Tuesday, January 24, 2023
HomeHealth LawStatute of Limitations for PPP and EIDL Fraud Prolonged to Ten Years

Statute of Limitations for PPP and EIDL Fraud Prolonged to Ten Years

On August 5, President Biden signed two payments into legislation that stretch to 10 years the statute of limitations for civil and prison enforcement actions for fraud on the Paycheck Safety Program (“PPP”) and Financial Damage Catastrophe Loans (“EIDL”). These two payments—the PPP and Financial institution Fraud Enforcement Harmonization Act of 2022 and the COVID-19 EIDL Fraud Statute of Limitations Act of 2022—had been each handed by Congress with bipartisan assist. 

The brand new legal guidelines present that the federal government shall be prosecuting COVID-19 reduction fraud for the foreseeable future. The federal government has already introduced dozens of civil and prison enforcement actions for PPP and EIDL fraud, with extra enforcement actions being introduced each week. The federal government’s inner assessment of PPP and EIDL loans have already flagged tens of 1000’s of probably fraudulent loans totaling a number of billion {dollars}, giving the federal government loads of alternatives to proceed enforcement via the remainder of the ten-year limitations interval. The ten-year limitations interval additionally provides the federal government extra time to research bigger fraud schemes, and to think about investigations into lenders on theories that they might have facilitated fraudulent loans via lax utility assessment procedures. If corporations and people who utilized for and obtained government-sponsored pandemic reduction funding haven’t carried out due diligence to make sure these funds had been correctly obtained, used, and doubtlessly forgiven, now could be the time to do it.



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