Criminal Defense Lawyers

New Hampshire PPP Loan Fraud Lawyers: Federal Defense in Concord

New Hampshire PPP Loan Fraud Lawyers: Federal Defense in Concord

The FBI agents standing at you’re door in Manchester aren’t their by accident. Neither is that grand jury subpoena from the Warren B. Rudman U.S. Courthouse in Concord sitting on your kitchen table. Your hands are probly shaking as you read this, and your not sure weather you should call a lawyer, talk to the investigators, or just pay back the loan and hope this goes away. Here’s what you need to understand right now: the U.S. Attorney’s Office for the District of New Hampshire prosecutes PPP loan fraud cases more aggressively then most federal districts, and every decision you make in the next 24 hours will effect the rest of you’re life.

The First 24 Hours After Federal Contact: What NOT to Do

Look, the single biggest mistake PPP fraud defendants make happens before they even hire an attorney. They talk.

The FBI shows up at your buisness in Nashua, or an SBA Office of Inspector General investigator calls saying they just need to “clear up some questions about your loan,” and you think cooperating makes you look innocent. Do not talk to any federal investigator without an attorney present. Period.

Here’s the thing most people don’t realize—and I mean this is critical—those SBA-OIG investigators present themselves like their doing a routine administrative review. They use words like “verification” and “documentation discrepency” instead of “fraud” and “criminal investigation.” Your gonna think its just a paperwork issue. Its not. By the time any federal agency is contacting you directly, there already building a criminal case. The prosecutor at the U.S. Attorney’s Office in Concord has likely already seen your file.

Defense attorneys in New Hampshire report that more then 80% of they’re PPP fraud clients gave statements to investigators before hiring counsel. Every single one of those statements became Exhibit A in the goverment’s case. You can’t take them back. You can’t claim you was confused later. The prosecutor will play the recording of you explaining exactly how you calculated your payroll, how you spent the funds, weather you knew the information was inaccurate.

Here’s what happens in a typical SBA-OIG interview if you don’t have counsel:

• They ask you to “walk through” your PPP application—you provide detailed explanations that lock you into a story
• They show you documents (your bank records, tax returns, payroll reports) and ask you to explain discrepencies—you make statements that contradict you’re application
• They ask if you “meant to” put false information—you admit you knew certain numbers was inflated but explain why
• They get you to sign a sworn statement—now your admissions are under oath

Real talk: once you’ve gave that statement, your defense options shrink dramatically. You can’t claim the application was prepared by someone else. You can’t claim you didn’t understand what the questions meant. You can’t claim innocent mistake. You’ve already explained—in you’re own words, on tape—exactly what you did and why.

If you already talked to investigators without counsel, you haven’t neccessarily destroyed your case, but you’ve made it harder. An experianced federal criminal defense attorney can still negotiate, still seek cooperation credit, still argue for mitigation at sentencing. But they’re working with a more difficult fact pattern then if you had kept silent.

The right answer when the FBI or SBA-OIG contacts you: “I want to cooperate fully, but I need to consult with my attorney first. Please provide your contact information and my lawyer will reach out to schedule a time to talk.” Then you call a New Hampshire federal defense attorney immediatly. Not tomorrow. Not after you “think about it.” Today.

Why New Hampshire Prosecutes “Small” PPP Loans Other Districts Ignore

If you recieved a PPP loan under $75,000 and think your too small for federal prosecution, your wrong. This is one of the most dangerous misconceptions PPP loan recipiants in New Hampshire have, and it’s based off national articles that don’t understand how the District of New Hampshire operates.

Here’s the reality: the U.S. Attorney’s Office for the District of New Hampshire prosecutes PPP fraud cases involving loans as low as $20,000. In January 2025, a Manchester buisness owner was sentanced to 18 months in federal prison for a $127,000 PPP loan. In November 2024, a Concord defendant pleaded guilty for $85,000. These ain’t the multi-million dollar cases you see in national news. Their prosecuting regular small buisness owners and self-employed individuals with loan amounts that other federal districts ignore.

Compare this to the District of Massachusetts, which is in the same First Circuit. Massachusetts rarely prosecutes PPP fraud cases below $150,000 unless their’s aggravating factors like identity theft or organized crime connections. The Southern District of New York focuses on cases over $250,000. But New Hampshire? Different story.

