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The firm is investigating claims that PPP lenders may be issuing fraudulent PPP lons and accepting illegal kickbacks from borrowers
May 04, 2021 , WASHINGTON — Today, the national law firm of Baron & Budd announced it is investigating claims that some banks and lenders may be exploiting the Paycheck Protection Program by issuing fraudulent loans in exchange for illegal kickbacks.
The Paycheck Protection Program (PPP) was implemented by the federal government to help small businesses stay afloat in the aftermath of the Coronavirus pandemic. Small businesses can apply for a PPP loan through a bank or lender, and if qualified, receive funds to help with payroll expenses, employee benefits, mortgages, and rent.
With trillions of dollars available in PPP funds, some banks and lenders have taken advantage of the program and actively recruited individuals who are not eligible for PPP loans, often not even small business owners, and offer to process a fraudulent PPP loan in exchange for an illegal kickback.
Sometimes the banks will refer to this kickback as a “fee,” however, as part of the PPP the federal government covers the cost of the bank processing fees. So, if a PPP lender requests or withholds any “fees” from the borrower’s loan amount, the bank is likely committing fraud.
“We have already heard of several cases in which unscrupulous borrowers have taken advantage of the PPP in order to line their own pockets and now some lenders may be doing the same,” said Baron & Budd Shareholder, Andrew Miller. “We are investigating these claims in an effort to hold these lenders accountable for defrauding the federal government and scamming American taxpayers out of millions of dollars.”
If you don’t own a small business but have been approached by a bank or lender about obtaining a PPP loan—or you know someone else who has—you may qualify to take legal action. Please call the national law firm of Baron & Budd at 866-700-8994 to learn more.
With more than 30 years of experience in Qui Tam cases, the attorneys on Baron & Budd’s whistleblower representation team have represented some 70 clients in government fraud cases returning over $5.4 billion to federal and state agencies, with whistleblower recovery shares as high as 49%. They are ready to help if you have evidence of fraud involving the Paycheck Protection Program.
Baron & Budd, P.C. is among the largest and most accomplished plaintiffs’ law firms in the country. With more than 40 years of experience, Baron & Budd has the expertise and resources to handle complex litigation throughout the United States. As a law firm that takes pride in remaining at the forefront of litigation, Baron & Budd has spearheaded many significant cases for hundreds of entities and thousands of individuals. Since the firm was founded in 1977, Baron & Budd has achieved substantial national acclaim for its work on cutting-edge litigation, trying hundreds of cases to verdict and settling tens of thousands of cases in areas of litigation as diverse and significant as dangerous and highly addictive pharmaceuticals, defective medical devices, asbestos and mesothelioma, California wildfires and environmental contamination, fraudulent banking practices, e-cigarettes, motor vehicles, federal whistleblower cases, and other consumer fraud issues.