Is There a Deadline for PPP Fraud Prosecutions?
So your probably wondering if there’s a point where the government has to STOP investigating and prosecuting PPP fraud, and the answer is yes—the deadline is determined by the 10-year statute of limitations that runs from when the offense occurred. For loans obtained in 2020, that means prosecutions can continue until 2030. For loans in early 2021 (including PPP Second Draw), the deadline extends to 2031. But there’s more to it than just the raw statute—prosecutors have shown no signs of slowing down, the Department of Justice has requested MORE funding and resources for pandemic fraud enforcement, and the cases being charged NOW are often more serious than the early wave of prosecutions.
We represent clients in PPP fraud investigations and prosecutions throughout California and the federal system, and when defendants ask “when will this be over,” the answer is sobering: not for years. The COVID-19 Fraud Enforcement Task Force released a 2024 report showing they’ve charged over 3,500 defendants and recovered more than $1.4 billion in fraudulently obtained funds—and they’re asking Congress for ADDITIONAL resources to continue enforcement through the full 10-year period. This isn’t winding down; if anything, it’s ramping up for the larger, more complex cases that take years to investigate.
The practical deadline isn’t just the statute of limitations—it’s when prosecutors DECIDE to stop prioritizing these cases. That decision depends on political pressure, budget constraints, the availability of investigative resources, and whether new administrations make pandemic fraud a priority. Right now, all signs point to continued aggressive enforcement through at least 2028-2030, with the possibility it extends even longer for cases involving particularly large amounts or egregious conduct. If you committed PPP fraud in 2020 and your thinking “surely there done investigating by now,” the evidence suggests otherwise.
When Is the Hard Deadline for Prosecutions?
The absolute deadline is the expiration of the 10-year statute of limitations, measured from when the offense was committed. Under the laws passed in August 2022 (the PPP and Bank Fraud Enforcement Harmonization Act and the COVID-19 EIDL Fraud Statute of Limitations Act), prosecutors have 10 years from the date of the fraudulent conduct to return an indictment. If the indictment isn’t returned before that deadline, the case is barred and cannot be prosecuted.
For PPP loans, the relevant dates are:
- First round PPP (April-August 2020): Statute expires 2030-2031
- Second round PPP/Second Draw (December 2020-May 2021): Statute expires 2030-2032
- Forgiveness fraud (applications submitted 2020-2022): Statute expires 2030-2032 depending on submission date
The key date is when the OFFENSE occurred, not when it was discovered. If you submitted a fraudulent PPP application on June 15, 2020, prosecutors have until June 15, 2030, to indict you, regardless of when they discovered the fraud. If you submitted a fraudulent forgiveness application on March 1, 2021, that’s a separate offense with a statute running to March 1, 2031. Each fraudulent act has its own 10-year clock.
The statute requires that an INDICTMENT be returned before the deadline, not that the case be completed. So prosecutors can obtain an indictment in May 2030 for May 2020 fraud (literally days before the statute expires), then spend the next 2-3 years litigating the case, going to trial, and sentencing. Once the indictment is timely filed, the statute of limitations is satisfied and the case can proceed indefinitely. We’re likely to see a surge of indictments in 2029-2030 as prosecutors rush to charge cases before the deadlines for 2020 conduct.
Are Prosecutors Actually Planning to Continue Through 2030?
Yes, absolutely. The DOJ’s COVID-19 Fraud Enforcement Task Force has made clear that pandemic fraud enforcement will continue for years. The 2024 Task Force report explicitly requested additional funding and legislative support to pursue cases through the full statute of limitations period. The report noted that while significant progress has been made (3,500+ defendants charged, $1.4 billion recovered), the scale of fraud was so massive—estimates range from $64 billion to over $200 billion stolen—that investigations will continue well into the 2030s.
The SBA Office of Inspector General estimated in 2023 that $64 billion in PPP funds went to potentially fraudulent actors. That’s BILLION with a B. Even with aggressive enforcement, federal investigators have only scratched the surface. The Task Force has prioritized cases based on dollar amount and egregiousness, focusing first on the most obvious frauds (fake businesses, stolen identities, luxury spending). Now there working through mid-tier cases—businesses that existed but inflated payroll, applications with mixed legitimate and false information, schemes involving loan preparers who helped multiple clients file fraudulent applications.
