Tax Defense Call (443) 447-5087
Nonprofit PPP / False Claims Act Defense

Did your nonprofit receive a federal letter about its PPP loan?

If the Department of Justice or the SBA is questioning your organization's PPP eligibility or forgiveness under the False Claims Act, talk with a defense attorney before you respond.

A full-service firm established in 1933. Tax controversy and white-collar attorneys serving organizations across the East Coast.

$14,308–$28,619
Civil penalty the government can seek for each false claim
Treble damages, on top of the per-claim penalties
Civil
Not criminal — and most often resolved at the earliest stage
1933
The year Whiteford was established

Does your letter say any of this?

These letters are recognizable. Look for:

If your letter uses this language, it is a civil False Claims Act inquiry. It carries deadlines, and how you respond now shapes the entire matter.

What is at stake

Civil False Claims Act exposure is serious. A finding of liability can mean up to three times the government's damages, plus a civil penalty of $14,308 to $28,619 for each false claim, and an improperly forgiven loan can create tax exposure on top of any repayment.

The better news: these matters are civil, not criminal, and the earliest stage is where they are most often resolved on favorable terms.

Do not respond on your own

Do not return funds, explain your position, or answer a civil investigative demand before speaking with counsel. Early statements shape everything that follows.

An experienced attorney, working alongside your accountant, can assess your exposure, preserve your defenses, and manage the communication with the government.

How we help nonprofits

Respond on deadline

We answer DOJ letters and civil investigative demands within the deadline they set.

Reconstruct eligibility

Your 501(c) type, first draw versus second draw, and the lobbying and size limits that applied.

Build your defense

Including good-faith reliance, materiality, and any applicable safe harbor.

Resolve and coordinate

Negotiate a resolution and coordinate any related tax exposure.

Why Whiteford

Whiteford is a full-service firm whose tax controversy and white-collar attorneys represent organizations, including nonprofits, in SBA, IRS, and Department of Justice matters across the East Coast. We handle the government while you keep your organization running.

How it works

1

Consultation

Tell us about the letter you received.

2

Assessment

We review the loan, the certifications, and the eligibility rules that applied to your organization.

3

Response

We manage the communication with the government and pursue a resolution.

A few quick answers

Is this criminal?

Usually civil, though civil and criminal reviews can run in parallel.

How long do I have?

Your letter or civil investigative demand states a deadline. Do not miss it.

What does a consultation involve?

A confidential conversation about your letter and your options.

Where we practice

Washington
DC
Baltimore
MD
Columbia
MD
Towson
MD
Richmond
VA
Virginia Beach
VA
Wilmington
DE