Alaska PPP Loan Fraud Lawyers: Federal Defense in Anchorage

If you’re facing PPP loan fraud charges in Alaska, your entire life is on the line. The U.S. Attorney’s Office for the District of Alaska has made pandemic relief fraud prosecutions a top priority, and their going after business owners who received Paycheck Protection Program loans with unprecedented aggression. Federal investigators—the FBI, IRS Criminal Investigation, and SBA Office of Inspector General—are building cases against Alaskans accused of misusing COVID-19 relief funds, and when they come knocking, your facing criminal charges that could send you to federal prison for decades.

This ain’t a state case. This is federal. The consequences are severe, the investigation process is complex, and the government has nearly unlimited resources to prosecute you. You need an experienced Alaska federal defense lawyer who understands how the District of Alaska operates, knows the federal prosecutors at the U.S. Attorney’s Office in Anchorage, and has handled PPP fraud cases from investigation through trial.

Look, here’s the deal: the government is taking these cases seriously. In February 2024, U.S. Attorney S. Lane Tucker announced that white-collar and financial crimes—including PPP and EIDL loan fraud—would be a prosecutorial priority for her office. They’ve established a formal COVID-19 Fraud Task Force to identify, investigate, and prosecute anyone who defrauded pandemic relief programs. Your not just dealing with a single agency; your dealing with a coordinated effort between multiple federal law enforcement organizations, all focused on one thing: convictions.

The James M. Fitzgerald United States Courthouse in Anchorage is where your case will be heard. Alaska has one federal district, one U.S. Attorney’s Office, and one federal courthouse—and irregardless of where in Alaska you live or where the alleged fraud occured, your case goes to Anchorage. The federal judges sitting on the bench in the District of Alaska are appointed for life, and they’ve seen it all. But PPP fraud cases? These are relatively new, and judges are imposing harsher sentences in 2024 and 2025 then they did in 2021 and 2022.

What Constitutes PPP Loan Fraud in Alaska?

PPP loan fraud happens when you knowingly made false statements on your Paycheck Protection Program loan application, misused the funds after you received them, or engaged in any scheme to defraud the Small Business Administration or your PPP lender. The government doesn’t need to prove you got away with it—they just need to prove you tried.

Here’s what the feds consider PPP fraud, and trust me on this, they cast a wide net:

False Statements on the Application

When you applied for a PPP loan, you certified certain facts under penalty of perjury. You certified that your business was operational on February 15, 2020. You certified the number of employees you had. You certified your average monthly payroll costs. You certified that the loan was neccessary due to economic uncertainty caused by COVID-19. You certified you would use the funds for payroll, rent, utilities, and other approved expenses.

If any of those certifications were false, and you knew they were false when you made them, that’s fraud. It don’t matter if you intended to pay the money back. It don’t matter if you thought you deserved the loan. What matters is wether you lied on a federal loan application.

Common false statements that lead to prosecutions include:

• Inflating the number of employees or payroll costs to get a larger loan
• Claiming your business was operational when it wasn’t
• Applying for multiple PPP loans using different business names (when you was only entitled to one)
• Using a fake or someone else’s Social Security number
• Submitting falsified tax documents, payroll records, or bank statements
• Claiming employees who didn’t exist or who wasn’t actually on your payroll

The government reviews your entire application package. They compare what you submitted to the SBA with your actual tax returns (which they get from the IRS), your payroll records (which they subpoena from your payroll company), your bank statements (which they subpoena from your bank), and any other buisness records they can find. If there’s a discrepency—if the numbers don’t match—your gonna have to explain it. And if you can’t explain it, your probably getting charged.

Misuse of PPP Funds

Even if your application was truthful, you can still be charged with fraud if you misused the loan proceeds. PPP loans had to be used for specific purposes: payroll costs, mortgage interest, rent, utilities, and certain other business expenses. The program was designed to keep workers employed during the pandemic—not to fund personal purchases.

