SBA Fraud Defense

Federal Defense Lawyers for Individuals and Companies Targeted in SBA Fraud Investigations

Attorney Nick OberheidenSBA Fraud Defense Team Lead

The U.S. Small Business Administration (SBA) routinely targets individuals and companies in fraud investigations. These investigations frequently involve federal authorities from the SBA’s Office of Inspector General (OIG), which works with the U.S. Department of Justice (DOJ) to prosecute all forms of fraud, waste, and abuse under SBA programs. As a result, SBA fraud investigations can present substantial risks, and avoiding unnecessary consequences during these investigations requires an informed and strategic defense.

At Oberheiden P.C., we rely on extensive experience—including prior experience within the SBA OIG—to defend individuals and companies in SBA fraud matters. We handle matters involving all SBA programs as well as federal small business contracts and the “small business subcontracting plan” requirement for large prime government contracts. If you have been contacted by the SBA OIG (or if you are facing an indictment or federal charges following an SBA investigation), we can help, but it is important that you contact us promptly.

Our SBA Fraud Defense Team

Our SBA fraud defense team consists of both experienced federal criminal defense lawyers and former federal agents who assist with protecting our clients during SBA fraud investigations. This includes former SBA OIG Special Agent in Charge Kari Overson. During her time with the SBA OIG, Kari oversaw SBA fraud investigations across 14 states, and she played an integral role in securing indictments and convictions that resulted in the recovery of tens of millions of dollars in taxpayer funds.

All of the attorneys and consultants on our SBA fraud defense team have senior-level experience. Unlike many other law firms, we do not employ junior associates. When you are facing scrutiny from the SBA OIG, you cannot afford to take chances. You need experience on your side, and you need a defense team that can begin advising you and interfacing with the SBA OIG on your behalf immediately.

SBA Fraud Matters We Handle

We serve as defense counsel for all types of SBA fraud investigations targeting federal contractors, SBA program participants, SBA grant and loan recipients, and other individuals and entities. We also handle federal prosecutions resulting from SBA fraud investigations. This includes (but is not limited to) investigations and prosecutions involving allegations of:

SBA Grant Fraud

The SBA administers several grant programs that provide funding to nonprofits, educational organizations, community organizations, and other qualifying entities. While the SBA also provides grants to qualifying small businesses engaged in scientific research and development, it does not provide general grants for starting or expanding for-profit businesses—although it routinely issues warnings about fraud schemes targeting small business owners with purported SBA grant opportunities.

We defend nonprofits and other entities accused of fraudulently obtaining grants from the SBA. We also defend individuals accused of perpetrating SBA grant fraud schemes targeting small business owners. This includes providing defense representation for matters involving SBA grant programs such as:

Small Business Innovation Research (SBIR) grants
Small Business Technology Transfer (STTR) grants
Grants awarded to community organizations supporting veteran-owned businesses
Grants awarded to Small Business Development Centers (SBDCs)
Grants awarded to other SBA Resource Partners

Regardless of the specific allegations you are facing, our SBA fraud defense team can work quickly to build a defense strategy focused on helping you avoid unnecessary consequences.

SBA Loan Fraud

We also defend individuals and entities facing allegations of SBA loan fraud. In addition to administering several grant programs, the SBA also administers several loan programs that provide funding to both nonprofit and for-profit entities. SBA loan fraud investigations can involve a wide range of allegations, including (but not limited to):

Misrepresenting eligibility for an SBA loan
Submitting false financial data in support of an SBA loan application
Submitting forged or fraudulent documentation in support of an SBA loan application
Misusing SBA loan funds (i.e., using SBA or PPP loans for personal expenditures)
Creating shell companies and using unaffiliated businesses’ information to apply for SBA loans or Economic Injury Disaster Loan program

The SBA has prioritized loan fraud enforcement in recent years, including (but not limited to) targeting fraud under pandemic-era and other disaster relief loan programs. These investigations can present substantial risks, and executing a strategic defense during the investigative process can be critical for avoiding the possibility of facing a conviction at trial.

Federal Procurement Fraud Involving Small Businesses

We also defend federal prime contractors and subcontractors in federal procurement fraud cases. The SBA OIG often plays a central role in federal procurement fraud investigations involving contracts awarded to (or intended to be awarded to) small businesses as well as alleged violations of the “small business subcontracting plan” requirement for prime government contracts.

