Our colleague Jana Volante Walshak has published an article addressing the steps that businesses can take now to protect themselves against qui tam actions related to the CARES Act Paycheck Protection Program. Many organizations may have thought the “hard part” was over when they received loans under the Paycheck Protection Program. In reality, the hard part is only beginning for loan recipients as they attempt to comply with the program’s constantly changing regulatory scheme. The uncertain nature of the rules and regulations governing the Paycheck Protection Program makes it possible for the leaders of an organization to mistakenly believe it is in full compliance when it is not. Failure to comply with the rules and regulations governing the program could render the certifications made to obtain the funds false, potentially resulting in severe consequences – liability under the False Claims Act. However, there are certain steps organizations can take now to protect themselves.
You can read Jana’s article here.
Please check out Fox Rothschild’s coronavirus resource page, which is available here.
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