Misuse of PPP funds that leads to federal charges include:

• Transfering loan funds from your business account to you’re personal account and using them for personal expenses
• Purchasing luxury items—cars, boats, jewelry, vacations
• Using PPP funds to buy a house or pay down personal debt
• Gambling with PPP loan proceeds
• Investing the money in stocks, cryptocurrency, or other investments
• Using the funds for a different business then the one that applied for the loan

One of the highest-profile Alaska PPP fraud cases involves Cheryl Labrie, a 36-year-old Anchorage businesswoman who owned AKBS LLC, which operated as a Liberty Tax Service. According to the indictment returned in January 2024, Labrie applied for and recieved multiple EIDL and PPP loans totaling approximately $1 million. The government alleges she transfered the funds from her business bank account to her personal account and used the money to buy a new home, pay an outstanding tax debt for a seperate entity, and pay payroll expenses for a marijuana dispensary. She’s charged with four counts of wire fraud, two counts of bank fraud, and six counts of money laundering—charges that carry decades in federal prison.

That case shows you how the government approaches PPP fraud prosecutions. Their not just charging you with one count; their charging you with multiple counts based off every transaction, every wire transfer, every false statement. Each count is a seperate opportunity for the government to stack years onto your sentance.

PPP Loan Forgiveness Fraud

PPP loans could be forgiven if you used the funds properly and submitted the required documentation. But if you lied on your loan forgiveness application—if you claimed you used the money for payroll when you didn’t, if you submitted fake payroll records or tax forms, if you certified facts that wasn’t true—that’s a whole new fraud scheme, and it comes with additional charges.

The SBA reviews forgiveness applications carefully. They cross-reference the data you provided with IRS records, state unemployment insurance records, and your original loan application. If something don’t add up, they refer the case to the SBA Office of Inspector General, which refers it to the FBI and the U.S. Attorney’s Office. And then your under federal investigation.

Identity Theft and Aggravated Identity Theft

If you used someone else’s name, Social Security number, or Employer Identification Number to apply for a PPP loan—or if you applied for a loan on behalf of a buisness that didn’t exist or that you didn’t own—you can be charged with identity theft under 18 U.S.C. § 1028 or aggravated identity theft under 18 U.S.C. § 1028A.

Aggravated identity theft carries a mandatory minimum sentence of two years in federal prison, and that sentence runs consecutive to whatever sentence you get for the underlying fraud charges. Mandatory means the judge has no discretion—if your convicted, your going to prison for at least two years, no matter what.

The Federal Investigation Process in Alaska

PPP fraud investigations in Alaska are conducted by a joint task force that includes the FBI’s Anchorage Field Office, IRS Criminal Investigation, the SBA Office of Inspector General, and sometimes the Secret Service or Postal Inspection Service. These are experienced federal agents who know how to build financial crime cases, and they’ve got tools and resources that state investigators don’t have.

Here’s how the investigation typically unfolds, and believe me, it’s a process designed to gather overwhelming evidence against you before you even know your a target.

How the Investigation Starts

Most PPP fraud investigations start with a referral from the SBA Office of Inspector General. The SBA uses data analytics to identify suspicious loan applications—applications with inflated payroll figures, applications from businesses that don’t have a tax history, applications that was submitted from the same IP address, multiple applications using similar information. When the SBA’s fraud detection algorithms flag an application, they refer it to the OIG, which opens an investigation.

Sometimes investigations start with tips. A buisness partner, an ex-spouse, a disgruntled employee, or even a competitor might report you to federal authorities. The FBI has a hotline for reporting pandemic fraud, and their encouraging people to call it.

Once an investigation is opened, the agents start gathering evidence. And there gonna get it wether you cooperate or not.

Subpoenas and Records Collection

Federal investigators use administrative and grand jury subpoenas to obtain records from third parties—your bank, your payroll company, your accountant, your tax preparer, your landlord, your customers, your vendors. You won’t necessarily know these subpoenas have been issued, because the recipients are usually prohibited from telling you.

The government is gonna get:

• Your complete banking records—every deposit, every withdrawl, every transfer
• Your tax returns and IRS transcripts for multiple years
• Your payroll records, including Forms 941, W-2s, and W-3s
• Your PPP loan application and all supporting documents
• Your PPP loan forgiveness application and supporting documents
• Records from your PPP lender showing how you used the funds
• Business formation documents, operating agreements, and corporate filings
• Email correspondance related to the loan application and use of funds

They analyze all of this, looking for inconsistencies. Did you report $10,000 a month in payroll costs on your PPP application, but only $3,000 a month on your tax returns? Did you claim 15 employees on your application, but your Form 941 shows only 5? Did you transfer the loan proceeds to your personal account the day after you recieved them? These discrepencies become the foundation of the government’s case.

