Corporate Audits for PPP Loan Fraud - Federal Lawyer
WSJ logo
Forbes logo
Fox News logo
CNN logo
Bloomberg logo
Los Angeles Times logo
Washington Post logo
The Epoch Times logo
Telemundo logo
New York Times
NY Post logo
NBC logo
Daily Beast logo
USA Today logo
Miami Herald logo
CNBC logo
Dallas News logo

Corporate Audits for PPP Loan Fraud

Due to a high volume of calls, we are able to only take those PPP clients who have received a PPP loan greater than $100,000. If your loan is less, we have created a list of PPP resources that should help you with any challenges that you might have.

PPP Resources:

Find an attorney to defend you
Find an attorney to help you obtain a loan
Report fraud/theft
How to apply for a loan on your own
What to do if the SBA doesn’t forgive your loan –

Dr. Nick Oberheiden is nationally recognized with his knowledge of PPP loan laws
and has been seen on Forbes, CNBC and Fox Business.
Speak with Dr. Oberheiden today for a free consultation at 888-680-1745.
Dr. Nick Oberheiden
Attorney Nick OberheidenCorporate Audits For PPP Loan Fraud
Team Lead
envelope iconContact Nick

The SBA is auditing many Paycheck Protection Program (PPP) loan recipients at the time they submit their forgiveness applications, and the DOJ is aggressively targeting companies for PPP loan fraud. Conducting a corporate audit can help ensure that your company is not at risk for prosecution.

Conducting a corporate audit can serve a number of important purposes. It can determine whether company personnel are complying with internal policies and procedures. It can help identify inefficiencies and systemic failures. And, it can help companies prepare for possible allegations of fraud.

For companies that received federally-backed, forgivable loans under the Paycheck Protection Program (PPP), the risk of facing fraud allegations is high. The U.S. Treasury Department and U.S. Department of Justice (DOJ) have identified widespread fraud under the program, and this has triggered a wave of audits and investigations. The U.S. Small Business Administration (SBA) is auditing many PPP loan recipients at the time they submit their forgiveness applications, and the DOJ has already filed criminal complaints in numerous cases of alleged PPP loan fraud.

Put our highly experienced team on your side

Dr. Nick Oberheiden
Dr. Nick Oberheiden



Lynette S. Byrd
Lynette S. Byrd

Former DOJ Trial Attorney


Brian J. Kuester
Brian J. Kuester

Former U.S. Attorney

Amanda Marshall
Amanda Marshall

Former U.S. Attorney

Local Counsel

Joe Brown
Joe Brown

Former U.S. Attorney

Local Counsel

John W. Sellers
John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara
Linda Julin McNamara

Federal Appeals Attorney

Aaron L. Wiley
Aaron L. Wiley

Former DOJ attorney

Local Counsel

Roger Bach
Roger Bach

Former Special Agent (DOJ)

Chris Quick
Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow
Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen
Ray Yuen

Former Supervisory Special Agent (FBI)

Conducting a Corporate Audit to Prepare for a PPP Loan Fraud Audit or Investigation

In order to mitigate the risk of receiving a repayment request (as opposed to being granted forgiveness) or facing allegations of civil or criminal fraud, PPP loan recipients can conduct internal corporate audits focused on proactively identifying and addressing any compliance concerns. Conducting corporate audits for PPP loan fraud allows companies to make informed decisions, and it allows them to prepare for any federal allegations that may be forthcoming.

At Oberheiden P.C., we assist companies with conducting corporate audits, and we also represent companies in federal audits and investigations. While our federal compliance and defense practice is general in scope, we are representing many companies with respect to PPP compliance and PPP loan fraud defense during the COVID-19 pandemic. Our firm is comprised entirely of senior-level attorneys and investigators, and we have handled thousands of audits and investigations across the country both as defense counsel and as former prosecutors and agents with the federal government.

