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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.

Kentucky PPP and EIDL Loan Fraud Lawyers

PPP loan fraud is a heinous crime that occurs when unscrupulous individuals intentionally deceive the government in order to obtain funds through the CARES Act that they are not entitled to. The mere thought of someone taking advantage of a crisis to line their own pockets is reprehensible, but it is unfortunately all too common. Here are just a few examples of the types of PPP loan fraud that have been reported:

  • Falsely claiming that a company has fewer than 500 employees in order to qualify for a loan.
  • Lying about the impact of the coronavirus crisis on a business in order to qualify for a loan.
  • Inflating average monthly payroll costs in order to receive more loan money. (It’s worth noting that payroll costs are capped at $100,000 per employee.)
  • Misrepresenting that all of the loan money will be used for qualified expenses (such as payroll, rent, mortgage, and utilities) in order to have the loan forgiven.
  • Not disclosing when employees leave, thereby reducing payroll expenses, in order to receive more of the loan forgiven.

The CARES Act created the Office of the Special Inspector General for Pandemic Recovery to investigate fraud allegations, and the Department of Justice (DOJ) will prosecute any charges that are brought forward. The penalties for PPP loan fraud can be severe, with sentences depending on the specific offense. For example, making false statements or overvaluing securities is considered a felony and can result in fines of up to $5,000 and/or two years in federal prison. Embezzlement is considered a more serious offense and can result in fines of up to $10,000 and/or five years in prison. In addition, defendants will be required to pay restitution.

It’s important to note that defendants facing PPP loan fraud charges do have legal defenses available to them. They can argue that they had no intent to defraud, or that the Small Business Administration (SBA) made a mistake. For example, a business owner may have accidentally provided false information on a loan application due to the complicated nature of the application process and the stress of the crisis. Additionally, the SBA, like all bureaucracies, is not infallible and errors can occur. This is why it’s important for business owners to keep detailed records, such as email communications, voicemails, bank statements, accounting notes, receipts, and bills, which may serve as valuable proof of innocence if falsely accused by the government.

It is also worth noting that most federal criminal records are unsealable and that non-citizens convicted of CARES Act fraud are vulnerable to deportation. Aliens facing criminal charges are encouraged to consult with legal counsel as soon as possible as a criminal defense attorney may be able 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.

PPP loan fraud is a heinous crime that preys on the most vulnerable during the most dire of times. The CARES Act was designed to provide a lifeline to small businesses struggling to survive the devastating impact of the coronavirus pandemic. However, there are those who would seek to exploit this act for their own gain, committing fraud and deception to obtain funds they are not entitled to.

Five examples of PPP loan fraud include falsely claiming the company has fewer than 500 employees to qualify for the loan, falsely claiming the coronavirus crisis hurt business in order to qualify for the loan, inflating average monthly payroll costs to get more loan money, falsely claiming all the loan money is going towards qualified expenses, and not disclosing if employees leave to get more of the loan forgiven.

The Office of the Special Inspector General for Pandemic Recovery was created to investigate fraud allegations, with the Department of Justice (DOJ) responsible for prosecution. The penalties for PPP loan fraud are severe, with federal punishments including making false statements, overvaluing securities, and embezzlement. Punishments can include fines of up to $10,000 and/or prison sentences of up to 5 years, with the added requirement of paying restitution.

While the consequences of PPP loan fraud are severe, there are defenses that can be made. Defendants can argue that they had no intent to defraud or that the Small Business Administration (SBA) made a mistake. It is important for business owners to keep all records, such as email communications, voicemails, bank statements, accounting notes, receipts, and bills, as they may serve as valuable proof of innocence if falsely accused.

It’s worth noting that in most cases, federal criminal records are unsealable. Also, non-citizens convicted of CARES Act fraud are vulnerable to deportation as it is considered an aggravated felony and a crime involving moral turpitude. Therefore, it’s crucial for aliens facing criminal charges to consult with legal counsel as soon as possible to try to get the charges dismissed or reduced to a non-deportable offense.

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