As we have written, over the past year federal prosecutors across the country, including in the Eastern District of North Carolina, have cracked down on people and companies suspected of PPP fraud. One form of such fraud concerns false certification of eligibility.
PPP false certification of eligibility is when a business or individual provided false information to obtain PPP funds. In simple terms, if, in order to obtain PPP funds, an applicant intentionally misrepresented its number of employees, nature of its business, or the amount of payroll, among other things, that could be grounds for a PPP fraud prosecution.
PPP false certification of eligibility is a serious offense and can result in significant penalties and consequences. Businesses and individuals who committed false certification of eligibility may face civil and criminal charges, including fines and imprisonment. In addition to legal consequences, false certification of eligibility can result in harm to a business’s relationships with lenders, customers, and vendors.
