FEDERAL CRIMINAL LAWYERS

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# Do I Need a Florida PPP Loan Fraud Lawyer?

You received a letter from the SBA Inspector General, the FBI, or one of Florida’s three U.S. Attorney’s Offices—the Northern District in Tallahassee, the Middle District in Tampa, or the Southern District in Miami. They’re asking questions about your PPP loan that you thought was forgiven two years ago. Maybe they want to know if your employees were real, whether your payroll numbers were accurate, or whether you spent the funds on legitimate business expenses versus personal purchases.

You’re in Florida—Miami, Tampa, Orlando, Jacksonville, Fort Lauderdale, or another city across the state, and you need to understand whether federal prosecutors in Florida are actually filing criminal charges over PPP applications filed during a pandemic emergency, what kind of prison sentences Florida defendants are receiving, and whether hiring a lawyer who handles federal fraud cases nationwide makes a meaningful difference when federal prosecutors can send you to federal prison for what you believed was a government-backed forgivable loan. Florida presents a particularly complex prosecutorial landscape because it’s divided into three separate federal districts, each with its own U.S. Attorney’s Office, and Miami has been identified by federal investigators as a national “hub” of PPP fraud, meaning enforcement in South Florida has been especially aggressive. The Middle District of Florida alone has charged 109 defendants since March 2020 seeking to defraud over $96 million, with 74 defendants already convicted and 35 prosecutions still pending as of 2025. To understand the stakes, consider Crystal Denean Harvell, a 37-year-old Jacksonville woman who submitted a PPP application for $20,415 in 2021, claiming to operate a business that didn’t exist—she fabricated tax documents, spent the funds on personal expenses, and then filed a fraudulent forgiveness application, and on March 11, 2025, a federal judge in the Middle District sentenced her to 24 months in federal prison and ordered her to pay $131,782.63 in restitution, proving that even relatively small loans create serious federal prosecution risk in Florida.

The constitutional questions here are profound. Fifth Amendment protection against self-incrimination means you have an absolute right to remain silent when FBI agents come asking questions. Sixth Amendment guarantees you effective counsel—which requires federal expertise, not just geographic proximity to a Florida courthouse. Due process principles raise serious concerns when the government provided contradictory SBA guidance during a pandemic emergency and now prosecutes based on retroactive interpretation of vague eligibility rules. And selective prosecution questions loom large: the Middle District has charged 109 defendants, but tens of thousands of Florida businesses received PPP loans. Why were these particular defendants selected for criminal prosecution while others who may have made similar mistakes face no consequences?

## What Actually Happens When Your PPP Loan Gets Flagged in Florida

The SBA Inspector General flags loans through automated fraud detection systems that had identified over 50,000 potentially fraudulent loans nationally by early 2021, and once your loan is flagged, FBI offices in each of Florida’s federal districts—Miami, Tampa, Jacksonville, Tallahassee, and Pensacola—begin investigating along with IRS-Criminal Investigation agents who focus on tax-related aspects of fraud schemes. The investigation timeline typically runs 6 to 18 months before the U.S. Attorney’s Office in your district decides whether to file criminal charges, and this is the critical period when early intervention by experienced federal defense counsel can make the difference between negotiating a resolution without charges or facing a federal indictment with a 95-97% conviction rate. Florida’s three separate U.S. Attorney’s Offices—Northern, Middle, and Southern Districts—can take different prosecutorial approaches to similar fact patterns, meaning the strategy that works with prosecutors in Tampa might differ from what’s effective in Miami or Tallahassee.

The window closes fast. Once you’re indicted, negotiation becomes nearly impossible.

Consider the case of Wally Dorlus, a 41-year-old tax preparer in Margate (Southern District of Florida) who filed approximately 170 fraudulent PPP applications seeking over $28 million, with about 33 applications funded for a total of $5.5 million. On January 13, 2023, a federal judge sentenced Dorlus to 48 months in federal prison and ordered $5.6 million in restitution. The Dorlus prosecution illustrates a pattern federal prosecutors in Florida have particularly targeted: tax preparers and other professionals who exploited their position of trust to file multiple fraudulent applications. Marcgenson Marc of Coconut Creek and Edward Moise of Coral Springs, who participated in the same conspiracy by recruiting applicants and facilitating kickback payments, received 15 and 18 months respectively, with restitution orders of $886,809 and approximately $860,000—these sentences show that even participants with lesser roles in fraud schemes face substantial federal prison time in Florida courts.

