Paycheck Protection Program Fraud Task Force

Office of State Attorney
Dave Aronberg

15th Judicial Circuit
Serving the Citizens of Palm Beach County

Addiction Recovery Task Force

Office of State Attorney
Dave Aronberg

15th Judicial Circuit
Serving the Citizens of Palm Beach County

Paycheck Protection Program Fraud Task Force

The State Attorney’s Office and the Palm Beach County Sheriff’s Office recently started a Paycheck Protection Program Fraud Task Force. It will target individuals who defrauded the federal Paycheck Protection Program (PPP). Through the PPP, small businesses suffering from economic effects caused by the COVID-19 pandemic received billions of dollars in forgivable loans to pay for job retention and other expenses.

Have a tip for our task force? Please call the Tip Line: 1-844-324-5463

PPP (Payroll Protection Plan) Loan

$649 BILLION Business Loan Program established by the Federal Government through the Coronavirus Aid, Relief, and Economic Security Act to provide economic relief to small businesses and other certain entities adversely impacted by COVID-19.
SBA (Small Business Administration) guarantees the loans 100% and delegates 3rd party lenders to underwrite and approve the loans and to maintain files.
Loan funding’s are made by the delegated banks.
Loan can be forgiven as long as 60% is used in the 24 weeks post disbursement toward payroll costs
The remaining 40% is to be used for mortgage, rent and utility expenses

PPP Loan Overview

Borrower can use loan funds for:

Payroll and/or payroll-related expenses
Business mortgage or rent payments
Business utility payments
Interest on existing business loans
Certain other business operating expenses

Requirements for PPP Loan Approval

Business was in operation on 2/15/20
Current economic uncertainty makes loan necessary to support operations of the business
Funds will be used to retain workers or pay eligible expenses
Applicant does not have another PPP loan (except for 2nd draws)
Owner (or partner of 20% or more) can’t have been, within last 5 years:
- Incarcerated
- On Parole
- Subject to criminal indictment
- Convicted of a felony

Bank Record Analysis in SHTF Cases

PPP Loans granted to a large percentage of suspects/ suspect businesses.
PPP Loans granted to unqualified entities/ individuals utilizing fraudulent information.
Funds being utilized to enrich those entities/ individuals rather than as intended by the program.
Funds being utilized to fund other ongoing criminal conduct.
Contact with local law enforcement entities shows a similar pattern in their white collar fraud investigations.