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An Ounce of Prevention: Preparing for CARES Act Fraud Investigations
The $2 trillion economic relief package from Congress' Coronavirus Aid, Relief, and Economic Security (CARES) Act has been steadily infused into our economy since March. One well-known example of these stimulus funds is the Small Business Administration's (SBA) Paycheck Protection Program (PPP), through which over 4.9 million businesses received $521 billion in forgivable loans to help maintain payroll, rehire employees and cover rent and utilities. Compared to other government-backed loan programs, the speed with which lenders processed and approved PPP applications was unprecedented.
Early on, the government made clear its commitment to rooting out fraudsters attempting to pilfer PPP funds. In late April, Treasury Secretary Steven Mnuchin said the SBA would conduct a full audit of PPP loans over $2 million prior to forgiveness and that borrowers may face criminal liability if they make false loan certifications. Based on loan data released by the SBA and Treasury Department (as of June 30), a modest number of the 4.9 million PPP loans fall above the $2 million mark — approximately 294,000, or 0.6%. But the value of these loans is significant — over $10 billion — and underscores the importance of government monitoring and enforcement.
The government appears to be fulfilling its commitment to rooting out PPP fraud, even when the amount at issue falls below the $2 million threshold. On July 13, the Department of Justice announced charges against the owner of a Washington, DC-based residential construction contracting firm for allegedly submitting a fraudulent tax return and bogus Social Security numbers for fake independent contractors when applying for a $400,000 PPP loan. Similar cases have been brought against business owners in other parts of the country, including Georgia ($2 million loan), Florida ($22,000 loan) and Texas ($1.1 million loan). Notably, the SBA's Office of Inspector General worked closely with DOJ on these prosecutions, showing close coordination between the agencies for PPP-related fraud.
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.