The constitutional problem with this post-hoc enforcement approach is that the federal government promised “forgiveness” for PPP loans during a pandemic emergency when the economy was shut down and businesses were desperate to survive, SBA guidance was often unclear or contradictory about eligibility requirements and documentation standards, and now prosecutors are filing criminal charges based on retroactive interpretations of rules that many business owners genuinely didn’t understand. The due process question is whether defendants had fair notice that their conduct was criminal when the government was simultaneously encouraging rapid loan disbursement with minimal verification. Yet federal courts have largely rejected these defenses, which is why the quality of your legal representation—specifically, whether your attorney understands federal fraud prosecutions, sentencing guidelines, and how to negotiate with U.S. Attorneys who have near-unlimited resources—matters more than whether your lawyer has an office in Florida. If you received a letter from federal investigators, the investigation is already underway, and speaking to FBI agents without counsel present is the single most dangerous mistake you can make because anything you say will be used to build the criminal case against you, and any misstatements during the interview—even innocent mistakes about dates or amounts—create a separate federal charge under 18 U.S.C. § 1001 (false statements to federal agents), and the window to negotiate with prosecutors closes substantially once an indictment is filed, which is why consulting with a federal defense attorney who has experience with SBA fraud cases during the investigation phase is critical.

## Florida’s Actual PPP Fraud Prosecutions—Who Goes to Prison and For How Long

Florida federal courts are actively sentencing PPP fraud defendants to substantial prison terms across all loan amounts, from small individual applications to massive multi-million dollar conspiracies. Crystal Denean Harvell’s March 11, 2025 sentencing in Jacksonville demonstrates that even a $20,415 loan triggers serious federal prosecution: she submitted a false PPP application in 2021 claiming to operate a nonexistent business, included fabricated tax documents, spent the funds on personal expenses rather than payroll, and then submitted a fraudulent forgiveness application claiming false payroll expenditures that resulted in full SBA forgiveness—the federal judge imposed 24 months in federal prison, $131,782.63 in restitution, and $20,415 in forfeiture. The Harvell case destroys any notion that there’s a “safe” loan amount below which Florida prosecutors won’t pursue criminal charges.

Marcgenson Marc of Coconut Creek received 15 months and Edward Moise of Coral Springs received 18 months for their participation in the Dorlus conspiracy, with restitution orders of $886,809 and approximately $860,000 respectively—both were convicted in January 2023 for recruiting applicants and facilitating kickback payments ranging from 12.5% to 25% of loan proceeds. Roberto Geronimo, a 40-year-old Miami Gardens resident, received 70 months in federal prison (concurrent with drug charges) and was ordered to pay approximately $262,000 in restitution plus over $86,000 in forfeiture for obtaining a fraudulent PPP loan of approximately $250,000 for a liquor store despite being under federal indictment for drug charges at the time he applied—the PPP program explicitly prohibited loans to applicants with pending criminal charges, and Geronimo’s disregard for this clear prohibition resulted in a substantially enhanced sentence. The most significant pending case in Florida involves Lazaro Verdecia Hernandez, 37, and Yadier Rodriguez Arteaga, 41, both of Miami, who were convicted by a jury on November 8, 2024 for a scheme involving over $14.5 million disbursed through more than 63 fraudulent PPP applications—working with co-conspirator Heidi Cid, they falsified employee numbers and included forged documents to make applicants appear eligible, then withdrew and distributed the funds among the conspirators, and both were convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and money laundering charges, with Verdecia also convicted of substantive wire fraud, facing up to 20 years on the conspiracy and wire fraud counts and up to 10 years on money laundering counts, with sentencing scheduled for February 3, 2025, demonstrating that Florida’s federal prosecutors are aggressively pursuing PPP fraud cases well into 2025, nearly five years after the pandemic emergency began.