Witness Interviews

Federal agents will interview anyone who has knowlege of your business operations. Your employees. Your accountant. Your business partners. Your family members. Their gonna ask detailed questions about your business—how many people worked there, what the payroll was, wether the business was operational during the pandemic, how you used the PPP funds.

These interviews are conducted under 18 U.S.C. § 1001, which makes it a federal crime to lie to a federal agent. So the people their interviewing have a strong incentive to tell the truth, even if that truth is damaging to you. And if they lie to protect you? They can be charged with making false statements to federal investigators, a crime that carries up to five years in prison.

The Target Letter

If your the subject of a federal investigation, you might recieve a target letter from the U.S. Attorney’s Office. A target letter informs you that your under investigation and that the government believes you committed a crime. It usually invites you to come in for an interview or to provide information in your defense.

Do not—and I mean this—do not respond to a target letter without talking to a federal defense attorney first. Anything you say to federal investigators can and will be used against you. The interview isn’t an opportunity to “clear things up” or “explain your side.” Its an opportunity for the government to lock you into a statement, gather more evidence, and build a stronger case.

An experianced Alaska federal defense lawyer can communicate with the U.S. Attorney’s Office on your behalf, provide information that might convince them not to charge you, and negotiate a resolution that avoids an indictment—if thats possible.

The Indictment

If the investigation produces sufficient evidence, the U.S. Attorney’s Office will present the case to a federal grand jury. The grand jury proceedings are secret, and you don’t have a right to be there or to present a defense. The grand jury hears only the government’s side, and they almost always return an indictment.

Once your indicted, your gonna be arrested. In Alaska, that usually means surrendering to the U.S. Marshals Service at the federal courthouse in Anchorage, though in some cases agents will arrest you at your home or place of buisness. You’ll be brought before a federal magistrate judge for your initial appearance, where the charges are read, you’re informed of your rights, and bail is set.

PPP fraud defendants in Alaska are often released on bail, but the conditions can be strict—travel restrictions, surrendering your passport, regular check-ins with pretrial services, and sometimes electronic monitoring. If the government believes your a flight risk or a danger to the community, they can ask the judge to detain you without bail pending trial.

Federal Charges in PPP Fraud Cases

PPP fraud cases are prosecuted under several federal statutes, each carrying serious penalties. The U.S. Attorney’s Office typically charges defendants with multiple counts under multiple statutes, maximizing the potential prison time and giving the government leverage in plea negotiations.

Wire Fraud (18 U.S.C. § 1343)

Wire fraud is the most common charge in PPP fraud cases. The statute applies whenever you used interstate wire communications—email, phone, electronic funds transfer—to execute a fraud scheme. Since PPP applications was submitted online and loan funds was transfered electronically, nearly every PPP fraud case involves wire fraud.

To convict you of wire fraud, the government must prove:

1. You knowingly participated in a scheme to defraud or obtain money by false pretenses
2. You did so with the intent to defraud
3. You used interstate wire communications in furtherance of the scheme

Wire fraud carries a maximum sentence of 20 years in federal prison per count, a fine of up to $250,000 per count, and up to three years of supervised release. If the fraud affected a financial institution—which it does in PPP cases, because your PPP lender is a financial institution—the maximum sentence increases to 30 years per count and the fine increases to $1 million.

In Alaska, the U.S. Attorney’s Office routinely charges defendants with multiple counts of wire fraud based off each electronic communication or transaction. One fraudulent PPP application might generate five or ten wire fraud counts—one for submitting the application, one for each email exchange with the lender, one for the electronic funds transfer, one for the loan forgiveness application. Its a way of stacking charges and increasing your exposure.

Bank Fraud (18 U.S.C. § 1344)

Bank fraud applies when you knowingly executed a scheme to defraud a financial institution or obtained money from a financial institution by false pretenses. Your PPP lender—whether it was a bank, credit union, or online lender—is a financial institution, and submitting a fraudulent PPP application is bank fraud.

To prove bank fraud, the government must show:

1. You knowingly executed or attempted to execute a scheme to defraud a financial institution
2. You did so with the intent to defraud

Bank fraud carries a maximum sentence of 30 years in federal prison per count, a fine of up to $1 million per count, and up to five years of supervised release.