The request for additional funding is telling. If the DOJ expected enforcement to wind down soon, they wouldn’t be asking Congress for MORE resources. They’d be reallocating investigators to other priorities. Instead, there asking for sustained or increased funding to continue pandemic fraud prosecutions, which signals they expect this to be a major initiative for years to come. Whether Congress grants that funding (particularly with administration changes and budget pressures) remains to be seen, but the DOJ’s intent is clear.
Individual U.S. Attorney’s Offices have also signaled continued commitment. Districts that have prosecuted significant numbers of PPP fraud cases—Southern District of Florida, Central District of California, Northern District of Texas, Eastern District of New York—continue to announce new indictments regularly. These aren’t old cases that were charged years ago; these are NEW charges in 2024-2025 for conduct from 2020-2021. The pace hasn’t slowed in many districts; if anything, it’s increased as investigators finish working through the backlog of suspicious applications.
Will a New Administration Change Enforcement Priorities?
Presidential administrations change, and with them come shifts in prosecutorial priorities. The Biden Administration made pandemic fraud a priority through the COVID-19 Fraud Enforcement Task Force. The Trump Administration (taking office in January 2025) has taken public positions emphasizing government waste reduction and fraud prevention. The question is whether pandemic fraud prosecutions will continue at the same pace under new leadership, or whether resources will be redirected to other priorities.
History suggests that even when administrations change, major fraud initiatives don’t just disappear—they transition. The cases are already being investigated, the evidence has been gathered, and U.S. Attorneys (who are appointed positions) have invested years in these prosecutions. While there might be a temporary slowdown during the transition period (new appointments, policy reviews, priority-setting), pandemic fraud prosecutions align with anti-waste, anti-fraud messaging that transcends party lines. Both Republican and Democratic lawmakers have supported the 10-year statute extension and increased resources for pandemic fraud enforcement.
The more likely scenario is that enforcement becomes MORE SELECTIVE rather than stopping entirely. Prosecutors might focus on the highest-dollar cases (over $500,000), cases involving organized fraud rings, cases with stolen identities or particularly egregious conduct, and cases that have significant deterrent value. Smaller cases (under $50,000) with isolated defendants might be lower priority, particularly if resources are constrained. But large-scale fraud, sophisticated schemes, and defendants who thumbed their noses at the government by buying luxury items with PPP money—those cases will continue regardless of who’s in the White House.
U.S. Attorneys in some districts are career prosecutors who’ve been handling these cases for years and have personal investment in seeing them through. Even if political leadership changes, the line prosecutors and investigators working PPP fraud cases will likely continue their work. And the 10-year statute gives them time to do it—there’s no rush to wrap up investigations just because of an administration change.
What Types of Cases Are Still Being Prosecuted?
The cases being charged NOW are different from the cases charged in 2021-2022. Early enforcement focused on low-hanging fruit—obviously fake businesses, people who didn’t hide their spending (posting pictures on social media of cars and jewelry bought with PPP money), applications using stolen identities, and very large-dollar frauds. Those cases were easy to prove and got headlines. But the investigations have matured, and prosecutors are now charging more nuanced cases that require detailed financial analysis and take longer to develop.
Mid-tier fraud cases ($100,000-$500,000). These involve businesses that actually existed but inflated payroll, exaggerated the number of employees, or made false statements about eligibility. Prosecutors are comparing PPP applications to IRS tax filings, state unemployment records, and bank statements to identify discrepancies. These cases take longer to investigate than obvious fake-business frauds, but there now being charged regularly.
Loan preparer schemes. Individuals who prepared PPP applications for dozens or hundreds of clients, taking kickbacks or fees and filing fraudulent applications on behalf of others. These are complex conspiracy cases involving multiple defendants, extensive financial records, and coordination between agencies. They take 3-5 years to investigate and prosecute, which is why there being charged now for conduct from 2020-2021.
