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Everything You Need to Know About CARES Act Fraud

Are you facing charges for CARES Act fraud? Providing fraudulent statements, misusing, and/or committing any other act of deceit to defraud a government program is a serious criminal offense. A CARES Act Fraud defense lawyer is the only way to effectively fight and beat these serious allegations in a federal courtroom.

What is the CARES Act?

The CARES Act developed by the United States Federal Government to provide emergency assistance for those affected by the COVID-19 pandemic. The Federal Government allotted $2.2 trillion dollars in funding that allowed for enhanced tax benefits, grants, loan programs, and other incentives to help Americans during the pandemic.

CARES Act Provisions Included:

Cares Act lawyer
  • Americans who claimed itemized deductions were permitted to claim 100% of their AGI on their 2021 return.
  • Corporations were permitted to deduct 25% of their taxable income.
  • Stimulus Packages
  • Covid-19 Loan Programs for Small Businesses

These provisions were created to provided Americans with assistance programs to help offset the damaging financial consequences of Coronavirus 2019.

What is Cares Act Loan Fraud?

Any deceit used to obtain or misuse CARES act money is considered fraudulent criminal activity. These acts fall under a category of law called white collar crime. White collar crimes are considered very serious because they are motivated by financial gain.  The Cares Act is a federal program, and fraud would be a federal crime for which you will need a federal defense attorney to help you.

What are Examples of CARES Act Loan Fraud:

  • Making false statements to obtain funding from any CARES Act related funding program.
  • Creating a false business to acquire funds from a CARES Act small business disaster relief loan.
  • Misrepresentation of a legitimate business to obtain enhanced tax benefits.

What Happens if You Misuse Cares Act Funds?

Each program within the CARES Act provided funding on specific terms and for unique purposes. Failure to use these funds provided as the government intended is considered a misapplication of proceeds. This also applies to the non-use of the funds within 60 days of receiving the disbursement check.

What are the Penalties for Cares Act Fraud?

CARES Act fraud is serious crime and may result in multiple criminal charges; the prosecutors can try to attack on many different fronts to get a conviction. Penalties for a fraud conviction can include jail time, heavy financial penalties, and consequences for your career and to your personal and professional reputation.

A conviction for making false statements to any government agency may result in up to 5 years behind bars and fines of up to $250,000.

The severity of the penalties incurred will depend on several factors, including the charges, amount of money involved, and other unique circumstances in your case.

What Defense Strategies Can a Defense Lawyer Use?

Federal prosecutors will fight to prove that you committed fraudulent acts with the intent to deceive the US Government.

Some Examples of Possible Defenses to CARES Act Fraud Charges:

The fraud committed was an innocent mistake.

  • The defendant did not intent to commit fraud.
  • No fraudulent behavior occurred.
  • The defendant was a victim of coercion. 

Choose an experienced federal defense lawyer like Gregg Gallian to beat serious allegations of CARES Act fraud.

Contact Gregg Gallian for a CARES Act Fraud Defense Lawyer

Gregg Gallian is an experienced CARES Act fraud defense lawyer who has defended hundreds of fraud cases. Gallian Firm is known for being relentless in fighting for their clients.  As a former prosector, Gregg Gallian knows all of the tricks prosecuting attorneys will try to use against you to convict you of fraud charges.  He will aggressively take on each of these tricks and work to turn them to your favor.  Even if you have hired another attorney, you can reach out today to Gallian Firm for a free case evaluation.


Send a message to Gallian Firm and we will contact you as soon as possible.

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