Why does New Hampshire prosecute smaller amounts? According to local defense attorneys who practice in the Warren B. Rudman U.S. Courthouse in Concord, U.S. Attorney Jane Young’s office views PPP fraud as an “integrity of federal programs” issue irregardless of dollar amount. The philosophy is that fraud is fraud—weather its $50,000 or $500,000—and allowing smaller cases to go unprosecuted sends the wrong message.

This means if you inflated your 2019 payroll by $40,000 to get a bigger loan, or if you claimed 10 employees when you had 3, or if you was self-employed and added an extra $30,000 to you’re Schedule C income, you are absolutely at risk of federal prosecution in New Hampshire. Your loan amount doesn’t protect you here.

The other factor that makes New Hampshire different: it’s a small state with a close-knit federal law enforcement community. The FBI’s Manchester office, the SBA-OIG, and the U.S. Attorney’s Office in Concord work together on these cases more colaboratively then in larger districts where agencies compete for resources. When the SBA refers a case for criminal prosecution in New Hampshire, it’s more likely to be accepted and charged then in bigger, busier districts.

Bottom line: don’t assume your loan was to small to matter. In the District of New Hampshire, their prosecuting amounts that would of been considered de minimis in other jurisdictions. If you recieved PPP funds based on false or inflated information—regardless of the amount—you need to take the risk seriously and consult with a federal criminal defense attorney who practices in New Hampshire.

The Forgiveness Application Trap: Why Charges Are Coming NOW in 2025

If you recieved your PPP loan in 2020 or 2021 and you’re wondering why the goverment is investigating you now—three or four years later—the answer is probly sitting in your SBA loan portal. You applied for loan forgiveness in 2022 or 2023, didn’t you?

That forgiveness application is what triggered the investigation. And the timing of when you submitted it explains why your being contacted now in late 2024 or early 2025.

Here’s how the timeline works, and why it means your in the danger zone right now. When you applied for PPP loan forgivness, you had to submit detailed documentation: payroll records, tax filings, bank statements, receipts for how funds was spent. The SBA’s automated system and human reviewers compare what you submitted for forgivness against what you originally claimed when you applied for the loan. Any discrepencies get flagged.

For loans with significant discrepencies—like your forgivness application shows you actually had 5 employees when you claimed 15, or you’re 2019 tax returns show $60,000 in income when you claimed $120,000 on the application—the SBA refers the case to the SBA Office of Inspector General. That referral usually happens 6-12 months after you submitted the forgivness application.

Then the SBA-OIG investigates. They pull your complete loan file, subpoena your IRS records, interview your bank, maybe talk to former employees or buisness partners. That investigation takes another 8-18 months. If they conclude fraud occured, they refer the case to the FBI and the U.S. Attorney’s Office for criminal prosecution. Add another 4-8 months for the FBI to build the case and for prosecutors to decide weather to file charges.

So if you applied for forgivness in, say, May 2022, the timeline looks like this: May 2022 (application) → January 2023 (SBA flags discrepencies) → April 2024 (SBA-OIG completes investigation and refers to FBI) → November 2024 (FBI completes investigation) → February 2025 (charges filed).

That’s why cases are still being charged in 2025 for loans recieved in 2020-2021. Your not seeing “old” cases being prosecuted. Your seeing the natural investigative timeline play out. And if you applied for forgivness in late 2022 or 2023—when many borrowers finally got around to it—your in the peak charging period right now.

The SBA’s loan forgivness platform closed in May 2023, which means the last wave of applications came in spring 2023. Add 18-24 months for investigation, and that brings us to… late 2024 through mid-2025. Which is exactly when we’re seeing a surge in PPP fraud charges across New Hampshire.

But wait, didn’t the PPP program end in 2021? Isn’t their a statute of limitations? Here’s the other critical piece of the timeline: in August 2024, Congress passed and the President signed the PPP Fraud Statute of Limitations Act, extending the statute of limitations for PPP fraud from 5 years to 10 years. And it applies retroactivly to any loans not yet past the original 5-year deadline.

That means a PPP loan you recieved in April 2020 was set to hit its 5-year statute of limitations in April 2025. But the August 2024 extension pushed that deadline to April 2030. The goverment just bought itself five more years to investigate and prosecute you. Their not rushing. They have time to work through the backlog methodically.

If you applied for forgivness in 2022-2023 and haven’t been contacted yet, that doesn’t mean your in the clear. It might just mean you’re case is still working its way through the SBA-OIG investigation phase. Based off the typical timeline, you could recieve contact from investigators or see charges filed anytime in the next 12-18 months.