When Should Companies Conduct Internal Audits Regarding PPP Loan Compliance?

For most PPP loan recipients, the question is not whether they should conduct an internal compliance audit, but rather when the audit should be conducted. Currently, we are advising many of our clients to conduct audits in four distinct situations:

1. There are Concerns about PPP Loan Compliance

If there are concerns about PPP loan compliance for any reason, then an audit should be initiated promptly in order to determine what issues exist and what needs to be done (or what can be done) in order to rectify them. Concerns about PPP loan compliance may arise due to issues and events such as:

  • Discovering that multiple departments submitted PPP loan applications
  • Learning about PPP rules and regulations of which company personnel were previously unaware
  • Learning that PPP loan funds have been used for unauthorized purposes
  • Having insufficient documentation of expenditures from the company’s PPP loan account
  • Having failed to adopt compliance policies and procedures prior to or upon the receipt of a PPP loan

When concerns such as these exist, the company’s priority should be to identify the scope of the issue and the company’s potential risk exposure, and then to take appropriate responsive or remedial action as soon as possible. Whether an issue can be fully rectified or it is necessary to focus on liability mitigation, the key is to be able to make informed decisions before the SBA or DOJ finds evidence of PPP loan fraud.

2. The Company has a High Volume of PPP Loan Transactions or has Multiple Employees Involved in Administering Its PPP Loan Account

For larger companies that received PPP loans, maintaining compliance with the terms of the program can present a number of administrative challenges. In order to demonstrate that the funds are only being used for authorized purposes (i.e. payroll expenses, mortgage interest or rent, insurance premiums, and utilities), companies must keep their PPP loans segregated from other corporate assets, and they must thoroughly document all expenditures from their PPP loan accounts.

To this end, personnel who have access to companies’ PPP loan accounts should be trained on the program’s requirements, and companies should adopt controls designed to ensure consistency in documentation and compliance. Compliance audits should then be conducted periodically to ensure that all internal policies and procedures are being followed; and, to the extent that they are not, appropriate remedial action should be taken promptly.

3. The Company is Preparing to Submit its PPP Loan Forgiveness Application

Prior to submitting applying for forgiveness under the PPP, companies must ensure that they qualify. Under a mandate from the U.S. Treasury Department, the SBA is auditing PPP loan recipients at the time they submit their forgiveness applications. As stated in the SBA’s Paycheck Protection Program (PPP) FAQs:

“To further ensure PPP loans are limited to eligible borrowers in need, the SBA has decided, in consultation with the Department of the Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.”

If the SBA determines that a company is ineligible for loan forgiveness under the PPP, it can demand repayment of the loan plus interest; and, if an audit uncovers possible evidence of fraud, a civil or criminal investigation could follow. Companies can mitigate these risks by conducting internal corporate audits and ensuring that they have the requisite documentation prior to submitting their applications for loan forgiveness.

4. The Company is Being Targeted in a Federal PPP Loan Fraud Audit or Investigation

Finally, if your company is being targeted in a federal PPP loan fraud audit or investigation, you need to know what federal agents are going to find before they find it. This means launching an internal corporate audit right away. Our firm conducts emergency audits for companies as necessary, and our senior attorneys and former federal agents can get to work immediately if necessary in order to get out in front of the investigation and build a proactive defense strategy.

In PPP loan fraud investigations, companies (and their owners and executives) can face a broad range of federal charges. These charges can carry substantial penalties. In order to assert a successful defense, company owners and executives need to have a clear understanding of the circumstances as they exist, and they need to be able to make strategic decisions based on accurate and reliable information. The only way to do this is by conducting an unbiased internal corporate audit with the oversight of experienced federal compliance and defense counsel.

Why have thousands of clients chosen Oberheiden P.C.?

