What Should You Do if You Are Under Investigation for PPP or ERC Fraud in Boston?

The Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ) are continuing to investigate pandemic-era fraud. This specifically includes fraud under the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) programs. Learn what you need to know if you are facing an IRS or DOJ investigation from Boston criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group:

Responding to a PPP or ERC Fraud Investigation in Boston

Federal investigations targeting pandemic-era fraud present substantial risks. Federal estimates put the total cost of PPP fraud and ERC fraud in the hundreds of billions of dollars, and the IRS and DOJ are continuing to work aggressively to recover as much of this money as possible.

With this in mind, individuals and companies facing PPP- and ERC-related investigations need to prioritize their defense. Among other things, this means that they should:

• Locate and Preserve Relevant Documents – Individuals and companies facing federal investigations need to take care to preserve all relevant documents. Locating relevant documents will also be essential to evaluating their risk exposure.
• Assess Their PPP or ERC-Related Risk – After locating relevant documents, targeted individuals and companies should assess their risk related to PPP or ERC. This includes the risk of facing both criminal prosecution and civil liability for unintentional violations.
• Prepare for All Potential Forms of Inquiry – The IRS and DOJ use search warrants, subpoenas, and various other methods to obtain information in support of their investigative efforts. Targeted individuals and companies should ensure they are prepared to respond effectively to all forms of inquiry—whether they receive a subpoena in the mail or federal agents show up at their door.
• Develop a Cohesive Defense Strategy – Avoiding unnecessary liability during a PPP fraud or ERC fraud investigation requires a cohesive defense strategy. To avoid unnecessary consequences, targeted individuals and companies must be prepared to effectively defend against all potential grounds for civil or criminal liability.  
• Target a Resolution that Avoids Federal Charges – Working with their defense counsel, targeted individuals and companies should work to steer the IRS’s or DOJ’s investigation toward a resolution that avoids federal charges. Whether this involves targeting a settlement or seeking to avoid liability entirely will depend on the circumstances at hand.

Again, these are just examples of some of the steps that need to be taken. Defending against a PPP or ERC fraud investigation requires a comprehensive, custom-tailored approach. Engaging experienced defense counsel is the first step in the process.

Speak with Boston Criminal Tax Lawyer Kevin E. Thorn in Confidence

Boston criminal tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, has extensive experience representing clients in federal investigations related to the PPP and ERC. If you are facing (or your company is facing) scrutiny from the IRS or DOJ, we encourage you to contact us promptly for more information. Call 617-692-2989 or tell us how we can reach you online to arrange a confidential consultation as soon as possible.