The sentencing pattern in Florida cases from 2023-2025 shows a range of 15 months (Marc) to 70 months (Geronimo), with conspiracy organizers like Dorlus receiving enhanced 48-month sentences, and prior criminal history matters significantly—Geronimo’s concurrent drug charges contributed to his 70-month sentence—while restitution is mandatory in every case, ranging from Harvell’s $131,782.63 to Dorlus’s $5.6 million, and national sentencing data shows that PPP fraud sentences have increased by over 40% in 2024-2025 compared to 2021-2022, reflecting federal judges’ growing frustration with fraud schemes that exploited a pandemic emergency program. Florida defendants face multiple federal charges: wire fraud under 18 U.S.C. § 1343 carries up to 20 years per count, bank fraud under 18 U.S.C. § 1344 carries up to 30 years and a $1 million fine, conspiracy to commit wire fraud carries up to 20 years, money laundering (as charged against Verdecia and Arteaga) carries up to 10 years, and false statements to the SBA under 18 U.S.C. § 1014 carries up to 30 years and a $1 million fine—these are the statutory maximums, but actual sentences are determined by the U.S. Sentencing Guidelines based on the fraud amount, the defendant’s role in the offense, criminal history, and other factors, and beyond criminal penalties, defendants face civil liability under the False Claims Act, which imposes penalties of $27,894 per false claim (the 2025 inflation-adjusted amount) plus treble damages equal to three times the fraud amount, so a defendant who obtained a $500,000 loan through three false statements faces $1.5 million in treble damages plus $83,682 in civil penalties for a total civil liability of approximately $1.58 million, and these civil cases are often pursued by the government even after criminal prosecution concludes.

## Do I Need a Florida Lawyer or Can a Nationwide Federal Attorney Handle My Case?

Federal criminal procedure is uniform across all federal districts—the Federal Rules of Criminal Procedure that apply in Tampa, Miami, and Jacksonville are identical to those in New York, Los Angeles, and Chicago, and the U.S. Sentencing Guidelines that determine your prison sentence apply the same calculations in Florida’s Middle District as they do in the Southern District of New York or the Northern District of Illinois, while a lawyer admitted to practice in federal court can seek admission to any federal district, meaning the geographic location of your attorney’s office has no bearing on their ability to represent you effectively in a Florida federal courthouse, because what matters is federal expertise—understanding how federal fraud prosecutions work, how to negotiate with Assistant U.S. Attorneys, how the Sentencing Guidelines apply to your specific fact pattern, and how to identify weaknesses in the government’s evidence before an indictment is filed. Florida’s complexity as a three-district state actually makes nationwide federal experience more valuable, not less, since the Northern District, headquartered in Tallahassee, covers 23 counties with divisions in Pensacola, Panama City, Gainesville, and Marianna, while the Middle District, headquartered in Tampa, covers 35 counties with divisions in Tampa, Orlando, Jacksonville, Fort Myers, and Ocala—this district has been the most aggressive, charging 109 defendants in PPP fraud cases—and the Southern District, headquartered in Miami, covers 9 counties with divisions in Miami, Fort Lauderdale, and West Palm Beach, handling the largest fraud amounts, including the $28 million Dorlus conspiracy and the $14.5 million Verdecia-Arteaga scheme, and each district has a different U.S. Attorney appointed by the President, meaning prosecutorial priorities can vary significantly even within the same state. Nationwide federal practice provides crucial leverage because experienced federal defense attorneys have worked with U.S. Attorney’s Offices across the country and understand comparative prosecutorial patterns—how Tampa prosecutors approach plea negotiations differently from Miami prosecutors, or how Florida districts compare to offices in Boston, Atlanta, or Chicago in terms of willingness to negotiate, likelihood of proceeding to trial, and sentencing recommendations, and this comparison data is invaluable when crafting a defense strategy and negotiating a resolution.

