Paycheck Protection Program Fraud

When businesses and individuals abused the Paycheck Protection Program (PPP), they stole funds meant to keep American workers employed during the COVID-19 pandemic. Attorneys at Siri & Glimstad represent whistleblowers who have the courage to report PPP fraud and hold wrongdoers accountable under the False Claims Act.

The False Claims Act (FCA) is a federal law that enables ordinary people to help the government combat fraud. Under the FCA’s qui tam provisions, you can file a lawsuit against individuals or companies that submitted fraudulent claims to the United States. In the context of the Paycheck Protection Program, fraud occurs when borrowers made false certifications, misrepresented their eligibility, or misused loan proceeds that were guaranteed by the Small Business Administration (SBA) and funded with taxpayer dollars.

PPP fraud schemes can be hidden behind fabricated payroll records, shell companies, inflated employee counts, and falsified forgiveness applications.

• Submitting fraudulent loan applications with inflated payroll figures, fabricated employee counts, or fictitious businesses
• Obtaining multiple PPP loans using different business entities or identities for the same operation
• Misusing PPP loan proceeds on personal expenses, luxury items, or investments rather than eligible payroll and business costs
• Submitting false loan forgiveness applications misrepresenting how funds were spent
• Identity theft or use of stolen personal information to apply for PPP loans
• Collusion between borrowers and lenders to approve loans that should have been denied
• False certifications of economic necessity when the borrower had no genuine need

If you’re not sure whether what you saw “counts” as fraud, that’s normal. Many strong cases begin with a straightforward question: Did someone obtain or keep government money they were not entitled to because of false statements or misrepresentations?

PPP fraud is often difficult to detect from the outside. The SBA distributed hundreds of billions of dollars in loans with minimal upfront verification, relying on borrower self-certifications. Whistleblowers—including employees, accountants, bookkeepers, bank officers, and business partners—are often the only people who can connect the dots between a borrower’s actual financial condition and the false representations made on loan applications or forgiveness forms.

The FCA empowers a private individual (called a relator) to bring a case in the name of the United States. If a case succeeds, the relator may be eligible for a share of the recovery, often between 15% to 30% of the funds recovered by the government.

Timing and strategy matter. Missteps such as tipping off the wrong people, mishandling sensitive materials, or waiting too long can weaken a case or create avoidable risk. Experienced counsel can help you evaluate the facts, preserve information appropriately, and present the strongest possible case to the government. Because multiple whistleblowers may be aware of the same fraud, the FCA generally rewards the first person to file—making prompt legal consultation critical.

We focus on representing whistleblowers. Our job is to protect you while building the strongest possible presentation of the fraud for the government. Our support typically includes:

• Confidential case evaluation (what happened, how it connects to false claims submitted to the SBA, and where the strongest proof may exist)
• Evidence strategy and case development (organizing key documents, financial records, timelines, witnesses, and program impact)
• Preparing the required disclosure package for the government and drafting the sealed complaint
• Filing and managing the case under seal and communicating with DOJ attorneys and investigators
• Guiding you through the investigation phase (including interviews and follow-up requests)
• Litigation and resolution strategy (intervention, settlement, or continued prosecution)
• Protection from retaliation and advice on employment-related risk

The goal is simple: assist the government with investigating and understanding the scheme while helping you navigate the process safely and strategically. We walk you through every step of the process, ensuring your rights are protected and fighting for any share of the proceeds you may be entitled to. Speak Confidentially with an Attorney at Siri & Glimstad Today.

Federal law prohibits employers from retaliating against whistleblowers for engaging in protected activities while investigating or reporting FCA violations. Depending on the circumstances, remedies can include reinstatement, back pay, and other relief.

If you are worried about your job, your professional relationships, or your reputation, we will talk through risk and options, all completely confidential.

• Pre-Pandemic Financial Discrepancies: Tax filings (like Form 941s), payroll summaries, or bank statements showing that the business fabricated or heavily inflated its employee count and payroll costs to get a larger loan.
• Paper Trails of Personal Spending: Bank statements, wire transfers, or receipts showing that the PPP loan or forgiveness funds were used for non-qualifying expenses like luxury cars, personal real estate, or stock investments.
• Forgiveness Applications: False certifications submitted to the Small Business Administration (SBA) claiming that workers were retained when they were actually laid off.

Speak Confidentially with a PPP Fraud Whistleblower Attorney at Siri & Glimstad Today

If you have information about PPP loan fraud, you may be in a position to help recover stolen taxpayer funds and receive a significant financial reward. Contact Siri & Glimstad for a confidential case review now!