  1. Only Sr. Attorneys– We don’t employ paralegals, Jr. Attorneys, or Secretaries. You will work directly with a Sr. Attorney who will keep you apprised on a regular basis regarding the details of your case.
  2. We Know The Government’s Playbook– Many of our attorneys previously worked for the government as federal prosecutors. Understanding the tricks, goals, and strategies of the opposing side gives us an advantage as we prepare our defense.
  3. We Have Secret Weapons– Our team of Former FBI, IRS, DEA, OIG, and Secret Service agents will use their experience in espionage, business investigations, and cyber forensics to find the nuanced details that can sometimes be the difference between a win or jail time.
  4. Unrivaled Results– While we have many tools at our disposal, our greatest asset is our high level of experience fighting the government. This experience has given us the privilege of winning over 2,000 cases on behalf of our clients.

I encourage you to compare our experience, results, and team with any local or national firm.

When you’ve been defending clients for as long as we have, there’s no trick we haven’t seen, likely no tactics we haven’t countered and no strategy we haven’t circumvented many times before.

If your reputation, livelihood, freedom, or career is at stake, call us today for a free consultation.

We will help you clearly understand what your options are and the best path forward.

Call now to confidentially discuss the details of your case: 888-680-1745

Dr. Nick Oberheiden

What is Involved in Conducting an Internal Corporate Audit for PPP Loan Fraud?

While there are several steps involved in conducting an internal corporate audit for PPP loan fraud, it is possible to execute these steps efficiently, and relying on experienced outside counsel can allow company owners and executives to gather the information they need without disrupting their day-to-day business operations. At Oberheiden P.C., we work with our clients’ executives and key stakeholders to outline the scope of their internal audits, and then we manage all aspects on the process to ensure that the audit is maximally effective and protected by the attorney-client privilege.

The critical steps involved in conducting an internal corporate audit focused on assessing Paycheck Protection Program compliance include:

  • Assemble the audit team
  • Collect all pertinent documentation
  • Evaluate all documentation collected
  • Assess any compliance risks or deficiencies
  • Determine next steps for compliance and/or defense

Learn more: Internal Audits and Investigations for PPP Compliance.

Why Choose Oberheiden P.C. for PPP Loan Fraud Audits, Investigations, and Defense?

Federal PPP loan fraud audits and investigations can lead to substantial repayment liability and the potential for civil or criminal penalties. As a result, companies need to take the necessary steps to ensure compliance with the terms and conditions of the Paycheck Protection Program, and they must rely on experienced outside counsel to uncover compliance deficiencies that have the potential to trigger invasive federal audits and investigations.

Here are five reasons why companies nationwide trust the federal attorneys and former federal agents at Oberheiden P.C.:

  • Federal Experience – Our former prosecutors and federal agents offer deep insights from prior experience with the DOJ, Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), and other agencies.
  • Federal Focus – Our firm’s practice is devoted to federal compliance and defense, and all of our attorneys and investigators have extensive experience in complex federal matters.
  • Nationwide Reach – With local affiliated counsel operating in cities across the country, we are able to efficiently represent companies nationwide.
  • 24/7 Accessibility – As a client of Oberheiden P.C., your company’s key personnel will have access to our senior attorneys and investigators 24/7.
  • Proven Results – We have helped companies in all industries across the country avoid federal charges through effective compliance and defense representation.

Speak with a Federal Compliance and Defense Lawyer at Oberheiden P.C.

If you would like to speak with one of our senior attorneys about conducting a corporate audit pertaining to PPP loan compliance, we encourage you to contact us promptly. For a free and confidential consultation, call 888-680-1745 or request a callback online now.

Why Clients Trust Oberheiden P.C.

  • 2,000+ Cases Won
  • Available Nights & Weekends
  • Experienced Trial Attorneys
  • Former Department of Justice Trial Attorney
  • Former Federal Prosecutors, U.S. Attorney’s Office
  • Former Agents from FBI, OIG, DEA
  • Serving Clients Nationwide
Email Us 888-680-1745
WordPress Lightbox