Forgiveness did not close the file
Many borrowers assume that once a Paycheck Protection Program loan was forgiven, the matter was finished. Federal agencies have continued to review these loans, and Congress lengthened the time the government has to bring PPP fraud cases. Reviews often begin with data matching, such as payroll that does not line up with tax filings or several loans traced to one person. A finding of error is not a finding of fraud, and many applications were prepared under guidance that kept changing. A criminal case generally requires proof that someone knew the information was false, which is a different question from whether the numbers were right.
People pulled in besides the borrower
PPP matters regularly reach people other than the business owner. Loan brokers, tax preparers, bookkeepers, and employees who supplied or signed payroll figures may be contacted as witnesses or examined for their own role. Lenders and the fintech platforms that processed applications have faced their own scrutiny. The civil False Claims Act also lets private individuals, such as former employees or business partners, file sealed lawsuits on the government's behalf, so a case can be underway before the borrower hears about it. If you prepared or handled applications for others, keep your client files intact and get advice before answering questions about them.
When you relied on someone else's figures
Reliance on an accountant or broker can matter, but it carries more weight when the records show what you gave them and what they told you. Gather the application exactly as submitted, the forgiveness request, payroll and tax records for the relevant period, and your communications with whoever prepared the paperwork. If the figures were wrong, whether and how to raise that, and with whom, is a decision for counsel rather than a quick email to the lender. Repayment, civil resolution, and criminal exposure affect one another, so we look at them together. Our first meeting maps who has contacted you, what they appear to want, and whether partners in the business need separate advice.
