Ask Terry Questions PPP — Boss committing fraud?

PPP — Boss committing fraud?

By Terry Savage on July 12, 2020 | Wild Card

I work part time for a company that received the PPP. My question is this, our boss wanted us to over pay ourselves so that he wouldn’t have to pay back the loan. For example if we worked 20 hours we were to pay ourselves 23-25 hours (we would then have to pay those hours back without pay at that time) I didn’t do this and I believe the other 2 employees decided they weren’t comfortable doing this either. Is that something that is legal? He told us we were not allowed to talk to anyone about it. Anyhow, that’s all. Thank you and have a blessed day!

Terry Says

No, I don’t think it is legal — and it is wrong of him to ask you to do that. I agree that you should have declined. Perhaps he doesn’t know that he could have paid himself if he wanted to spend the money on wages! Or that he could have used a portion of the loan for rent, and still qualify for loan forgiveness. To be charitable, let’s assume the thought it was only for payroll. But you might ask him to give the employees a letter from the bank that processed his loan, confirming that it is legal! (It isn’t!)



a personal
finance question