The Cheryl Labrie case out of Anchorage includes two counts of bank fraud in addition to wire fraud and money laundering charges. The government is alleging that her fraudulent applications to obtain EIDL and PPP loans defrauded the financial institutions that issued those loans.

False Statements to a Financial Institution (18 U.S.C. § 1014)

Section 1014 makes it a federal crime to knowingly make a false statement to a financial institution for the purpose of influencing the institution’s action on a loan application. If you lied on your PPP application—if you overstated your payroll costs, inflated your employee count, submitted fake tax documents, or made any other material misrepresentation—you can be charged under this statute.

To convict you under Section 1014, the government must prove:

1. You made a false statement or report
2. The statement was made to a financial institution
3. The statement concerned a matter within the jurisdiction of the financial institution
4. You made the statement knowingly and with the intent to influence the institution’s action on a loan application

Section 1014 carries a maximum sentence of 30 years in federal prison, a fine of up to $1 million, and up to five years of supervised release.

Money Laundering (18 U.S.C. §§ 1956, 1957)

If you moved PPP loan proceeds between accounts, transfered funds from your business account to your personal account, or used the money to purchase assets, the government might charge you with money laundering. Money laundering charges are common in PPP fraud cases involving large loan amounts or sophisticated attempts to conceal the fraud.

Under Section 1956, the government must prove you conducted a financial transaction involving proceeds of unlawful activity (the fraudulent PPP loan) with the intent to promote the unlawful activity, conceal the source of the funds, or avoid transaction reporting requirements.

Under Section 1957, the government must prove you engaged in a monetary transaction (over $10,000) using criminally derived property.

Money laundering carries a maximum sentence of 20 years in federal prison per count under Section 1956, or 10 years per count under Section 1957, plus fines and supervised release.

Cheryl Labrie was charged with six counts of money laundering based off her alleged transfer of PPP and EIDL funds from her business account to her personal account and her use of those funds to purchase a home and pay personal debts.

Aggravated Identity Theft (18 U.S.C. § 1028A)

If you used someone else’s personal information to apply for a PPP loan—someone else’s Social Security number, name, or business information—you can be charged with aggravated identity theft. This charge carries a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence you recieve.

Mandatory consecutive means if your convicted of wire fraud and sentenced to three years, and your also convicted of aggravated identity theft, the judge must sentence you to at least five years total—three for the wire fraud plus two for the identity theft. The judge has no discretion to run the sentences concurrently or to sentence you to less then two years on the identity theft count.

Federal Sentencing for PPP Fraud in Alaska

If your convicted of PPP fraud in the District of Alaska, your sentence will be determined under the United States Sentencing Guidelines. The Guidelines are complex, but they provide a framework for calculating a recommended sentencing range based on the seriousness of the offense and your criminal history.

Here’s what you need to know about how federal sentencing works in PPP fraud cases, and why hiring an experienced federal defense attorney is essential to minimizing your exposure.

The Sentencing Guidelines: Loss Amount Matters

In fraud cases, the most important factor in determining your sentence is the loss amount—the amount of money involved in the fraud. The higher the loss, the higher your Guidelines range.

The base offense level for fraud is 6. From there, the loss amount increases your offense level according to this table:

• Loss of $6,500 or less: +0 levels
• Loss of $6,500 to $15,000: +2 levels
• Loss of $15,000 to $40,000: +4 levels
• Loss of $40,000 to $95,000: +6 levels
• Loss of $95,000 to $150,000: +8 levels
• Loss of $150,000 to $250,000: +10 levels
• Loss of $250,000 to $550,000: +12 levels
• Loss of $550,000 to $1.5 million: +14 levels
• Loss of $1.5 million to $3.5 million: +16 levels
• Loss of $3.5 million or more: +18 to +30 levels

So if you fraudulently obtained a $200,000 PPP loan, your base offense level is 6, plus 10 levels for the loss amount, giving you an offense level of 16 before any other adjustments. An offense level of 16 with no criminal history (Criminal History Category I) produces a Guidelines range of 21 to 27 months in federal prison.

But the government is gonna argue for enhancements—additional increases to your offense level based off specific characteristics of your offense.