Federal procurement fraud investigations involving the SBA OIG can also involve a wide range of allegations. Some of the most common allegations in these matters include:

Creating “sham” small businesses to bid for federal contracts or serve as subcontractors
Engaging in collusion and other forms of bid rigging
Misrepresenting companies as veteran-owned or woman-owned businesses
Misrepresenting compliance with a small business subcontracting plan
Misrepresenting compliance with the eligibility criteria for a federal contract or compliance with federal contract terms

Again, these are just examples. When facing scrutiny from the SBA OIG (or the DOJ), it is critical to ensure that you have an accurate understanding of the allegations at issue. Our SBA fraud defense team can work quickly to discern why you are facing scrutiny, and then we can build and execute a defense strategy that is tailored specifically to the circumstances and allegations at hand.

SBA Phishing Scams

Along with grant fraud schemes, the SBA targets individuals and entities suspected of perpetrating other types of SBA phishing scams as well. It routinely issues warnings about phishing scams, and it encourages small business owners and others to report suspected phishing scams to the SBA OIG. Individuals and entities targeted in SBA phishing scam investigations can face serious federal charges, including charges that carry substantial fines and prison terms.

Pandemic-Era SBA Fraud (Including PPP Fraud)

The SBA and DOJ are continuing to aggressively target fraud under the Paycheck Protection Program (PPP) and other pandemic-era relief programs. Fraud under these programs cost the federal government billions—and potentially trillions—of dollars in taxpayer funds. Seeking to recover PPP loan funds is proving to be a long-term process. The SBA and DOJ are targeting both successful and unsuccessful loan applicants on PPP loan fraud. They are pursuing both civil and criminal charges under the False Claims Act (FCA) and other federal statutes during PPP loan fraud investigations. We have extensive experience in these matters as well; and, as a result, our lawyers and consultants are intimately familiar with the specific issues involved.

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

FAQs: Facing (and Defending Against) Allegations of SBA Fraud

How Does the SBA OIG Identify Targets for Fraud Investigations?

The SBA OIG identifies targets for fraud investigations through various means. While it relies heavily on victims and whistleblowers to come forward, the SBA OIG also works with other federal law enforcement agencies, small business lenders, and other third parties to uncover potential fraud, waste, and abuse.

What Are the Risks of Facing an SBA Fraud Investigation

The risks of facing an SBA fraud investigation are substantial. Most of these investigations involve allegations under the False Claims Act, which prohibits the submission of “false and fraudulent” claims to the federal government. The False Claims Act includes provisions for both civil and criminal enforcement, with potential penalties ranging from fines to federal imprisonment. In criminal enforcement cases, the SBA OIG may work with the DOJ and federal prosecutors to pursue a variety of other federal charges as well.

What is the SBA OIG?

The SBA OIG is the law enforcement arm of the Small Business Administration. It is responsible for “provid[ing] independent, objective, and timely oversight to improve the integrity, accountability, and performance of SBA and its programs.” The SBA OIG has broad authority to conduct investigations into suspected fraud, waste, and abuse, and it works closely with the DOJ to pursue criminal charges when warranted.

What Should I Do if I Have Been Contacted by the SBA OIG?

If you have been contacted by the SBA OIG, you need to be very careful. This could mean that you are facing allegations of SBA fraud—and, if so, you are at risk of facing substantial penalties. In this scenario, your first course of action should be to consult with an experienced SBA fraud defense lawyer as soon as possible.

When Do I Need an SBA Fraud Defense Lawyer?

We strongly recommend contacting an SBA fraud defense lawyer as soon as you learn that you are facing (or may be facing) scrutiny from the SBA OIG. By the time you find out that you are the target of an SBA OIG investigation, the investigation is almost certainly well underway. To protect yourself to the fullest extent possible, you will need an experienced SBA fraud defense team on your side.

Contact the SBA Fraud Defense Team at Oberheiden P.C.

If you need to know more about defending against SBA fraud allegations, we encourage you to contact us promptly. To speak with a member of our SBA fraud defense team in confidence as soon as possible, call 888-680-1745 or tell us how we can reach you online now.