Second-round PPP fraud. Defendants who got a legitimate first-draw PPP loan, then filed a fraudulent second-draw application claiming continued business operations when the business had actually closed or claiming payroll that didn’t exist. The forgiveness and second-draw applications are being scrutinized heavily, and fraud at that stage triggers separate charges with separate statute of limitations periods.
Identity theft cases. Defendants who used stolen Social Security numbers, synthetic identities, or deceased persons’ information to apply for loans. These cases carry mandatory additional prison time under 18 U.S.C. § 1028A (aggravated identity theft), making them high-priority for prosecutors. They also tend to involve larger schemes—people who used multiple stolen identities typically filed multiple fraudulent applications.
Money laundering charges. Defendants who took steps to hide or disguise the source of PPP funds—transferring money through multiple accounts, converting cash to cryptocurrency, making structured deposits to avoid reporting requirements. Money laundering charges under 18 U.S.C. § 1956 carry up to 20 years per count and are being added to PPP fraud cases involving sophisticated concealment efforts.
The common thread is that these are SERIOUS cases involving substantial fraud, multiple victims, or sophisticated conduct. Prosecutors have limited resources and there focusing them on cases that warrant federal prosecution. If your PPP fraud involved $15,000 and you spent it on rent and groceries, your case is lower priority than someone who stole $500,000 and bought a Bentley. That doesn’t mean you WON’T be prosecuted—smaller cases are still being charged—but it means you’re likely to be investigated and charged later rather than earlier.
Can Prosecutors Get More Time Beyond the 10-Year Statute?
Congress could theoretically extend the statute of limitations again, as long as the original 10-year period hasn’t expired yet. The Supreme Court has held that statute of limitations extensions don’t violate the Constitution’s ex post facto clause if the original period hasn’t run. So Congress could pass a law in 2028 extending the PPP fraud statute from 10 years to 15 years, and it would apply retroactively to 2020 conduct as long as the 10-year deadline hasn’t passed yet.
But as a practical matter, another extension seems unlikely. The 2022 extension from 5-6 years to 10 years was controversial and faced criticism from defense attorneys and civil liberties groups. Extending it again would raise serious questions about fairness—at what point does the government have ENOUGH time to investigate? Ten years is already very generous compared to most federal offenses (which have 5-year limitations). Another extension would likely face political opposition, particularly if proposed close to when the 10-year deadlines are expiring.
The DOJ’s 2024 Task Force report DID request that Congress extend statutes for ALL pandemic-related fraud (not just PPP), but that request has not been acted on and seems unlikely to gain traction. More importantly, the request was for FUTURE legislation, not retroactive extension of existing deadlines. So while prosecutors are asking for longer statutes for new types of pandemic fraud being discovered, there not pushing for extension of the PPP fraud deadlines that are already set.
What’s more likely is that prosecutors will use every day of the 10 years available. As we approach 2029-2030, expect to see a surge of indictments for 2020 conduct as prosecutors rush to charge cases before the deadlines. We saw this pattern with other fraud investigations where statutes were about to expire—prosecutors obtain indictments right before the deadline, sometimes with minimal investigation, then flesh out the case later. It’s better to indict and then dismiss if the evidence doesn’t pan out than to let the statute run and lose the case entirely.
What Happens to Civil Cases—Do They Have the Same Deadline?
Civil enforcement under the False Claims Act (31 U.S.C. § 3729) has a different statute of limitations than criminal prosecutions, and civil cases can continue even after the criminal statute expires. Under the FCA, the government has the later of: (1) 6 years from the violation, OR (2) 3 years from when the government knew or should have known about the violation, but in NO event more than 10 years from the violation.
For most PPP fraud, the “no more than 10 years” cap is the controlling deadline, same as criminal cases. But there’s an important difference: the 3-year discovery rule can extend civil liability beyond when criminal charges could be brought. If investigators discover evidence of fraud in 2029 for conduct that occurred in 2020, they have until 2030 to bring criminal charges (10 years from the violation) OR until 2032 to bring civil charges (3 years from discovery). So defendants might escape criminal prosecution but still face civil lawsuits seeking treble damages and penalties.
