Recent examples are emphasized for significant risks for small business owners who sail in infectious diseases, as the residents of Missouri recognize a significant fraud system aimed at the PPP (PayCheck Protection Program) and EIDL (Economic Injury Disaster Loan) programs. This case reminds you that you need a boundary when applying for support in the complexity of economic recovery.
The 42 -year -old Shawn Nicholas Young is seriously legally influenced by pleading guilty of fraud, including more than 100 fraudulent applications for infectious diseases. Young has attempted to secure more than $ 9.5 million loans to support legitimate small businesses during the Covid-19 crisis by false statements of major details for multiple businesses, including fake tax declarations and backdate documents. Ultimately, he earned almost $ 1.65 million in funding for his personal expenses such as mortgage payments and new cars.
US lawyer Nicholas J. Ganjei emphasized the meaning of this case, saying, «This type of serious behavior undermines the purpose of these relief programs designed to help small businesses desperately need.» On October 27, the upcoming sentence of Young was able to show him the serious consequences of fraud in the small business sector by landing a heavy fines of $ 250,000 in federal prisons.
As small business administration (SBA) and various federal agencies continue to monitor and investigate the scams related to infectious diseases, this case shows the problems and risks faced by the business owner when applying for relief. In order to fight these fraudulent activities, the establishment of the Covid-19 Fraud Execution Task Force, which emphasizes an active approach to protecting public resources by cooperating with various institutions. The Task Force aims to prosecute a famous fraud case, as well as strengthen the adjustment between institutions that perform the mission to supervise these important relief programs.
For small business owners, the meaning of this case is profound. When completing the loan application, it brightens the necessity of due diligence. False statements of information can cause criminal charges, financial compensation, and personal and professional reputation. SBA emphasizes the importance of honesty and accuracy in submission. All inconsistency can result in serious legal results.
Small companies must understand the current environmental and loan applications. These relief programs are important for many, but the supervision is increasing. Business owners must maintain an accurate record to set transparency priority and to prevent potential traps.
This case also serves as an inquiry for behavior for small business communities. The SBA and the Ministry of Justice are encouraged to report their age anyone who suspects fraudulent activities related to the Covid-19 Assistance program. Small business owners can report suspected fraud through the Ministry of Justice’s National Disaster Fraud Hotline Center.
As the environment of small business support continues to develop, the owner must provide information and actively maintain the approach to these relief options. The potential advantage of securing funds may be significant, but the stake in wrong management has never increased.
For more information on continuous fights on small business fraud and essential resources for small businesses, visit the link provided to SBA’s original release. here.
Image through ENVATO
