Do I need a Illinois PPP Loan Fraud Lawyer

Do I need a Illinois PPP Loan Fraud Lawyer

The letter came from the SBA Office of Inspector General. Or maybe it was the FBI who called your cell phone at 9 AM on a Tuesday. You’re in Illinois – Chicago, Springfield, maybe Belleville in the Metro East – and you got a PPP loan back in 2020 or 2021. Now someone with a badge wants to talk to you about it. You’re scared, and you’re wondering if you can fix this by paying the money back, or if you even need a lawyer for “just an investigation.”

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience handling federal cases nationwide. Here’s what actually happens in the next 60 to 180 days in your situation in Illinois, what choices you face, what outcomes you’re realistically looking at, and why Illinois is prosecuting government employees more aggressively than almost any other state.

Eight Agencies Are Coordinating Against You

You think it’s just one agency – the SBA, maybe, or the FBI. That’s not how federal investigations work in Illinois. The 19 United States Postal Service employees indicted in September 2023 faced an eight-agency task force: FBI, Secret Service, USPS Inspection Service, SBA-OIG, IRS-OIG, DOL-OIG, USPS-OIG, and Illinois Department of Revenue. Eight agencies sharing information, coordinating interviews, cross-referencing your statements. Talk to one, you’ve talked to all eight. Illinois has three federal districts – Northern (Chicago), Central (Springfield), Southern (East St. Louis) – and all three are actively prosecuting PPP cases in 2025, Northern District sentenced Feroz Jalal to 62 months in February and Christopher Scott to 70 months in August, Central District is prosecuting those 19 USPS workers plus investigating 275+ state employees ($7.2 million fraud), Southern District indicted three VA employees in August 2024, this isn’t winding down it’s accelerating, if you work for government you’re a bigger target, Special Agent Gregory Billingsley said it explicitly when announcing the Belleville VA worker indictments: “These indictments send a clear message that VA employees will be held accountable.” Illinois prosecutors view government employees who committed PPP fraud as worse than private citizens – you understood government programs, knew the rules, broke them anyway, that’s the prosecutorial theory, whether it’s fair is another question, whether it’s happening is not, the coordinated enforcement across all three districts shows this is a statewide priority and if you’re a federal employee or state employee or work for any public agency they’re coming after you harder than anyone else, 19 USPS workers indicted, 275+ state employees under investigation for $7.2 million, 3 VA workers charged, that’s not random that’s a prosecutorial strategy targeting people who should have known better, people who process federal paperwork every day, people who work inside the system, you’re not getting sympathy you’re getting enhanced scrutiny, and here’s what makes Illinois different from every other state prosecuting PPP fraud: the sheer scale of government employee targeting, Christopher Scott who got 70 months in August 2025 wasn’t a government employee but the Assistant U.S. Attorney made sure to emphasize his luxury spending at Tiffany and Jared and Nordstrom and Saks, prosecutors are building narratives about greed and excess, they’re documenting every dollar spent, every statement made during investigation, Jalal got 62 months plus $1.5 million restitution in February 2025 and that restitution doesn’t go away it survives bankruptcy it follows you for decades, and if you think making voluntary restitution before prosecution will help you’re wrong, prosecutors use early repayment as consciousness of guilt evidence meaning you knew you did something wrong and tried to fix it quietly, that makes it worse not better.

Talk to FBI? Pay It Back? Get a Lawyer?

No. Invoke your Fifth Amendment right. When eight agencies coordinate, anything you say gets shared across all eight. Christopher Scott’s case shows what happens when you talk during investigation – prosecutors documented his statements about luxury purchases at Tiffany, Jared, Nordstrom, Saks, Von Maur, the Assistant U.S. Attorney quoted him at sentencing: “Put simply, Scott’s crime was motivated by greed.” Those statements probably increased his sentence – he got 70 months for $550,000 while Jalal got 62 months for $1.5 million. If you make a statement to FBI that contradicts what you told SBA, that’s a separate federal crime – 18 U.S.C. § 1001.

The investigation phase lasts months or years. The Office of Executive Inspector General has been investigating Illinois state employees since 2022. USPS workers were indicted September 2023, cases still pending in 2025. Decline the interview, provide your attorney’s contact, stop talking.

Restitution doesn’t prevent prosecution. Jalal paid $1.5 million restitution PLUS 62 months. Voluntary repayment can hurt you – prosecutors use it as “consciousness of guilt” evidence.

Investigation phase is most critical, not after indictment. Rahul Shah’s case: investigation before July 2025, convicted by jury July 2025, sentencing November 13, 2025. Earlier you engage counsel, more options you have.

The Trial Penalty

Sentencing data from Illinois shows narrow range for guilty pleas: 62 to 70 months federal prison (five to six years). Jalal, age 51 from Niles, pleaded guilty to bank fraud and money laundering for $1.5 million – got 62 months February 2025. Scott, age 46 from Hazel Crest, pleaded guilty to wire fraud for $550,000 – got 70 months August 2025.

Shah went to trial July 2025. Jury convicted him on seven counts bank fraud (each up to 30 years), five counts false statements (up to 30 years each), two counts money laundering (up to 10 years each), two counts aggravated identity theft (mandatory 2 years each, consecutive). When he’s sentenced November 13, 2025, we’ll see the difference between pleading guilty at 62-70 months and forcing trial. Sentencing judge has discretion to impose up to 30 years on each of 12 major counts. That’s the trial penalty.

Illinois prosecutes small amounts too. Wilson, VA employee in Belleville, indicted for $40,000. Two other VA workers indicted for $20,000 each. Federal inmates serve approximately 85% of sentence – no parole. Restitution survives bankruptcy. If you work for government, you’re terminated. The Illinois OEIG report shows 43 state employees discharged, 53 resigned. Professional licenses impacted. Federal conviction permanent.

If You Work for Government

Nineteen USPS employees indicted. Charged with wire fraud, facing up to 30 years per count. Office of Executive Inspector General investigating since 2022 – at least 275 instances involving $7.2 million fraudulent PPP loans. Tamika Wilson, age 44, worked full-time at VA Regional Office. Charged with two counts wire fraud, two counts material false statement, two counts material false document for allegedly obtaining $40,000+.

Why Illinois prosecuting government employees so aggressively? Deterrence theory. But there’s a constitutional problem. Selective prosecution. Thousands of Illinois businesses received PPP loans. Government chose to prosecute postal workers for $20,000, state mental health workers, VA employees. Employment status shouldn’t be aggravating factor.

Spodek Law Group has handled federal cases for decades – Anna Delvey case that became Netflix series, Ghislaine Maxwell juror misconduct case. We understand how federal prosecutors think because we’ve worked with and against them for, many, many years. Shah sentencing November 13, 2025 will show trial penalty. Illinois enforcement isn’t slowing down – it’s accelerating. Jalal sentenced February, Scott August, Shah sentencing November. Nineteen USPS employees have cases pending. 275 state employees under investigation. Three VA workers face trial. Your next move: talk to someone who’s defended federal PPP cases. Call 212-300-5196.