The practical effect is that civil liability can extend 2-3 years beyond criminal liability in some cases. And civil cases are being pursued aggressively—the Task Force reported over 400 civil settlements and judgments through 2024, with many more in the pipeline. Civil cases don’t require proof beyond a reasonable doubt (just preponderance of the evidence), don’t involve jury trials (judges decide), and allow the government to recover three times the loss plus penalties of up to $27,894 per false claim. A $100,000 PPP fraud could result in a civil judgment of $300,000-$350,000.
The government is also using administrative remedies that aren’t subject to the same statute of limitations. The SBA can audit loans, deny forgiveness, demand repayment, and debar defendants from future government contracting for 6 years after forgiveness or longer if fraud is involved. Those actions can continue even if the criminal statute has expired, and they’re separate from civil FCA liability.
Will They Really Prosecute Cases All the Way to 2030?
The predictor of future behavior is past behavior, and the evidence shows prosecutors ARE using the full statute of limitations period. We’re seeing indictments in 2024-2025 for conduct from 2020—that’s 4-5 years after the offense. If there prosecuting cases that are 5 years old, there’s no reason to think there won’t prosecute cases that are 8, 9, or 10 years old as the deadline approaches. The 10-year statute was specifically enacted to give prosecutors time to investigate complex cases, and complex cases take time.
Consider the investigative timeline. A PPP loan is flagged as suspicious in late 2020. Investigators are swamped with thousands of cases, so it sits in a queue until an agent is assigned in 2022. The agent spends 2022-2023 gathering evidence—subpoenaing bank records, pulling tax returns, interviewing witnesses. In 2024, the case is referred to the U.S. Attorney’s Office. Prosecutors review it, ask for additional investigation, and decide to charge in 2025. The grand jury returns an indictment in early 2026. That’s 6 years from the fraud to indictment, and the statute still has 4 years remaining.
Large-scale cases involving multiple defendants, organized fraud rings, or complex money laundering schemes take even longer. If investigators identify a loan preparer who filed 200 fraudulent PPP applications for different clients, they need to investigate all 200, determine which were fraudulent, identify the clients, gather evidence on each, and build a conspiracy case. That’s a multi-year investigation easily extending 5-7 years from the initial fraud. So a scheme that operated in 2020 might not result in indictments until 2026-2027.
The political dynamics also support continued enforcement. No politician wants to be seen as soft on pandemic fraud—voters are angry that billions were stolen while legitimate businesses struggled. Both parties have supported aggressive prosecution, and that’s unlikely to change. The statute was extended with bipartisan support, funding has been appropriated, and task forces have been established. Unwinding all that momentum would be politically difficult, even if an administration wanted to do it.
What If I Haven’t Heard Anything in Years—Am I Safe?
No. Silence doesn’t mean your safe—it might just mean your case is lower priority or is still being investigated. The fact that years have passed without contact from law enforcement doesn’t guarantee you won’t be charged. We’ve represented clients who committed PPP fraud in 2020, heard nothing for 4 years, then suddenly received target letters or search warrants in 2024. The investigation was ongoing the entire time; they just weren’t aware of it.
Federal investigations are conducted in SECRET. Investigators don’t announce “we’re investigating you” at the start. They gather evidence quietly—subpoenaing records from banks and lenders, pulling tax returns from the IRS, interviewing people who might have information. All of that happens without the target’s knowledge. The first indication most defendants have is when agents show up with a search warrant, or when they receive a target letter from the U.S. Attorney’s Office, or when there arrested.
The passage of time can actually be a BAD sign rather than a good sign. If your fraud was obvious and egregious, prosecutors probably would’ve charged you quickly—those are the easy cases that got prioritized in 2021-2022. If you HAVEN’T been charged yet despite having red flags (inflated payroll, fake documents, suspicious spending), it might mean your case is in the queue waiting to be investigated, not that prosecutors decided not to pursue it. As they finish the high-priority cases, there moving to the next tier, which might include yours.
