Do I need a PPP loan fraud Lawyer
You received a PPP loan in 2020 or 2021. Now it’s 2025 and you just got a letter from the SBA Office of Inspector General requesting documentation. Or FBI agents contacted you about your loan. Thanks for visiting Spodek Law Group – a second generation law firm with over 50 years of combined experience. Our managing partner, Todd Spodek, is a seasoned federal defense attorney who has many, many, years of experience handling PPP fraud investigations and federal prosecutions. Todd has been featured on major news outlets like NY Post, Newsweek, and Fox 5, and represented high-profile clients including Anna Delvey and handled juror misconduct allegations in the Ghislaine Maxwell trial. The answer: yes, immediately.
What First Contact Means
That letter isn’t routine. By the time they contact you, they’ve spent months investigating in silence. Cross-referenced your application against IRS payroll returns, state unemployment records, bank statements. Found discrepancies. They already have evidence.
Different contact types signal different things. SBA OIG letter requesting documentation – building a case, want you to provide more evidence against yourself. DOJ target letter – criminal investigation, prosecutors considering charges. FBI agents showing up – interrogation disguised as “friendly conversation.” According to DOJ’s COVID-19 fraud enforcement initiative, over 3,000 individuals charged with pandemic-related fraud. Investigations continue through 2025.
Business owners make the same mistake. They think cooperation without a lawyer shows nothing to hide. One owner received SBA letter asking for payroll documentation. Thought it was routine. Provided bank statements, written explanation. Six months later – Exhibit A in his federal indictment.
Before Charges vs After
You’re thinking: “I’ll talk to agents and explain. If they charge me, then I’ll get a lawyer.” Single biggest mistake PPP loan recipients make. Most valuable time for a lawyer is before charges. After indictment, options narrow: plead guilty or trial. According to U.S. Sentencing Commission data, 97% of federal prosecutions result in convictions. Once indicted, prosecutors have no incentive to negotiate.
Before charges, lawyer has options that disappear after. Federal defense attorney communicates with prosecutors, finds out evidence they have before you make statements. Negotiates outcomes avoiding criminal charges entirely: civil settlement where you repay loan plus penalties but avoid criminal record, deferred prosecution agreements, plea to reduced charges with cooperation credit. Most importantly, convinces prosecutors not to file charges at all.
Compare cost. Hiring federal criminal defense lawyer immediately costs $15,000-$30,000. Waiting until charged costs $100,000+ for trial defense, plus restitution, fines up to $250,000 or more under 18 U.S.C. § 1344, federal prison time. People go to prison for $20,000 PPP fraud.
Federal agents contact you saying “We just want to clear this up” or “Getting a lawyer makes you look guilty.” Stop. Talking to federal agents without lawyer is how you get charged with additional federal crimes on top of PPP fraud allegation. Even if your application was legitimate, you can get charged with false statements under 18 U.S.C. § 1001 if anything you say contains minor inconsistencies. Separate charge carrying 5 years. You don’t know what evidence government already has. Agents are trained interrogators building criminal case.
Business owner’s application was legitimate – qualified for $75,000 based on actual payroll. During FBI interview without lawyer, agent asked employee count. Said “around 15 employees” because unsure about part-time workers. Application listed 18. That discrepancy became separate charge. Minor inconsistencies under pressure became new federal crimes carrying 5 years each.
Your Fifth Amendment right against self-incrimination and Sixth Amendment right to counsel exist for this. Not required to help government build case against you. When you have lawyer, cooperation happens through attorney.
Timeline with lawyer from day one: Week 1, attorney contacts prosecutors. Months 1-3, lawyer negotiates. outcome – civil settlement, return loan but avoid criminal charges. Timeline without: You talk to agents, provide statements. Months 2-4, government uses statements as evidence. 97% conviction rate. Fraud involving less than $150,000 but more than $95,000 results in 21-27 months federal prison. According to federal sentencing guidelines, amounts over $250,000 result in 51-63 months or higher. Congress extended statute of limitations to 10 years. SBA OIG investigations continuing for years.
Unlike other law firms who are more focused on their relationship with prosecutors and judges, Spodek Law Group owes loyalty to only you. Getting you the possible outcome in your PPP fraud investigation. Every single client who works with us is serious about their future. If we’re choosing to work with you, it’s because we think we can make a positive impact on your case.
Don’t talk to agents without lawyer. Don’t provide documents without legal advice. Call us. 212-300-5196.