Sentencing Enhancements

Common enhancements in PPP fraud cases include:

• Sophisticated means enhancement (+2 levels): If the fraud involved sophisticated means—using shell companies, falsifying multiple documents, conducting transactions through multiple accounts—the government will seek a two-level enhancement. This enhancement is routinely applied in PPP fraud cases.
• Abuse of position of trust (+2 levels): If you held a position of trust—such as a tax preparer, accountant, or financial advisor—and you abused that position to commit the fraud, you get a two-level enhancement.
• More than 10 victims (+2 levels): If the fraud involved more than 10 victims, you get a two-level enhancement. The government sometimes argues that each person who would have been eligible for a PPP loan but couldn’t get one because you took funds fraudulently is a victim.
• Mass-marketing enhancement (+2 levels): If you used mass-marketing techniques—such as advertising your services to help others obtain fraudulent PPP loans—you get a two-level enhancement.

Lets say your offense level started at 16 (based off a $200,000 loss). Add a sophisticated means enhancement (+2), and your now at 18. Add an abuse of position enhancement (+2), and your at 20. An offense level of 20 with no criminal history produces a Guidelines range of 33 to 41 months—nearly three and a half years in federal prison.

Acceptance of Responsibility

The Guidelines provide a reduction in your offense level if you accept responsibility for your offense. If you plead guilty, cooperate with the probation office, and demonstrate genuine remorse, you can get a two-level reduction (and if your offense level is 16 or higher and you plead guilty early enough, you can get a third level off).

Acceptance of responsibility can make a huge diffrence. An offense level of 20 with acceptance of responsibility becomes 17. An offense level of 17 with no criminal history produces a Guidelines range of 24 to 30 months—a year less then the range without acceptance of responsibility.

But you only get acceptance of responsibility if you plead guilty. If you go to trial and lose, you don’t get it. Thats one of the reasons why more then 90% of federal defendants plead guilty—the trial penalty is real, and its severe.

Departures and Variances

The Sentencing Guidelines are advisory, not mandatory. A federal judge can depart from the Guidelines if there are circumstances that the Guidelines didn’t adequately consider, or the judge can vary from the Guidelines based on the factors set forth in 18 U.S.C. § 3553(a)—the seriousness of the offense, your history and characteristics, the need for the sentence to reflect the seriousness of the offense, and the need to provide adequate deterrence.

In recent years, federal judges in Alaska and nationwide have been varying upward in PPP fraud cases more often then varying downward. The government has emphasized pandemic relief fraud as a priority, and judges are responding with harsher sentences then defendants received in 2021 and 2022. If you committed PPP fraud and your just now getting sentenced in 2024 or 2025, your likely facing a tougher judge then defendants who was sentenced a few years ago.

Restitution

In addition to prison time, the court will order you to pay restitution—full repayment of the fraudulently obtained funds. Restitution is mandatory in fraud cases, and it can’t be discharged in bankruptcy. If you got a $200,000 PPP loan fraudulently, your gonna owe $200,000 in restitution, plus interest, regardless of wether you spent the money or still have it.

The court may also impose fines, though in practice, restitution usually takes priority over fines.

Defenses to PPP Fraud Charges

Not every PPP fraud case is unwinnable. There are defenses—legal arguments and factual challenges—that an experianced federal defense lawyer can raise to fight the charges, get them dismissed, or negotiate a favorable plea agreement.

Lack of Intent to Defraud

The government has to prove you acted with the intent to defraud. If you made a mistake on your PPP application—if you miscalculated your payroll costs, misunderstood the eligibility requirements, or relied on incorrect advice from your accountant—you might not have had the intent to defraud.

Intent is a difficult element for the government to prove, because it requires showing what you was thinking when you submitted the application. If you can demonstrate that you believed in good faith that your application was accurate, or that you relied on professional advice, you may have a defense.

That said, the government is gonna argue that you should of known the information was false, or that you deliberately ignored red flags. The “ostrich defense”—burying your head in the sand and claiming you didn’t know—doesn’t work. But genuine, good-faith mistakes can be a defense, particularly if you have documentation supporting your belief that the application was accurate.

Reliance on Professional Advice

If you relied on the advice of an accountant, attorney, or other professional in preparing your PPP application, and that advice was incorrect, you may have a defense based off reliance on professional advice. The key is that you must have made full disclosure to the professional, relied on their advice in good faith, and had a reasonable basis for believing the advice was correct.

This defense requires documentation. Did you email your accountant asking whether you could include certain expenses in your payroll calculation? Did they respond saying yes? Did you rely on that advice when you filled out the application? If you can show that chain of events, you may be able to argue that you lacked the intent to defraud.

