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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.

Delaware PPP and EIDL Loan Fraud Lawyers

As the nation continues to navigate the economic turmoil caused by the coronavirus pandemic, PPP loan fraud investigations have been on the rise. Federal prosecutors and criminal investigators from various agencies are actively searching for potential PPP loan fraud and other CARES Act violations, with the goal of recovering any funds that may have been obtained through fraudulent means.

But what exactly is PPP loan fraud? Simply put, it occurs when an individual or business submits false information in their application or certification for a loan under the federal Paycheck Protection Program. The PPP was created to provide forgivable loans to companies to help them stay afloat during the pandemic, and businesses can apply for these loans through commercial banks. However, there are strict eligibility criteria and requirements for spending the funds.

During a PPP loan fraud investigation, federal prosecutors focus on determining whether charges should be brought against someone for violating the program’s requirements. They may target businesses and individuals who have allegedly violated the PPP loan program by, for example, falsifying information in their loan application or using the funds for unauthorized purposes.

If you are concerned about possible PPP fraud charges, it’s crucial to take steps to protect yourself and your business. This includes gathering all financial records, not destroying any business records, and making sure your employees know they can report suspicions of PPP fraud without fear of retaliation.

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.

At our firm, we understand the gravity of PPP and EIDL loan fraud investigations and have a proven track record of helping business owners navigate them. Our attorneys, paralegals, and independent consultants work quickly to make sure there is no further contact with our clients and to gather and preserve relevant business documents. We also consult with forensic accountants and present any available arguments for mitigation to the government, all with the goal of minimizing any potential penalties or charges.

The Paycheck Protection Program (PPP) was a federal loan program designed to help businesses keep their workforce employed during the pandemic. Until May 31, 2021, certain businesses that met specific qualifications could apply for a PPP loan, backed by the Small Business Administration (SBA) at a low interest rate of 1%. Borrowers that met certain conditions could qualify for full loan forgiveness. But as the program came to an end, individuals in different states faced criminal charges for fraud involving the Paycheck Protection Program.

Fraudulent activities in connection with PPP loans include lying on loan applications, falsifying business or tax records, using PPP loans for unauthorized purposes, loan stacking, and concealing or misrepresenting information during a PPP audit or investigation. These activities can result in federal prosecution for identity theft, tax evasion, mail fraud, wire fraud, and bank fraud.

The federal government has made it clear that it intends to investigate and prosecute business owners and individuals who fraudulently obtained or attempted to obtain PPP funds. The U.S. Department of Justice (DOJ) has issued press releases regarding prosecution of people charged with PPP and COVID-Relief fraud.

The CARES Act, under which the program was funded, was intended to provide relief to companies and individuals affected by the COVID-19 pandemic. The Paycheck Protection Program was funded with nearly $350 billion in federal money. Participating lenders were immediately flooded with applicants, the program ran out of funds, and many companies that should have been eligible were unable to receive loans. As a result, companies that were able to receive PPP loans are currently under scrutiny by federal authorities.

Potential penalties for PPP fraud will depend on the specific charges arising from a loan fraud investigation. For example, defendants may face the following penalties upon conviction of the following charges:

  • Tax evasion: Fine of up to $100,000 for an individual or $500,000 for a corporation and up to five years in federal prison.
  • Bank fraud: Fine of up to $1 million and a federal prison sentence of 30 years.
  • Making false statements to the SBA or making false statements to an FDIC-insured bank: Fine of up to $1 million and 30 years in federal prison.
  • Making false statements to federal agents: Statutory fines and up to five years in federal prison.
  • Wire fraud: Statutory fines and up to 20 years in federal prison.
  • Aggravated identity theft: Additional penalty of up to two years imprisonment.
  • Conspiracy: Statutory fines and up to five years federal imprisonment, plus the same penalties as prescribed for the underlying offense.
  • Attempt: The same penalties as prescribed for the criminal offense that was attempted.

If you or your company is targeted for PPP fraud, it is important to retain experienced criminal defense lawyers to help mitigate the risk of substantial penalties. Federal agencies are looking back in an effort to identify companies that received PPP funds unlawfully. As the near immediate depletion of PPP funds was the subject of widespread negative publicity, the risk of prosecution is high.

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