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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
Same day
Confidential case assessments, answered by an attorney
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, you may be dealing with a civil False Claims Act inquiry. It can carry deadlines, and how you respond now may shape the entire matter.

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

Michael March

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.

Michael March
Tax Controversy · Whiteford, Taylor & Preston LLP

Michael represents individuals and organizations in civil and criminal tax matters before the IRS, the Department of Justice, and the federal courts. He has defended clients before the DOJ in federal district courts across Maryland, Virginia, Delaware, Florida, and the District of Columbia, in matters involving alleged fraud, foreign-account reporting, and tax evasion.

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 sometimes run in parallel. Which posture your matter is in is one of the first things an attorney will help you understand.

What is a civil investigative demand (CID)?

A CID is a formal government demand for documents, written answers, or testimony during a civil investigation. It carries a compliance deadline and is often the first formal step in a False Claims Act matter.

How long do I have to respond?

Your letter or civil investigative demand states a deadline. Do not miss it, and do not respond before you have spoken with counsel.

The loan was already spent or forgiven. Does that still matter?

Yes. The inquiry generally focuses on whether the loan was properly obtained and certified, not on whether the funds were spent. An improperly forgiven loan can also create tax exposure on top of any repayment.

Should we just return the money?

Not before you have counsel. Returning funds or volunteering explanations can affect your position. Let an attorney assess the situation first.

What are the penalties?

Civil False Claims Act liability can include up to three times the government's damages, plus a civil penalty of $14,308 to $28,619 for each false claim. These matters are most often resolved on more favorable terms at the earliest stage.

What does a consultation involve?

A confidential conversation about the letter you received and your options.

Where we practice

Washington
DC
1800 M Street NW, Suite 450N
Washington, DC 20036
Baltimore
MD
7 St Paul Street, Suite 1500
Baltimore, MD 21202
Columbia
MD
8830 Stanford Boulevard, Suite 400
Columbia, MD 21045
Towson
MD
Towson Commons, Suite 300
One West Pennsylvania Avenue
Towson, MD 21204
Richmond
VA
Two James Center, Suite 2001
1021 E. Cary Street
Richmond, VA 23219
Virginia Beach
VA
249 Central Park Avenue, Suite 300-91
Virginia Beach, VA 23462
Wilmington
DE
600 North King Street, Suite 300
Wilmington, DE 19801
Fairfield
NJ
375 Passaic Avenue, Suite 100
Fairfield, NJ 07004
Talk to Michael March