Articles Tagged with Chicago PPP Fraud Investigations: How Federal Cases Are Built and How Defendants Can Protect Themselves

The Reality Behind PPP Fraud Prosecutions in Chicago

Federal authorities in Chicago continue to pursue Paycheck Protection Program cases years after the loans were issued. What many business owners believed was emergency relief has, in some situations, become the basis for serious federal felony allegations. The Northern District of Illinois remains active in reviewing PPP applications, particularly where loan amounts were substantial or where investigators believe payroll figures were inaccurate.

PPP fraud cases are typically charged under federal statutes such as wire fraud under 18 U.S.C. § 1343, bank fraud under 18 U.S.C. § 1344, false statements to a financial institution under 18 U.S.C. § 1014, and conspiracy under 18 U.S.C. § 371. Each of these charges is a felony offense that can expose defendants to lengthy prison sentences, restitution, and significant financial penalties.