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Guidelines On SBA Loan Fraud Penalties

During the Covid-19 pandemic, several business owners have availed benefits of the US Small Business Administration’s economic program. As the American families were given the required financial support with ease in payment plans, similarly, the business owners also got a chance to boost their financial condition during the pandemic. The business owners could continue working without any loss of income as the provisions under the CARES Act were lenient. Guidelines by an expert San Diego criminal defense attorney related to SBA loan fraud are recommended.

It was a low time, mentally and financially, yet many people found a quick way to fraud. The federal agencies and the office of the inspector general have noticed the situation and the opportunities wherein people got a chance to do wrong. It is not only the Government organizations that get affected but general people also get affected due to the wrongdoings of business owners. People have reported white-collar crimes, check fraud, price hikes, and SBA loan scams as the most repeatedly heard crime. The federal agencies are trying their best to put an end to such activities and all those who are caught under the SBA loan fraud have to face heavy penalties.

There is no direct way to avoid people committing such scams but you should know that one sign from your side and you will be on the direct radar of the federal authorities. Some of the scams that are circulating currently are:

Circulating illegal grants:

You will be charged for federal fraud if you initiate any loan or grant claiming as SBA. It should be noted that the SBA will never contact anyone granting a disaster loan or 7a. The federal authorities will keep an eye on such illegal activities.

Promising SBA loan:

The parties that promise quick approval of an SBA loan are surely a scam. You might get attracted towards the approval of a loan but soon they will ask for some payments to carry out the task. It is an alarming sign that there is some fraud going on. If you are caught under any such speculative activity, you will have to face federal charges. There are set limits for the fees that an SBA loan broker can charge to their customers. Any amount that exceeds the given limit will be considered a criminal activity that attracts severe charges.

SBA phishing scams:

There is a tremendous increase in the SBA phishing scams as the look-alike SBA logo attracts people. No one doubts seeing an exact copy of the logo and thinks that the SBA official has contacted them to grant the loan. Fraudsters have convinced many people to use the fake SBA logo which is difficult to differentiate from the real logo. 

These are some of how phishing scams or attacks generally complain. There might be many other ways but the Office of Inspector General who looks into such matters closely has asked people to first verify the email address. The fraudster would try to obtain your personal information, bank details, etc. but you need to get all the information and check twice before believing. 

SBA would send emails from their official accounts and it would always end with sba.gov and nothing else. So, do not just get carried away looking at the logo as it might be fake. You should not share personal details initially rather take time to get complete information on the SBA loan.

If you are found guilty in any of the above-discussed scenarios, serious loan fraud penalties are attracted. It includes:

  • As you know it is a federal offense, so federal penalties are charges for SBA loan fraud.
  • Fine and punishment both are charged if you committed mail and wire fraud. It means around 20 years in federal prison along with a fine.
  • Of course, the punishment also includes paying all the dues that the victim had to bear due to the fraud.
  • The securities fraud charges make it compulsory to experience imprisonment for 5 years every time the crime is committed depending on the total amount obtained as fraud.

Anyone facing such SBA loan fraud charges should discuss the case with the best San Diego criminal defense attorney for their guidance. With years of experience as a criminal defense attorney in San Diego, it is easy to throw light on the effective points in your favor. Vikas Bajaj, of the law office of Vikas Bajaj, has served for more than 20 years and can prove to be your best bet in such cases. He has the insights to know the actual way the system works and can prepare the best defense strategy. Contact our office to know more about the legal options you have.

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Fraud & Embezzelment

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