And if you haven’t applied for forgivness yet? That doesn’t protect you neither. The SBA can flag loans for fraud investigation based on application red flags alone—multiple loans to same person, IP address anomolies, bank account inconsistencies, loans to businesses with no payroll tax history. You don’t need to apply for forgivness to be investigated. The forgivness application just makes it easier for them to prove the fraud because you provide all the documentation that contradicts you’re original claims.

If You’re Self-Employed: The Schedule C Fraud Trap

Look, if you was self-employed and you inflated your 2019 income on your Schedule C to qualify for a bigger PPP loan, I need you to understand something. Your case is going to be harder to defend then almost any other type of PPP fraud.

Actually, let me be more direct: your case is probly indefensible at trial, and your best option is negotiating the best possible plea deal and sentencing outcome you can get.

I know that’s not what you want to hear. You might be thinking you can explain the situation, show that you’re buisness really was struggling, argue that you made an honest mistake about your income. Here’s why none of that is gonna work, and why you need to have realistic expectations about you’re situation.

When you applied for a PPP loan as a self-employed individual, you had to provide your 2019 IRS Schedule C (the form sole proprietors use to report buisness income on their personal tax returns). The PPP loan amount was calculated based off your net profit from that Schedule C. If you’re Schedule C showed $80,000 in net profit, you could get a loan of around $16,000. If it showed $150,000, you could get $30,000.

Alot of self-employed borrowers inflated that number. Some people took their actual 2019 Schedule C that showed $60,000 and changed it to $120,000 before submitting it with they’re PPP application. Others created a completly fake Schedule C that was never filed with the IRS. Some people claimed buisness income when they was actually employees with W-2 income, not self-employed at all.

Here’s the problem—and this is why Schedule C fraud is so easy for prosecutors to prove. The IRS has you’re actual filed tax return. When the SBA-OIG or FBI investigates you’re loan, literally the first thing they do is subpoena your IRS records. They pull your complete 2019 Form 1040 including the Schedule C you actually filed. Then they compare it to the Schedule C you submitted with you’re PPP application.

If the numbers don’t match, the fraud is self-evident. You don’t need forensic accountants or complex document analysis. You don’t need witness testimony or circumstantial evidence. The prosecutor just puts your actual filed Schedule C and your PPP application Schedule C side by side. One shows $60,000. The other shows $120,000. You signed both documents. Game over.

Defense attorneys who handle these cases report that Schedule C fraud prosecutions have guilty plea rates above 95%. Trials are extremly rare because the evidence is essentialy irrefutable. Its your own sworn tax filing—submitted to the IRS under penalty of perjury—contradicting the document you submitted to get federal loan funds. Juries understand that. Judges understand that. And your attorney will understand that taking this to trial is probly suicide.

The other issue with Schedule C fraud is intent. The goverment has to prove you acted “knowingly” or “willfully”—that you knew the information was false when you submitted it. When you take a tax document that says $60,000 and change it to $120,000, that’s not a mistake. That’s not confusion about the rules. That’s deliberate falsification, and any jury is gonna see it that way.

So if you’re in this situation—if you inflated your Schedule C or fabricated one—what are you’re options? Real talk: you need to focus on mitigation and damage control, not on fighting the charges. That means:

1. Early cooperation with prosecutors. If you can provide information about others who committed PPP fraud, or if you’re willing to cooperate in other investigations the U.S. Attorney’s Office is pursuing, you might get substancial credit at sentencing. Cooperation can reduce you’re sentence by 35-50% in federal cases.

2. Voluntary repayment before charges are filed. If you haven’t been charged yet but you know your under investigation, repaying the loan amount immediatly shows acceptance of responsibility and reduces the “loss amount” that drives federal sentencing guidelines. Its not gonna make the case go away, but it definately helps at sentencing.

3. Building a mitigation case for sentencing. Even if you’re going to plead guilty, your attorney can present evidence of why you did it (pandemic desperation, buisness on verge of collapse, family medical emergency), your lack of criminal history, your ties to the comunity, character references, mental health issues, and other factors that might convince the judge to sentence you below the guideline range.

4. Negotiating the charges. Even when the evidence is overwhelming, an experianced federal defense attorney can sometimes negotiate what charges the prosecutor files. Bank fraud under 18 U.S.C. § 1014 carries up to 30 years. Wire fraud under 18 U.S.C. § 1343 carries up to 20 years. In practice, PPP cases usually resolve with much lower guideline ranges, but the specific charges and enhancements matter. Your attorney might negotiate away certain enhancements that would add months or years to you’re guideline range.