Insufficient Evidence

The government bears the burden of proof. They have to prove every element of the offense beyond a reasonable doubt. If the evidence is weak—if the government’s case relies on ambiguous documents, questionable witness testimony, or circumstantial evidence—your attorney can challenge the sufficiency of the evidence and argue for dismissal or acquittal.

In some cases, the government’s evidence is based off assumptions or inferences that don’t hold up under scrutiny. An experianced defense lawyer knows how to attack the government’s case, cross-examine their witnesses, and present alternative explanations for the evidence.

Challenging the Loss Amount

Even if the government can prove you committed fraud, the loss amount is often disputed. Remember, the loss amount drives your sentencing range. If the government claims the loss was $500,000 but you can show it was actually $100,000, your sentencing range drops significantly.

Your defense attorney can challenge the government’s loss calculation by presenting evidence that some of the loan proceeds was used for legitimate business expenses, that you repaid part of the loan, or that the government’s calculation includes amounts that wasn’t actually lost.

Negotiating a Plea Agreement

In many PPP fraud cases, the best defense strategy is negotiating a favorable plea agreement. A plea agreement allows you to plead guilty to reduced charges or fewer counts in exchange for the government’s agreement to recommend a lower sentence.

An experianced Alaska federal defense lawyer can negotiate with the U.S. Attorney’s Office to:

• Reduce the number of counts your pleading guilty to
• Reduce the charges (for example, pleading to a misdemeanor instead of a felony)
• Agree on a lower loss amount for sentencing purposes
• Agree not to seek certain sentencing enhancements
• Recommend a specific sentence or sentencing range
• Agree to a diversion program or deferred prosecution agreement (in rare cases)

Plea negotiations require skill, experience, and a relationship with the prosecutors. A lawyer who practices regularly in the District of Alaska, who knows the Assistant U.S. Attorneys handling the case, and who has handled similar cases in the past is in the best position to negotiate a favorable outcome.

Why You Need an Alaska Federal Defense Lawyer

Federal criminal cases are different from state cases. The rules are different, the procedures are different, the prosecutors are different, and the stakes are higher. If your facing PPP fraud charges in Alaska, you need a lawyer who practices in federal court, understands federal criminal procedure, knows the U.S. Sentencing Guidelines, and has experience handling white-collar fraud cases in the District of Alaska.

Federal Court Experience

Not all criminal defense lawyers practice in federal court. Federal court requires seperate admission—you have to be admitted to the bar of the District of Alaska to appear in the federal courthouse in Anchorage. The rules of evidence, the Federal Rules of Criminal Procedure, and the local rules of the District of Alaska are different from state court rules.

A lawyer who primarily practices in Alaska state court may not be familiar with federal procedure, the Sentencing Guidelines, or the way federal prosecutors build cases. You need a lawyer who practices regularly in federal court and who knows the system inside and out.

Relationships with Federal Prosecutors

Federal defense attorneys who practice regularly in the District of Alaska develop working relationships with the Assistant U.S. Attorneys in the Anchorage office. These relationships matter. A prosecutor is more likely to negotiate in good faith with a lawyer they know and respect then with a lawyer they’ve never worked with before.

An experianced federal defense lawyer can pick up the phone and talk to the prosecutor handling your case, provide information that might convince them not to charge you, and negotiate a plea agreement that minimizes your exposure. A lawyer who doesn’t have those relationships is starting from scratch.

Knowledge of the Judges

The District of Alaska has a small number of federal judges, and experienced federal defense lawyers know how each judge approaches sentencing, what arguments resonate with them, and what to expect at trial. This knowledge is invaluable when developing a defense strategy and making tactical decisions.

For example, some judges are more inclined to vary downward from the Guidelines in fraud cases involving first-time offenders, while others adhere closely to the Guidelines range. Knowing which judge is assigned to your case and how that judge typically sentences defendants in similar cases can inform your decision about whether to plead guilty or go to trial, and what arguments to make at sentencing.

Experience with Financial Crime Cases

PPP fraud cases are financial crime cases. They involve complex financial records, accounting issues, tax documents, and detailed analysis of bank transactions. A lawyer who primarily handles drug cases or violent crime cases may not have the experience or expertise to effectively defend a financial crime case.