The only ways to know for certain that your safe are: (1) the statute of limitations expires without charges being filed, OR (2) you receive a formal declination letter from the U.S. Attorney’s Office stating there not prosecuting. Short of those, there’s always risk as long as the statute hasn’t run. The risk might be LOWER after 5-6 years of silence than it was in the first 2-3 years, but it doesn’t disappear until the statute expires or you get a declination.
Can I Do Anything to Speed Up the Timeline or Get Closure?
Not really. Federal investigations proceed on the government’s timeline, not yours. You can’t force prosecutors to make a decision, and contacting them to ask “are you investigating me?” is a terrible idea—it just puts you on there radar if you weren’t already. The approach is to consult with a federal criminal defense attorney if your concerned about potential exposure, and then either: (1) wait for the statute to run, (2) consider voluntary disclosure if the facts support it, or (3) respond appropriately if investigators contact you.
Voluntary disclosure—proactively contacting the government through an attorney to report an error or problem with your PPP loan—MIGHT result in a decision not to prosecute, but there’s no guarantee. The DOJ has encouraged voluntary disclosure in some contexts, but they haven’t offered blanket non-prosecution agreements for people who self-report. The benefit is demonstrating lack of criminal intent; the risk is putting yourself on the government’s radar when you might never have been investigated. Whether voluntary disclosure makes sense depends heavily on the specific facts.
If you’ve already paid back the PPP loan in full, that’s evidence in your favor if your ever charged, but it doesn’t prevent prosecution. If you have documentation showing your application was based on good-faith reliance on professional advice or that any errors were unintentional, preserving that evidence is important. But you can’t force prosecutors to review it or make a decision—they’ll investigate on their own timeline.
The frustrating reality is that defendants often live in limbo for years, uncertain whether charges will be filed. That uncertainty is part of why the statute of limitations exists—at SOME point, the government has to make a decision or lose the case. For PPP fraud, that point is 10 years from the offense. Until then, all you can do is preserve evidence, avoid making false statements if contacted by investigators, and consult with an attorney if your situation warrants it.
What Should I Do If the Deadline Is Approaching?
If the 10-year deadline for your PPP fraud is approaching and you haven’t been charged, the question is whether to breathe a sigh of relief or expect a last-minute indictment. The answer depends on whether you’ve seen any investigative activity. If you’ve received subpoenas, been interviewed by agents, had search warrants executed, or received a target letter, prosecutors are probably working toward charges and might indict right before the deadline. If you’ve heard NOTHING and the deadline is approaching, the chances of prosecution decrease significantly as the deadline gets closer.
But don’t assume your safe just because the deadline is near. As mentioned earlier, prosecutors sometimes obtain sealed indictments close to the deadline, then unseal them later when they locate the defendant or when related cases are ready to be charged together. A sealed indictment is timely as long as the grand jury returns it before the statute expires, even if your not arrested until months or years later.
If the deadline passes without an indictment, your exposure for THAT offense ends. But remember: if you committed multiple fraudulent acts (initial application + forgiveness application, or multiple PPP loans), each has its own statute. The deadline passing for one offense doesn’t eliminate liability for others. And civil liability can extend beyond criminal liability under the False Claims Act’s discovery rule.
The practical advice: if the 10-year deadline is 6-12 months away and you haven’t heard anything, your chances of avoiding prosecution are improving. If it’s 1-3 months away with no contact, you’re probably in the clear. If it’s within weeks, start planning what you’ll do when it expires. But until it actually expires, there’s still risk, and you should be prepared for the possibility of late-stage charges.
If your facing a PPP fraud investigation or if your concerned about the timeline for potential prosecution, consult with an experienced federal criminal defense attorney. Understanding when the statute expires for your specific case, what investigative activity (if any) suggests about the likelihood of charges, and how to respond if investigators contact you can make an enormous difference in the outcome. We represent clients in PPP fraud cases throughout California and the federal system, and we can assess your exposure, advise on your options, and defend you if charges are filed. The deadlines for PPP fraud prosecutions extend through 2030 and beyond—but that doesn’t mean every case will be charged, and understanding where your case falls in prosecutors’ priorities is the first step toward managing your risk. Call us for a consultation.