Look, I know this section is harsh. You’re facing federal charges, you’re terrifyed, and you’re hoping their’s some legal defense that makes this go away. For most Schedule C fraud defendants, that defense doesn’t exist. The sooner you accept that reality and shift to damage control mode, the better you’re outcome is gonna be. An attorney who promises you they can “beat these charges” when the IRS records clearly contradict you’re application is either incompetent or their lying to get you to hire them. What you need is an attorney who understands federal sentencing, who has relationships with the prosecutors in the U.S. Attorney’s Office in Concord, and who can negotiate the best possible resolution given the evidence against you.

What Sentence Are You ACTUALLY Facing in New Hampshire Federal Court?

Lets talk about realistic sentencing expectations, because most PPP fraud defendants in New Hampshire have completely unrealistic ideas about what they’re facing—either because they’re terrified by the statutory maximum penalties they read online, or because they assume “first offense” means probation like it might in state court.

The federal statute for bank fraud—18 U.S.C. § 1014—which is the most common charge in PPP fraud cases, carries a maximum sentence of 30 years in federal prison and a $1 million fine. Wire fraud under 18 U.S.C. § 1343 carries up to 20 years. If you’re charged with both, the statutory maximum could technically be 50 years combined.

But no PPP fraud defendant in New Hampshire has ever recieved anything close to 30 years. Not even 10 years. So lets talk about what actually happens in the Warren B. Rudman U.S. Courthouse in Concord when defendants are sentanced for PPP fraud.

Federal sentencing is governed by the U.S. Sentencing Guidelines, which are advisory (not mandatory after a 2005 Supreme Court decision) but still heavily influencial. For fraud cases, the guideline calculation is based primarly on the “loss amount”—how much money was fraudulently obtained. The bigger the fraud, the higher the guideline range.

Here’s the approximate guideline ranges for different PPP loan amounts, assuming a defendant with no criminal history (Criminal History Category I):

• $20,000 – $50,000 loss: 6-12 months imprisonment (guideline range 0-6 months to 10-16 months depending on exact amount and adjustments)
• $50,000 – $150,000 loss: 12-24 months imprisonment (guideline range varies 10-16 months to 24-30 months)
• $150,000 – $500,000 loss: 24-48 months imprisonment (guideline range 30-37 months to 51-63 months)
• $500,000+ loss: 48+ months imprisonment (guideline ranges can exceed 5-6 years for multi-million dollar frauds)

These ranges assume no enhancements (like sophisticated means or role in the offense) and no departures. In practice, many defendants recieve sentences at the lower end of the guideline range or even below guidelines if they cooperate, show genuine remorse, have strong mitigation, and have no prior criminal record.

Based on actual sentencing outcomes in the District of New Hampshire for PPP fraud cases in 2023-2024, here’s what defendants have recieved:

A Manchester defendant with a $127,000 loan was sentanced to 18 months in federal prison (January 2025). A Portsmouth restaurant owner charged with $240,000 in fraudulent loans is facing 24-36 months based off the plea agreement (case pending). A Nashua contractor with $156,000 in fraud recieved 24 months plus full restitution (July 2024). These are consistant with national averages—the U.S. Sentencing Commission reports that the median sentence for federal fraud offenses in 2024 was 28 months for cases involving $100,000-$500,000 in losses.

But here’s what alot of defendants don’t understand: having no criminal record doesn’t mean you get probation in federal court. That’s a huge misconception that comes from state court experience. In New Hampshire state courts, a first-time offender charged with a non-violent property crime might get probation or a suspended sentance. Federal court doesn’t work that way.

In federal sentencing, Criminal History Category I (no prior record) is the baseline. Its not a mitigating factor—its just where you start. The sentencing guidelines fraud table drives the sentence based on loss amount. For a $95,000 PPP fraud (around the median for New Hampshire cases), the guideline range for a Category I defendant is aproximately 12-18 months. That’s prison time, not probation.

Federal probation as a sentence is only available when the guideline range is 0-6 months, which for fraud typically requires a loss amount under $6,500. Since PPP loans started at $1,000 and most prosecuted cases involve loans of $20,000 or more, probation-only sentences are extremly rare in PPP fraud prosecutions.

