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When you’re facing a federal issue, you need an attorney whose going to be available 24/7 to help you get the results and outcome you need. The value of working with the Spodek Law Group is that we treat each and every client like a member of our family.

Atlanta PPP and EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) loan fraud is a federal crime under the Small Business Act, which occurs when small businesses falsely obtain money through the CARES Act. The PPP loan was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020. The PPP loan offered businesses up to $10 million to cover payroll, mortgages, rent, and utilities for eight weeks, and the government will forgive the debt if the money goes towards these “qualified expenses.” Only businesses affected by COVID-19 and with fewer than 500 full-time employees are eligible for CARES relief.

Cheating the Small Business Administration (SBA) out of this stimulus money is a federal felony that carries potential prison time, fines, and repayment of the loan. The sentence depends on the specific offense, such as making false statements or overvaluing securities, which can result in a felony charge of $5,000 and/or 2 years in Federal Prison.

However, there are several common defenses that people facing PPP loan fraud charges can argue, such as that the defendant had no intent to defraud or that the SBA made a mistake. In some cases, defendants are not criminally liable if they accidentally provided false information, such as in the case of an applicant who inadvertently added an extra zero to their monthly payroll amount. Additionally, business owners should keep all their records, such as email communications, voicemails, bank statements, accounting notes, receipts, and bills, as they may serve as valuable proof of the defendant’s innocence if the government levies a false accusation.

It’s worth noting that most federal criminal records are unsealable, and that non-citizens convicted of CARES Act fraud are vulnerable to deportation. Therefore, aliens facing criminal charges are encouraged to consult with legal counsel as soon as possible to get the charges dismissed or reduced to a non-deportable offense.

George FernandezGeorge Fernandez
14:16 30 Apr 24
Excellent 10 out of 10, Helped resolve my case. Jeremy explained everything and made everything easy to understand.
21:33 24 Apr 24
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
Yelva Saint-PreuxYelva Saint-Preux
19:26 19 Apr 24
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Katherine SunKatherine Sun
18:08 18 Apr 24
my lawyer is Alex Zhik. Efficient, patient and professional
Nun yaNun ya
17:48 18 Apr 24
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Keisha ParrisKeisha Parris
20:45 15 Mar 24
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko BeautyTaïko Beauty
16:26 15 Mar 24
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
K MarK Mar
01:37 25 Jan 24
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.

The Paycheck Protection Program was immensely popular, but with lenders overwhelmed by applications, little regulation in place, and many businesses left out in the cold, accusations of fraud soon followed. To date, the SBA’s Office of Inspector General has issued 11 reports detailing widespread fraud and abuse in the PPP loan program. With the vulnerabilities the PPP had, it’s important for businesses to be aware of the potential dangers and the consequences of committing fraud under the PPP program.

Atlanta PPP and EIDL Loan Fraud Lawyers

As our federal criminal defense attorneys have witnessed, federal prosecutors are relentlessly pursuing criminal charges for a plethora of conduct related to the Paycheck Protection Program. Investigations and indictments often pertain to the following types of alleged misconduct:

PPP Application Fraud

The CARES Act mandated that businesses applying for PPP loans must provide accurate and truthful information on their application. The Small Business Act, 15 U.S.C. § 632, imposed various requirements for businesses to meet in order to qualify for a loan and eventually loan forgiveness. For instance, businesses had to be of a certain size and demonstrate that they had been adversely impacted by the pandemic. The funds could only be used for specific purposes. Under the act, providing false information as part of a loan application could result in an investigation or criminal charges. The federal government is particularly interested in false information relating to:

The number of employees working for the company (companies with more than 500 employees were not eligible for PPP funds)

Accurate Employee Payroll Numbers – if a company submitted an application which overstated the number of employees or the amounts that employees would make in order to get more money, then that could result in criminal charges.

Companies that categorized a number of its employees as independent contractors to qualify as eligible applicants.

Salary and Revenue Numbers for the Company and its Employees

Using someone else’s information to apply for a loan.

Fraudulent Use of the PPP Loan Funds

The Paycheck Protection Program imposed limits on the use of the funds from the PPP loans. For example, Congress required that the loans be used for the following expenses:

To pay for interest and rent under current leases.

To pay a company’s payroll expenses.

To pay insurance premiums.

To pay for utility costs.

The funds were not supposed to be used for other purposes, and the use of the funds for other purposes would result in the funds not being eligible for loan forgiveness. Therefore, if the funds were used for personal expenses or luxury items rather than legitimate business expenses, those expenditures could attract the attention of federal prosecutors in the United States Attorney’s Office or Department of Justice.

Fraud in the Loan Forgiveness Certification Process

The PPP allowed for the complete forgiveness of many of the loans provided that certain requirements were met. Providing false information in connection with a forgiveness application, however, could lead to criminal charges. Companies that sought forgiveness of the loans had to comply with the terms of the program and prove that they were in fact eligible for forgiveness. Some companies were also required to provide supporting documentation. If a borrower submitted fraudulent or inaccurate documents, attested to statements that were not true, or provided incomplete information, those submissions could attract federal attention.

In order to obtain loan forgiveness, borrowers were required to certify that:

The loan was needed due to economic uncertainty related to the pandemic.

The funds were in fact used for the intended purposes such as retaining employees or paying rent, leases, or utility bills.

The business only received one loan (or two loans for qualifying businesses) and did not receive loans from multiple lenders,

And that the documents and information submitted is in fact accurate and truthful.

Obtaining Multiple PPP Loans From Different Lenders

Finally, the PPP allowed for up to two loans for some companies. Companies that applied for more than one loan with multiple lenders for which they were not eligible could be investigated by the government and criminally charged. As the federal government has records of who received funds under the program, any business that borrowed from more than one lender should contact a criminal defense attorney immediately.

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