As a result, in pursuing cases for PPP loan fraud, the DOJ is relying on pre-existing federal statutes. For example, to date, the DOJ has filed criminal complaints in PPP loan fraud cases containing charges that include:Aggravated Identity Theft (18 U.S.C. § 1028A)Attempt (18 U.S.C. § 1349)Bank Fraud (18 U.S.C. § 1344)Conspiracy (18 U.S.C. § 371 and 18 U.S.C. § 1349)Making False Statements to the Small Business Administration (SBA) (18 U.S.C. § 1014)Making False Statements to an FDIC-Insured Bank (18 U.S.C. § 1014)Making False Statements to Federal Agents (18 U.S.C. § 1001)Tax Evasion (26 U.S.C. § 7201)Wire Fraud (18 U.S.C. § 1343)This is consistent with the DOJ’s approach to combatting fraud targeting other types of federal government programs. Title 18 of the U.S. Code offers numerous ways for federal prosecutors to pursue charges—including charges that are not specific to any one type of fraudulent act or one specific federal program.

The term “aggravated felony” is defined at 8 U.S.C. § 1101(a)(43), and the various aggravated felony offenses are enumerated in subsections in relevant part- (M). M. Fraud and Deceit Offenses.8 U.S.C. § 1101(a)(43)(M) provides “an offense that – (i) involves fraud or deceit in which the loss to the victim or victims exceeds $10,000; or (ii) is described in [26 U.S.C. § 7201] (relating to tax evasion) in which the revenue loss to the Government exceeds $10,000” is an aggravated felony.As a general matter, an alien convicted of an aggravated felony is statutorily ineligible for most forms of discretionary relief from removal, including cancellation of removal and asylum, although the alien may, under certain narrow circumstances, be eligible for adjustment of status and a waiver of inadmissibility under 8 U.S.C. § 1182(h). Notwithstanding an aggravated felony conviction, any alien may apply for deferral of removal under the United Nations Convention Against Torture regulations if they fear torture upon returning to their home country.

Kawashima, No. 10-577, slip op. at 8. On the contrary, “We think it more likely that Congress specifically included tax evasion offenses under 26 U. S. C. § 7201 in Clause (ii) to remove any doubt that tax evasion qualifies as an aggravated felony.” Kawashima, No. 10-577, slip op. at 8.

Here is a copy of the indictment of Zuberi, if you want to learn more about this charming guy, who donated to Republicans and Democrats alike.13. On November 22, 2019, in United States v. Zuberi, CR 19-642-VAP, Zuberi pleaded guilty to a FARA offense in violation of 22 U.S.C. §§ 612, 618(a)(2), Federal Election Campaign Act offenses in violation of 52 U.S.C. §§ 30116, 30118, 30121, 30122, 30109(d)(1), and tax evasion in violation of 26 U.S.C. 7201. All the aforementioned charges were unrelated to the instant investigation.

Taxpayers should expect the government’s criminal efforts to detect employment tax violations to continue for the foreseeable future. In light of these efforts, taxpayers should carefully consider their options, which may include submitting a disclosure under the VDP.See I.R.C. § 6651(a)(1) (failure-to-file); § 6651(a)(2) (failure-to-pay); § 6656 (failure-to-deposit).See I.R.C. § 6672.See I.R.C. § 7201 (tax evasion); § 7202 (willful failure to collect or pay over tax); § 7206 (false statements).See IRM pt. 25.1.8.3 (7-15-2021).See U.S. v. Sertich, 879 F.3d 558 (5th Cir. 2018) (affirming 41 months of imprisonment and 3 years of supervised release on substantially similar facts).See U.S. v. Lord, 404 Fed. Appx. 773 (4th Cir. 2010) (affirming 21 months of imprisonment and 3 years supervised release on substantially similar facts).

The General Statute of Limitations. Pursley was indicted for one count of conspiracy under 18 U.S.C. § 371 and three counts of tax evasion under 26 U.S.C. § 7201. The Fifth Circuit recognized that, without any suspension of the statute of limitations, the general 6-year statute of limitations applied to both of these criminal offenses.

However, many company executives, small business owners, and other individuals are also likely to face allegations of making false statements to the SBA and other federal crimes based solely upon submitting false information in their PPP loan applications. Depending on the specific circumstances involved, individuals targeted in SBA loan fraud investigations during the COVID-19 crisis could face federal charges under statutes including:False Claims Act (31 U.S.C. §§ 3729 – 3733)False Statements to the Government (18 U.S.C. § 1001)Making False Statements to the SBA or an FDIC-Insured Bank—Loan or Credit Applications (18 U.S.C. § 1014)Bank Fraud (18 U.S.C. § 1344)Wire and Mail Fraud (18 U.S.C. § 1343)Aggravated Identity Theft (18 U.S.C. § 1028A)Tax Evasion (26 U.S.C. § 7201)Attempt (18 U.S.C. § 1349)Conspiracy to defraud the United States (18 U.S.C. § 371 and 18 U.S.C. § 1349)Making False, Fictitious or Fraudulent Claims (18 U.S.C. § 287)Misrepresentations to the SBA (15 U.S.C. § 645(d))When targeted in an SBA audit or a federal criminal investigation, it is essential to respond with a comprehensive, cohesive, and proactive defense. This is true whether the audit or investigation is still ongoing, or a criminal complaint has been filed and an indictment is pending.

In certain circumstances, criminal penalties may apply. See, e.g., I.R.C. § 7201 (tax evasion), I.R.C. § 7203 (failure to file), I.R.C. § 7206 (fraud and false statements), 31 U.S.C. § 5322 (willful failure to file an FBAR). However, there are a number of different programs and compliance initiatives, such as the Streamlined Filing Compliance Procedures, Delinquent International Information Return Submission Procedures, and Delinquent FBAR Submission Procedures, that may be used to mitigate these penalties.

(h) One of such offenses is enterprise corruption in violation of section 460.20 of the penal law, racketeering in violation of federal law or any comparable offense pursuant to the law of another state and a separate or subsequent prosecution is not barred by section 40.50 of this article.(i) One of the offenses consists of a violation of 18 U.S.C. 371, where the object of the conspiracy is to attempt in any manner to evade or defeat any federal income tax or the payment thereof, or a violation of 26 U.S.C. 7201, 26 U.S.C. 7202, 26 U.S.C. 7203, 26 U.S.C. 7204, 26 U.S.C. 7205, 26 U.S.C. 7206or 26 U.S.C. 7212(A), where the purpose is to evade or defeat any federal income tax or the payment thereof, and the other offense is committed for the purpose of evading or defeating any New York state or New York city income taxes and is defined in article one hundred fifty-five of the penal law, article one hundred seventy of the penal law, article one hundred seventy-five of the penal law, article thirty-seven of the tax law or chapter forty of title eleven of the administrative code of the city of New York.New York’s Doctrine of Double JeopardyAndrew McCarthy refers to this law as a “doctrine of equitable double jeopardy.”

Willful failure to file a tax return is a misdemeanor pursuant to IRC 7203. In cases where an overt act of evasion occurred, willful failure to file may be elevated to a felony under IRC 7201. If you are charged with a criminal tax violation, the punishment can be severe and may include fines and jail time.