However, judges in the District of New Hampshire have shown willingness to sentence below the guideline range when defendants present strong mitigation. Factors that can lead to below-guideline sentences include:

Substantial cooperation with the goverment (providing information about other fraud schemes or defendants)—this can reduce sentences by 35-50% or more. Genuine acceptance of responsibility, including early guilty plea and full restitution paid before sentencing. Evidence that the defendant was in severe financial distress due to the pandemic and the fraud was motivated by desperation rather then greed. Strong family ties and community support, especialy if defendant is primary caregiver for children or elderly parents. Mental health or medical issues that contributed to the conduct or that make imprisonment particularly difficult. Spending the loan funds on legitimate buisness expenses (even if obtained fraudulently) rather then personal luxuries.

Conversely, factors that can lead to sentences at the high end of guidelines or even above include: spending loan funds on personal luxuries (cars, jewelry, vacations, gambling). Sophisticated fraud involving falsified tax documents, fake employee records, or multiple loan applications through different banks. Refusing to cooperate with investigators or continuing to deny responsibility after overwhelming evidence. Prior criminal history, especialy fraud or dishonesty offenses. Obstruction of justice (destroying records, lying to investigators, tampering with witnesses).

The U.S. District Judges who handle criminal cases in New Hampshire are Judge Joseph Laplante (Chief Judge) and Judge Samantha Elliott (appointed in 2022). Local defense attorneys report that both judges take white-collar fraud seriously but are willing to consider individual circumstances. Judge Laplante has been on the bench since 2014 and has handled numerous fraud cases; he’s known for carefully considering mitigation but also for imposing tough sentences when defendants show lack of remorse. Judge Elliott, being newer to the bench, has less of a track record, but early indications are that she follows guidelines fairly closely while being open to departures for strong mitigation.

Bottom line on sentencing: if you’re facing a PPP fraud charge in New Hampshire for a loan between $50,000 and $200,000, and you have no criminal record, your realistic sentence range is probly 12-30 months in federal prison, depending on how much cooperation and mitigation you can present. Thats if you plead guilty early and work with your attorney to build the strongest possible sentencing case. If you go to trial and lose, expect the sentence to be at the high end or above the guideline range, because you won’t get the 3-level reduction for acceptance of responsibility that guilty pleas recieve.

Home confinement is possible for shorter sentences (under 12 months) or as part of a split sentence where you serve some time in prison followed by home confinement. But don’t count on avoiding incarceration entirely if you’re guideline range is in the imprisonment zone.

Professional License Holders: Hidden Consequences Beyond Prison

If you hold a professional liscense in New Hampshire—real estate broker, insurance producer, CPA, contractor, nurse, or any of dozens of other ocupations regulated by the state—a federal PPP fraud conviction doesn’t just mean prison time and restitution. It means you’re probly going to lose your career.

Most PPP fraud defendants don’t realize this untill after they’ve already pleaded guilty. They focus on the criminal sentance, they negotiate the best deal they can, they prepare for prison or home confinement, and then a few months after sentancing they get a letter from the New Hampshire Office of Professional Licensure and Certification notifying them that they’re liscense has been suspended or revoked due to the federal felony conviction.

Here’s what alot of defense attorneys don’t tell clients upfront: many New Hampshire professional liscensing statutes contain automatic or mandatory suspension/revocation provisions for felony convictions, especialy felonies involving fraud, dishonesty, or breach of trust. PPP fraud convictions check all those boxes.

For example, New Hampshire RSA 331-A:8 governs real estate brokers and salespersons. It gives the Real Estate Commission authority to suspend or revoke a liscense if the liscensee “has been convicted of a felony or any crime involving fraud, misrepresentation, or deceit.” A federal bank fraud conviction for PPP fraud clearly qualifies. The Commission doesn’t have to suspend or revoke—they have discretion—but in practice, they almost always do for federal fraud convictions.

Similar provisions exist for insurance producers (RSA 402-J:12), accountants and CPAs (RSA 309-B:9), contractors (RSA 319:31), and numerous other liscensed professions. Even professions you wouldn’t expect: nursing liscenses, pharmacy liscenses, veterinary liscenses. Any liscense issued by the state can be subject to disciplinary action based on a federal felony conviction.

The timing of the liscense action usually goes like this: you’re convicted (or plead guilty), sentanced, and begin serving your sentence. The criminal conviction becomes a matter of public record. The liscensing board either learns about it through media coverage, routine background checks, or because you’re required to self-report convictions within a certain timeframe. The board opens a disciplinary proceeding. You recieve notice and have an oportunity to respond, sometimes including a hearing. The board issues a decision—typically suspension during the pendency of the criminal case, followed by revocation or lengthy suspension after sentancing.

