Why PPP Loan Investigations in Illinois Have Become a Major Federal Priority
In the years following the COVID-19 pandemic, federal prosecutors have continued to pursue alleged misuse of Paycheck Protection Program funds throughout Chicago and the surrounding Illinois counties. What began as emergency economic relief has evolved into a major enforcement focus for agencies such as the FBI, IRS Criminal Investigation Division, and the Small Business Administration Office of Inspector General. Business owners across Cook County have learned that even loans obtained during the height of the crisis may later become the subject of detailed federal review.
The Paycheck Protection Program was authorized by Congress under the CARES Act and administered through federally backed lenders. Because federal money was involved, alleged misrepresentations frequently lead to prosecution under federal criminal statutes. The most common charges include wire fraud under 18 U.S.C. §1343, bank fraud under 18 U.S.C. §1344, false statements under 18 U.S.C. §1014, and conspiracy under 18 U.S.C. §371. Each of these offenses is classified as a felony and carries significant potential prison exposure.
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