You need a lawyer who understands financial documents, who can work with forensic accountants and financial experts, and who can challenge the government’s financial analysis. White-collar defense requires a different skill set then defending a drug trafficking case or an assault case.

Protecting Your Rights from Day One

If your under investigation for PPP fraud, every decision you make—what you say to investigators, what documents you provide, whether you cooperate—can affect the outcome of your case. An experianced federal defense lawyer can advise you on how to respond to the investigation, communicate with federal agents on your behalf, and protect your constitutional rights.

One of the biggest mistakes people make is talking to federal investigators without a lawyer present. You might think you can explain the situation and clear things up. But anything you say can be used against you, and even truthful statements can be twisted or taken out of context. Federal agents are skilled interrogators, and their goal is to gather evidence, not to help you.

Your defense lawyer can communicate with investigators on your behalf, provide information in a controlled manner, and ensure that your rights are protected throughout the investigation.

Recent PPP Fraud Prosecutions in Alaska

The U.S. Attorney’s Office for the District of Alaska has been actively prosecuting PPP fraud cases, and the cases that have been brought show the government’s approach and the penalties defendants are facing.

Cheryl Labrie – Anchorage Businesswoman Charged with $1 Million Fraud

In January 2024, a federal grand jury indicted Cheryl Labrie, 36, of Anchorage, on charges related to the fraudulent obtainment and laundering of approximately $1 million in COVID-19 relief funds. Labrie owned AKBS LLC, which operated as a Liberty Tax Service.

According to the indictment, Labrie applied for and obtained an EIDL advance, two EIDL loans, two PPP loans, and the forgiveness of two PPP loans for her business. The government alleges that she transfered the funds from her business bank account to her personal account and used the money to purchase a new home, pay an outstanding tax debt for a seperate entity, and pay payroll expenses for a marijuana dispensary.

She was charged with four counts of wire fraud (18 U.S.C. § 1343), two counts of bank fraud (18 U.S.C. § 1344), and six counts of money laundering (18 U.S.C. § 1956). If convicted on all counts, she faces decades in federal prison.

This case is a good example of how the government approaches PPP fraud prosecutions. Their not just charging one count of fraud; their charging multiple counts based off each transaction and each misrepresentation. And their adding money laundering charges based off the movement of funds from business accounts to personal accounts.

Peter Igwacho – Anchorage Resident Prosecuted in Oregon

Peter Igwacho, 64, an Anchorage resident, was prosecuted in the District of Oregon for wire fraud related to PPP and EIDL fraud. Between April 2020 and October 2021, Igwacho filed at least five fraudulent applications for pandemic stimulus funds.

In July 2024, a federal jury in Portland found him guilty of wire fraud. He faces a maximum sentence of 20 years in federal prison, a $250,000 fine, and three years of supervised release. His sentencing hearing has not yet occured as of the date of this article.

This case demonstrates that PPP fraud prosecutions can occur outside of Alaska even if the defendant lives in Alaska. Federal jurisdiction is broad, and if any part of the fraud occured in another district—such as submitting an application through a lender based in another state—the case can be prosecuted there.

U.S. Attorney’s Office Announces COVID-19 Fraud Task Force

In February 2024, U.S. Attorney S. Lane Tucker announced that white-collar and financial crimes, including PPP and EIDL loan fraud, would be a prosecutorial priority for her office. She formally established an interagency COVID-19 Fraud Task Force to identify, investigate, and prosecute those who defrauded pandemic relief programs.

The Task Force includes the FBI, IRS Criminal Investigation, SBA Office of Inspector General, and other federal agencies. The establishment of this Task Force signals that PPP fraud prosecutions in Alaska will continue for the forseeable future, even though the pandemic is over and the PPP program has ended.

What to Do If Your Under Investigation or Charged

If you recieved a target letter, if federal agents contacted you, or if you’ve been charged with PPP fraud, here’s what you need to do immediantly:

1. Do Not Talk to Federal Investigators Without a Lawyer

You have the right to remain silent. You have the right to have a lawyer present during any questioning. Excercise those rights. Do not try to explain your way out of the situation. Do not provide documents or information without consulting a lawyer first. Anything you say can and will be used against you.

2. Hire an Experienced Alaska Federal Defense Lawyer Immediately

Time matters. The sooner you have a lawyer involved, the better your chances of avoiding charges or negotiating a favorable outcome. A lawyer can communicate with investigators on your behalf, review the evidence against you, and advise you on how to proceed.