In some cases, you can petition for reinstatement after a period of years, but reinstatement is never garanteed and often requires showing rehabilitation, completion of additional education or training, and other burdensome requirements. For many professionals, a federal fraud conviction effectively ends they’re career in that field permanently.

This matters enormously for you’re strategic decisions about how to handle the criminal case. If you’re a real estate broker in Portsmouth earning $200,000 a year, and a PPP fraud conviction means you lose your liscense and your livelihood permanently, you might decide to take the case to trial even if the odds of winning are low. Because pleading guilty to save 6 months of prison time doesn’t help you if you lose you’re career either way.

On the other hand, if you’re liscense isn’t at risk, taking a plea deal that minimizes prison time might be the obvious choice. This is why its critical to consult with an attorney who understands both the federal criminal process AND the New Hampshire liscensing implications of a conviction. Alot of criminal defense lawyers focus solely on the criminal case and don’t think through the collateral consequences untill its to late.

Questions to ask you’re attorney if you hold a professional liscense:

What does my liscensing statute say about felony convictions? Is suspension/revocation mandatory or discretionary for the board? Have their been cases where the board allowed someone to keep they’re liscense after a federal fraud conviction? If I plead guilty to a reduced charge (like a misdemeanor), does that avoid the liscensing consequences? Can I negotiate a plea agreement that preserves my liscense? What’s the timing of the liscensing action relative to my criminal sentance?

In some cases, your attorney might be able to negotiate a plea to a misdemeanor offense that doesn’t trigger the liscensing statute. Federal prosecutors are sometimes willing to do this for defendants with minimal criminal conduct, strong mitigation, and substantial cooperation. But you have to ask for it—and you have to have leverage to negotiate it.

The worst-case scenario is pleading guilty to a felony, serving your sentance, and then discovering months later that you’ve lost the liscense that was your only source of income. Now you have a federal fraud conviction on your record, no liscense to practice you’re profession, and limited employment options going forward. That’s a life-altering outcome that goes way beyond the prison sentance.

Multiple Loans, Multiple Banks: How You Made Your Case WORSE

Some PPP fraud defendants thought they was being smart. Instead of applying for one large loan that might attract scrutiny, they applied for multiple smaller loans through different lenders. Maybe you applied for $40,000 through Bank of America, then $35,000 through Chase, then another $50,000 through a online lender. You figured spreading the applications across different banks made it less likely any one bank would catch the fraud.

That strategy didn’t just fail. It made you’re case substancially worse, and its probly going to add 6-12 months to you’re prison sentance.

Here’s why. The U.S. Sentencing Guidelines include an enhancement for “sophisticated means” under U.S.S.G. § 2B1.1(b)(10)(C). This enhancement adds 2 levels to you’re offense level, which translates to aproximately 4-8 months of additional prison time for most defendants (the exact impact depends on where you are in the guideline table and your criminal history category).

Federal prosecutors argue—and judges consistantly agree—that applying for multiple PPP loans through different lenders demonstrates “sophisticated means.” The reasoning is that you wasn’t just making a mistake or exaggerating on a single application. You was engaging in a deliberate scheme. You was hiding your conduct by spreading it across multiple institutions. You was demonstrating planning and premeditation.

In the District of New Hampshire, prosecutors seek the sophisticated means enhancement in virtually every case involving multiple loan applications. And they usually get it. Defense attorneys can argue that the applications wasn’t really that sophisticated—you just filled out the same forms multiple times—but judges are skeptical. The fact that you knew to apply through different lenders to avoid detection shows a level of planning that supports the enhancement.

The enhancement also applies if you used other “sophisticated” techniques: creating fake tax documents using software, setting up shell companies to apply for loans, using stolen identities or business EINs, routing funds through multiple bank accounts to conceal how you spent them. All of these elevate the case from “desperate business owner who fudged the numbers” to “calculated fraudster who planned this out.”

Here’s the irony: defendants who applied for one $125,000 loan by inflating their payroll often face less sentancing exposure then defendants who applied for three seperate $50,000 loans (same total fraud amount) because the single-loan defendant doesn’t get the sophisticated means enhancement. The loss amount is the same, but the sentance isn’t.