Spodek Law Group exemplifies this approach: established in 1976 as a second-generation criminal defense firm with over 50 years of combined federal defense experience, the firm’s managing partner Todd Spodek has handled hundreds of federal fraud cases nationwide. His representation of Anna Delvey (featured in the Netflix series “Inventing Anna”) and his success securing a 6-month sentence for a client facing decades in prison for a $12 million Ponzi scheme demonstrate the level of federal expertise required for complex fraud cases. The firm’s team includes former federal prosecutors who understand government investigation tactics and case-building strategies from the inside—this insight allows them to identify weaknesses in federal evidence early, often during the investigation phase before charges are filed. Spodek Law Group represents clients in all three of Florida’s federal districts (Northern, Middle, and Southern) as well as federal courts nationwide.

Remote representation is entirely practical in federal cases because strategic court appearances—arraignment, hearings, trial—can be scheduled in advance while day-to-day communication occurs remotely through phone, video, and secure messaging, and the federal court’s electronic filing system (PACER/CM-ECF) is identical in every district, with federal defense attorneys accustomed to handling cases across multiple time zones and jurisdictions, so what matters for effective representation isn’t whether your lawyer’s office is in downtown Miami or Fort Lauderdale—it’s whether your lawyer understands the federal system, has relationships with Assistant U.S. Attorneys in your district, and has successfully defended clients in similar cases. The Sixth Amendment standard for effective assistance of counsel requires an attorney who understands federal fraud prosecutions, federal sentencing guidelines, and how to negotiate with U.S. Attorneys who have nearly unlimited resources, and a Florida-only criminal defense practice that primarily handles state court cases may lack the specific federal expertise required for a complex SBA fraud prosecution, because the constitutional right to counsel means the right to effective counsel, and “effective” in this context means experience with the federal system, not geographic proximity.

## The Questions Florida Defendants Actually Ask (And What the Answers Mean for Your Case)

### Should I speak to the FBI agents investigating my PPP loan?

No—invoke your Fifth Amendment right to remain silent, because anything you say to federal agents will be used to build the criminal case against you, and misstatements to agents—even innocent mistakes about dates, amounts, or other details—create a separate federal charge under 18 U.S.C. § 1001 for false statements to federal agents, which carries up to five years in prison, and FBI agents are trained to conduct interviews in ways that elicit incriminating statements, often already knowing the answers to the questions they’re asking—they’re testing whether you’ll lie or admit to conduct they consider criminal. Your constitutional right to remain silent exists precisely for this situation, and the better strategy is to politely decline the interview, provide the agents with your attorney’s contact information, and consult with a federal defense attorney before any communication with investigators, because many defendants believe that cooperation early in an investigation will convince prosecutors not to file charges, but in PPP fraud cases, early statements to agents typically become the foundation of the criminal case, making prosecution easier rather than preventing it, and federal prosecutors have unlimited resources to build cases against you, so any statement you make—even one you believe is exculpatory—will be analyzed, cross-referenced with other evidence, and used to establish elements of wire fraud, bank fraud, or false statements charges.

### Will making voluntary restitution prevent prosecution in Florida?

No—Crystal Denean Harvell’s case proves repaying the loan doesn’t prevent criminal charges.

### How many PPP fraud defendants have been charged in Florida?

The Middle District of Florida alone has charged 109 defendants since March 2020, with 74 already convicted and 35 prosecutions still pending as of 2025, while the Southern District has handled multiple high-profile cases including the $28 million Dorlus conspiracy and the $14.5 million Verdecia-Arteaga scheme, and the Northern District has active prosecutions but publishes less statistical data. Miami has been specifically identified by federal investigators as a national “hub” of PPP fraud, meaning enforcement in South Florida has been particularly aggressive, and Florida ranks among the most aggressive states for PPP fraud prosecution nationally, so if you’re under investigation, your case is part of a broader enforcement pattern that shows no signs of slowing down even in 2025.

### How small does my loan need to be to avoid prosecution in Florida?

There is no safe threshold—prosecutors charge loans as small as $20,415 (Harvell case).