3. Preserve Documents and Evidence

Do not destroy any documents related to your PPP loan application, your business, or your finances. Destroying evidence is a federal crime (obstruction of justice), and it will make your situation worse. Your lawyer will advise you on what to preserve and how to organize your records.

4. Do Not Discuss Your Case with Anyone Except Your Lawyer

Do not talk about your case with family members, friends, business partners, or employees. The government can subpoena these people to testify against you, and anything you told them can be used as evidence. The only person you can speak to with absolute confidentiality is your attorney.

5. Understand Your Options

Your lawyer will review the evidence, assess the strength of the government’s case, and advise you on your options. Those options may include:

• Cooperating with the investigation in hopes of avoiding charges or reducing your sentence
• Negotiating a plea agreement to resolve the case without going to trial
• Challenging the charges and taking the case to trial
• Seeking a pretrial diversion or deferred prosecution agreement (in rare cases)

There’s no one-size-fits-all strategy. The right approach depends on the facts of your case, the strength of the evidence, and your goals.

The Consequences of a PPP Fraud Conviction

A federal conviction for PPP fraud doesn’t just mean prison time. The collateral consequences can affect the rest of your life.

Federal Prison

Federal prison is different from state prison. There’s no parole in the federal system. If your sentenced to five years, your gonna serve at least 85% of that sentence (with good time credit). You’ll likely be sent to a federal prison facility outside of Alaska—there’s only one federal prison in Alaska (a minimum-security camp in Sheridan, Oregon, for Alaska defendants), and most Alaska federal defendants are sent to facilities in the Pacific Northwest or elsewhere.

Supervised Release

After you complete your prison sentence, you’ll be placed on supervised release (similar to probation) for a period of up to five years. During supervised release, you’ll have to report to a probation officer, comply with conditions such as maintaining employment and not committing new crimes, and you can be sent back to prison if you violate the conditions.

Restitution

You’ll owe full restitution for the fraudulently obtained funds, plus interest. Restitution is a debt that can’t be discharged in bankruptcy, and the government can garnish your wages, seize your assets, and pursue collection for the rest of your life.

Loss of Professional Licenses

If you hold a professional license—such as a CPA license, a law license, a medical license, or a contractor’s license—a federal felony conviction may result in the suspension or revocation of that license. This can end your career and your ability to earn a living in your profession.

Loss of Voting Rights and Gun Rights

A federal felony conviction results in the loss of your right to vote (while incarcerated) and the permanent loss of your right to own or possess firearms. These rights can sometimes be restored through a pardon or other legal process, but that process is lengthy and uncertain.

Difficulty Finding Employment

A federal fraud conviction will show up on background checks, making it difficult to find employment, particularly in positions of trust or positions that require handling money. Many employers won’t hire someone with a fraud conviction.

Immigration Consequences

If your not a U.S. citizen, a federal fraud conviction can result in deportation, denial of naturalization, and inadmissibility to the United States. Fraud offenses are considered crimes involving moral turpitude, and they carry severe immigration consequences.

Conclusion: Protect Your Future with Experienced Federal Defense

PPP fraud charges in Alaska are serious. The U.S. Attorney’s Office is prosecuting these cases aggressively, the penalties are severe, and the consequences of a conviction can follow you for the rest of your life. But your not without options. An experianced Alaska federal defense lawyer can investigate the charges, challenge the government’s evidence, negotiate with prosecutors, and fight to protect your rights and your freedom.

If your under investigation or facing charges, don’t wait. Contact a federal defense attorney who practices in the District of Alaska, who understands the complexities of PPP fraud prosecutions, and who has the experience to handle your case from investigation through trial. Your future depends on the decisions you make right now, and the quality of the legal representation you choose.

The stakes couldn’t be higher. Federal prison. Restitution in the hundreds of thousands of dollars. Loss of your professional license. Loss of your business. Loss of your reputation. These are the consequences your facing, and the government isn’t gonna go easy on you just because you made a mistake or because you didn’t understand the rules.

But with the right lawyer—someone who knows federal court, who knows the prosecutors, who knows the judges, and who knows how to defend financial crime cases—you have a fighting chance. Don’t face this alone. Get experienced legal representation, and give yourself the best possible chance at a favorable outcome.