If you applied for multiple loans, your attorney needs to be prepared to argue against the sophisticated means enhancement at sentancing. Possible arguments include: the applications wasn’t sophisticated—you used the same false information each time without trying to hide it; you wasn’t trying to evade detection—you didn’t realize multiple applications was problematic; the applications was close in time and part of a single course of conduct, not seperate schemes.

These arguments sometimes work, but they’re an uphill battle. The better strategy is to use the sophisticated means issue as leverage in plea negotiations. Your attorney might argue to the prosecutor: “Look, if we go to trial and lose, the judge is gonna apply the sophisticated means enhancement, multiple victim enhancement, and every other enhancement you ask for. If we plead guilty now and my client cooperates, we want you to agree not to seek certain enhancements.” Sometimes prosecutors will agree to cap the enhancements in exchange for an early plea and cooperation.

Bottom line: if you applied for multiple PPP loans, don’t expect sympathy for being “extra desperate” or “extra struggling.” The goverment is gonna argue you was extra calculating, and that’s gonna cost you extra months in prison. Make sure you’re attorney addresses this in plea negotiations and at sentancing.

Your Three Options: Fight, Cooperate, or Negotiate

Once you’ve been charged with PPP fraud—or once you know charges are imminent—you have three basic strategic options. Which one makes sense for you depends on the strength of the evidence, what you can offer prosecutors, and what you’re goals are.

Option 1: Fight the charges at trial. This makes sense if: the evidence against you is weak or circumstantial; the goverment can’t prove you acted “knowingly” or “willfully”; their are serious legal issues with how evidence was obtained; you genuinely didn’t commit fraud and can prove it; the stakes are so high (professional liscense, deportation risk, etc.) that you have nothing to lose by going to trial.

Federal trial in the District of New Hampshire means a jury trial before a U.S. District Judge in the Warren B. Rudman U.S. Courthouse in Concord. The U.S. Attorney’s Office has a conviction rate above 90% in cases that go to trial, so your odds aren’t great if the evidence is strong. If you lose at trial, you won’t get the 3-level sentancing reduction for “acceptance of responsibility” that guilty pleas recieve, which typically adds 6-12 months to you’re sentence. You’ll also have spent tens of thousands of dollars more in legal fees then if you had pleaded guilty.

But if you’re innocent, or if the goverment’s case has real weaknesses, trial might be you’re best option. An experianced federal trial attorney can challenge the evidence, cross-examine goverment witnesses, present exculpatory documents, and argue that the goverment hasn’t proven its case beyond a reasonable doubt.

Option 2: Cooperate with the goverment. This makes sense if: you have information about other people who committed PPP fraud; you’re willing to testify against co-defendants or other targets; you can provide information about other criminal activity the U.S. Attorney’s Office is investigating; you’re early in the investigation (before charges are filed) and can provide substantial assistance.

Cooperation means meeting with prosecutors and FBI agents, providing truthful information, turning over documents, and potentially testifying at trials or before grand juries. In exchange, you get a cooperation agreement—usually called a “5K1.1 agreement” after the sentancing guideline section that allows downward departures for substantial assistance.

Cooperation credit can be enormous. Defendants who provide substantial assistance sometimes recieve sentances 50-70% below the guideline range. In rare cases, cooperating defendants avoid prison entirely and get probation or home confinement. But cooperation is risky. You have to tell the complete truth—if you’re caught lying or minimizing your role, the cooperation agreement is void and you’ll be sentenced as if you never cooperated. You might have to testify against freinds, family members, or buisness partners. And you’ll be labeled a “snitch,” which can have consequences in prison if you’re incarcerated.

The earlier you cooperate, the more valuable you are to prosecutors. If you come forward before charges are filed and help them build cases against others, you have maximum leverage. If you wait untill after you’re indicted and convicted, your cooperation is worth less.

Option 3: Negotiate a plea agreement without cooperation. This makes sense if: the evidence against you is strong and trial isn’t realistic; you don’t have information to trade for cooperation credit; you want to resolve the case quickly and minimize legal fees and stress; you want to control the outcome rather then risk trial.

Most federal PPP fraud cases resolve through plea agreements. You plead guilty to one or more charges, and in exchange the prosecutor agrees to dismiss other charges, recommend a specific sentance or sentance range, or agree not to seek certain enhancements. You still go through a sentancing hearing where the judge hears from both sides and decides your sentance, but the plea agreement gives you more certainty then going to trial.

