PPP money for included a $318,000 blue Lamborghini and over $8,000 worth of jewelry. You can read more about this developing story here. If you discover a company that has committed fraud upon the federal government we can help.
At the Law Offices of Warner Mendenhall, we fight against fraud to recover funds for the government. Initial consultations are free.