### Can I go to jail for PPP loan fraud in Florida?

Yes—Florida federal courts are actively sentencing defendants to federal prison, with recent sentences including 15 months for Marc, 18 months for Moise, 24 months for Harvell, 48 months for Dorlus, and 70 months for Geronimo, and the federal conviction rate is 95-97% nationwide, meaning that once charges are filed, the likelihood of acquittal is extremely low. The Middle District of Florida’s statistics show 74 convictions out of 109 defendants charged, with 35 cases still pending—this means virtually every defendant charged in that district has been convicted, and probation is rare in PPP fraud cases because the standard sentence involves federal prison time plus restitution, and federal prosecutors view PPP fraud as a theft from a pandemic emergency program, making judges particularly unforgiving when imposing sentences, which is why the 40% increase in PPP fraud sentences from 2021-2022 to 2024-2025 reflects growing judicial frustration with defendants who exploited a crisis.

### What happens if I’m convicted in Florida?

You’ll be sentenced to federal prison (not Florida state prison), which means serving time in a Federal Bureau of Prisons facility that could be located anywhere in the country—sentences in recent Florida cases range from 15 to 70+ months based on fraud amount, your role in the offense, and criminal history, and you’ll be ordered to pay full restitution, with Harvell ordered to pay $131,782.63, Dorlus $5.6 million, and Verdecia-Arteaga facing restitution in the range of $14.5 million, followed by a period of supervised release (typically three years) with conditions similar to probation. A federal conviction is a permanent record that impacts employment, professional licenses, and numerous other aspects of life, and the federal system has no parole, meaning you’ll serve approximately 85% of your sentence before release, so a 24-month sentence means roughly 20 months in actual custody, while a 70-month sentence means nearly six years in federal prison, and restitution obligations survive bankruptcy, meaning you’ll be paying back the fraud amount for decades even after completing your prison sentence.

### Do I need a lawyer if I’m just under investigation, not charged yet?

Yes—the investigation phase is when defense strategy matters most, because once an indictment is filed, the negotiation window narrows significantly as prosecutors have already committed resources to building the case and are far less likely to dismiss charges, while early intervention during the investigation can shape whether charges are filed at all. Former federal prosecutors on a defense team understand what evidence the government needs to proceed with charges and can identify weaknesses in the investigation before prosecutors make charging decisions, and experienced federal defense counsel can negotiate directly with the U.S. Attorney’s Office before charges are filed, potentially resolving the matter through civil penalties or restitution without criminal prosecution, because your constitutional rights—Fifth Amendment right to remain silent and Sixth Amendment right to counsel—apply during the investigation phase, not just after arrest, and federal prosecutors make charging decisions based on the strength of evidence they can gather during investigation, so having an attorney intervene early to limit that evidence, invoke constitutional protections, and negotiate alternative resolutions provides the opportunity to avoid federal charges entirely.

## What You Should Do in the Next 30 Days If Florida Federal Prosecutors Are Investigating Your PPP Loan

In the first week, take three immediate steps: do not speak to federal agents under any circumstances—invoke your Fifth Amendment right to remain silent and provide them with your attorney’s contact information, do not make statements to anyone about the loan, including banks, the SBA, or business partners, because those statements can be discovered by prosecutors and used against you, and do not destroy documents, because obstruction of justice is a separate federal crime that carries additional prison time, and consult with a federal defense attorney immediately, because investigation timelines typically run 6-18 months before charges are filed, and early intervention provides the maximum opportunity to shape the outcome. In weeks two through four, focus on strategic positioning by working with your attorney to assess which of Florida’s three federal districts is investigating your case—Northern District based in Tallahassee, Middle District based in Tampa, or Southern District based in Miami—because prosecutorial patterns differ across districts, and understand the specific approach of prosecutors in your district since the Middle District has been most aggressive with 109 defendants charged, while the Southern District has pursued the largest fraud amounts, and evaluate what evidence the government likely has, including your PPP application documents, bank records showing how funds were spent, tax returns that may contradict application representations, and emails or text messages discussing the loan, and identify potential defenses early, such as reliance on an accountant or tax preparer who completed the application, ambiguity in SBA guidance about eligibility or documentation requirements, or lack of criminal intent if you genuinely believed your application was accurate. The constitutional defense strategy focuses on several key arguments: Fifth Amendment rights mean you cannot be compelled to provide evidence against yourself during the investigation, Sixth Amendment rights guarantee effective counsel, which requires federal expertise rather than just a lawyer licensed in Florida, due process principles raise serious questions about whether the government’s contradictory SBA guidance during the pandemic provided fair notice that certain conduct was criminal, and selective prosecution questions address why your case was chosen for criminal charges when the Middle District charged 109 defendants but tens of thousands of Florida businesses received PPP loans—what criteria determine who faces prison and who faces no consequences? Consider long-term implications beyond the immediate 30 days: the statute of limitations for wire fraud and bank fraud is 10 years, meaning prosecutors can file charges as late as 2030-2031 for loans obtained in 2020-2021, and the February 3, 2025 sentencing of Verdecia and Arteaga demonstrates that Florida’s federal prosecutors are actively pursuing PPP fraud cases well into 2025 with no indication of slowing enforcement, while early negotiation with the U.S. Attorney’s Office is possible with experienced federal counsel who has relationships with prosecutors in your district, and the strategic decision between cooperation, proceeding to trial, or negotiating a plea resolution requires deep understanding of federal sentencing, the strength of the government’s evidence, and the likely outcome in your specific district.