Even without cooperation, you can negotiate. Your attorney might get the prosecutor to agree to: charge you with wire fraud (20-year maximum) instead of bank fraud (30-year maximum); dismiss money laundering charges that would add mandatory minimums; agree not to seek sophisticated means or other enhancements; recommend a sentance at the low end of the guideline range; allow you to self-surrender to prison rather then being taken into custody immediatly.

The key to successful plea negotiations is having an attorney with relationships in the U.S. Attorney’s Office in Concord, a track record of federal cases, and credibility with prosecutors. If you’re attorney can present you’re case persuasively—highlighting mitigation, explaining the circumstances, showing genuine remorse—the prosecutor might be willing to give you a better deal then they would offer someone else with the same charges.

One issue that comes up in PPP fraud cases is the distinction between criminal restitution and SBA civil clawback. If you recieved a fraudulent PPP loan, the SBA might demand repayment through its civil enforcement process seperate from any criminal case. If you repay the SBA civilly, that repayment is credited against any criminal restitution order you later recieve. But repaying the SBA doesn’t make the criminal case go away.

Some defendants ask: “If I pay the money back before I’m charged, will they drop the case?” The answer is usually no. Repayment is excellent mitigation and will definitely help at sentancing, but federal prosecutors don’t dismiss fraud cases just because the defendant repaid. Fraud is a crime against the integrity of federal programs, not just a debt. However, early voluntary repayment before charges are filed can sometimes convince prosecutors to decline prosecution altogether, especialy in smaller cases with strong mitigation. Its worth exploring with you’re attorney.

What Happens in the Next 7 Days

If you’re reading this because you just got contacted by the FBI, recieved a grand jury subpoena, or saw news coverage about PPP fraud prosecutions in New Hampshire and you’re worried about you’re own loan, here’s what you need to do in the next 7 days—actually, in the next 24 hours.

Do not talk to any federal investigator without an attorney present. We covered this at the begining of this article, but its worth repeating because its the single most important decision you’ll make. Politely decline to answer questions. Ask for the investigator’s contact information. Tell them you want to cooperate but need to consult with counsel first. Then call an attorney immediatly.

Contact a federal criminal defense attorney who practices in New Hampshire. Not just any criminal lawyer—you need someone who handles federal cases, who practices in the Warren B. Rudman U.S. Courthouse in Concord, who knows the prosecutors in the U.S. Attorney’s Office, and who understands the federal sentancing guidelines. Many excellent state court criminal defense lawyers have never handled a federal case. This isn’t the time to learn.

Gather you’re PPP loan documents. Find your original loan application, any supporting documents you submitted (tax returns, payroll records, bank statements), correspondence with the lender, records of how you spent the loan funds, and you’re loan forgivness application if you submitted one. Your attorney will need all of this to assess the strength of the goverment’s case and your options.

Do not destroy any documents or delete any records. Even if you think certain documents are incriminating, destroying evidence is obstruction of justice and will make you’re case dramaticaly worse. Its a seperate federal crime that carries its own prison time. Don’t delete emails, don’t shred bank statements, don’t alter tax returns. If you’ve already destroyed documents, tell you’re attorney immediatly so they can advise you on damage control.

Do not discuss the case with anyone except you’re attorney. Don’t talk to your spouse, buisness partners, employees, freinds, or family about the details of you’re PPP application or what you did. Those conversations aren’t privileged and those people can be subpoenaed to testify against you. The only person you can talk to freely is you’re attorney—those conversations are protected by attorney-client privilege.

Don’t panic, but don’t delay. Federal criminal cases move slowly once charges are filed, but the window for proactive defense work before charges is short. If you’re under investigation but not yet charged, you have oportunities to influence the outcome—possibly even preventing charges from being filed. But that window closes once the U.S. Attorney’s Office makes a charging decision. Act now.

The U.S. Attorney’s Office for the District of New Hampshire is located at 53 Pleasant Street in Concord, NH 03301. The federal courthouse is at 55 Pleasant Street, two blocks away. If you’ve been charged, you’ll be arraigned before a U.S. Magistrate Judge, probly in Concord. If you’re case goes to trial or sentancing, it will be before a U.S. District Judge in the same courthouse.

PPP loan fraud is a federal crime with serious consequences—prison time, restitution, professional liscense loss, and a permanent federal felony conviction on your record. But it’s not hopeless. With experianced federal defense counsel, early intervention, and a strategic approach, you can minimize the damage and move forward with you’re life. Don’t face this alone. Don’t wait. Call a New Hampshire federal criminal defense attorney today and start protecting you’re future.