Spodek Law Group’s approach emphasizes early intervention because former prosecutors on the defense team understand the government’s case-building timeline and can identify weaknesses in federal evidence before an indictment is filed.

## The Real Question: Not Whether You Need a Lawyer, But What Kind

Florida’s three federal districts—Northern District based in Tallahassee, Middle District based in Tampa, Southern District based in Miami—create a complex prosecutorial landscape where different U.S. Attorney’s Offices can take vastly different approaches to similar cases, and the Middle District alone has charged 109 defendants seeking to defraud over $96 million, with 74 already convicted and 35 prosecutions pending, while sentences in recent Florida cases range from 15 to 70 months in federal prison, and prosecutors are filing charges for loans as small as $20,415, as Crystal Denean Harvell’s March 2025 sentencing in Jacksonville proved, and the February 3, 2025 sentencing of Lazaro Verdecia Hernandez and Yadier Rodriguez Arteaga in Miami for a $14.5 million fraud scheme demonstrates that Florida’s federal enforcement shows no signs of slowing even five years after the pandemic emergency began. Federal criminal procedure is uniform across all districts—the same rules, the same Sentencing Guidelines, the same constitutional protections apply whether you’re in Tampa, Miami, or any other federal courthouse in the country—and what matters for effective representation isn’t geographic proximity to the courthouse but federal expertise: understanding how federal prosecutors build cases, how federal sentencing works, how to negotiate with U.S. Attorneys who have near-unlimited resources, and how to defend complex fraud cases that other lawyers consider impossible to win. Nationwide federal practice provides crucial comparison data about how different U.S. Attorney’s Offices approach plea negotiations, what evidence is sufficient to proceed to trial, and what sentencing recommendations are reasonable given the facts, while former federal prosecutors on your defense team understand government tactics from the inside and can identify weaknesses in the investigation that prosecutors might overlook, and constitutional rights—Fifth Amendment protection against self-incrimination, Sixth Amendment right to effective counsel—require attorneys with deep federal experience, not just familiarity with Florida courts. Florida PPP fraud defendants face federal prison sentences ranging from 15 to 70+ months based on the fraud amount and their role in the offense, full restitution orders that can reach millions of dollars (Harvell: $131,782; Dorlus: $5.6 million; Verdecia-Arteaga: $14.5 million), permanent federal convictions that impact employment and professional licensing, civil penalties under the False Claims Act of $27,894 per false claim plus treble damages equaling three times the fraud amount, and a 10-year statute of limitations that means prosecution is possible through 2030-2031 for loans obtained during 2020-2021. You can wait until an indictment is filed—when the negotiation window has largely closed and prosecutors have already committed to pursuing prison time—or you can invoke your Sixth Amendment right to counsel now, during the investigation phase when strategic intervention matters most, because the federal government has three separate U.S. Attorney’s Offices in Florida, 109 defendants already charged in the Middle District alone, and a 95-97% conviction rate nationwide once charges are filed, and the question isn’t whether you need a lawyer—the question is whether you need a lawyer who understands how federal prosecutors think, how federal sentencing works, and how to defend cases that others thought couldn’t be won.

If you’re under investigation or facing charges for PPP loan fraud in Florida, contact Spodek Law Group for a confidential consultation.