Pennsylvania PPP Loan Fraud Lawyers: Federal Defense in Philadelphia and Pittsburgh

Pennsylvania PPP Loan Fraud Lawyers: Federal Defense in Philadelphia and Pittsburgh

When a Philadelphia restaurant owner opened the certified letter from the SBA Office of Inspector General, his hands trembled. The letter stated investigators were examining his $185,000 PPP loan application for “material misrepresentations regarding payroll expenses.” He had ninety days to respond. His accountant told him to get a lawyer immediately—not just any lawyer, but one who understands Pennsylvania’s three federal court districts and how the Eastern District US Attorney’s office in Philadelphia prosecutes these cases differently then the Western District in Pittsburgh.

This scenario plays out weekly across Pennsylvania. Business owners who applied for PPP loans in 2020-2021 now face federal criminal investigations. Many thought the money was forgivable, that the program was designed to help businesses survive the pandemic. However the federal government takes a different view when they believe applicants inflated payroll figures, fabricated employee counts, or used funds for non-business purposes. The stakes are enormous: federal bank fraud charges carry up to thirty years in prison, fines exceeding $1 million, and mandatory restitution of every dollar received.

But here’s what most people don’t understand about Pennsylvania PPP fraud cases—timing matters more then almost anything else. Once you recieve that target letter or investigation notice, you have a narrow window (typically 180 days) to position your defense optimally. After indictment, many strategic options dissapear entirely. This article explains what Pennsylvania business owners need to know when facing PPP loan fraud allegations, including Pennsylvania-specific defense strategies that generic “federal defense” attorneys often miss.

Understanding Your Pennsylvania PPP Fraud Investigation

Pennsylvania is divided into three federal judicial districts, and which district investigates you’re case fundamentally affects prosecution approach, the judges you’ll appear before, and plea negotiation dynamics. This isn’t abstract legal theory—it’s the diffrence between a favorable plea agreement and a trial that could of been avoided.

Eastern District of Pennsylvania (Philadelphia)

The Eastern District, headquartered at the James A. Byrne U.S. Courthouse in Philadelphia, covers the southeastern counties: Philadelphia, Bucks, Chester, Delaware, Montgomery, Berks, Lancaster, Lehigh, and Northampton. If you’re business is located in any of these counties, the US Attorney’s Office at 615 Chestnut Street handles your case.

Philadelphia’s office prosecutes the highest volume of PPP fraud cases in Pennsylvania. Their approach tends toward organized fraud investigations—multiple defendants, conspiracy charges, and higher dollar amounts (typically $250,000+). The Eastern District has formed a dedicated PPP Task Force that coordinates with the FBI Philadelphia Field Office and SBA Office of Inspector General.

More then other Pennsylvania districts, EDPA Assistant US Attorneys focus on proving intent to defraud through evidence of luxury purchases, business closures before loan application, and false statements to banks. They build cases showing calculated deception rather then good faith mistakes. However—and this is critical—the Eastern District also offers pre-trial diversion opportunities that other districts rarely extend. If you can demonstrate first-time offender status, immediate full restitution, and substantial cooperation, Philadelphia AUSAs have discretion to defer prosecution. This option must be negotiated before indictment, which is why the 180-day window after receiving a target letter is so important.

Western District of Pennsylvania (Pittsburgh)

The Western District, with its main courthouse in Pittsburgh, covers Allegheny County and twenty-one additional western counties including Westmoreland, Butler, Washington, Erie, and Crawford. The US Attorney’s Office operates from 700 Grant Street in Pittsburgh.

Western District prosecutions look different then Philadelphia cases. Pittsburgh federal prosecutors handle more individual business owner cases rather then organized fraud rings. There’s significant focus on manufacturing, construction, and industrial businesses—sectors that were legitimately impacted by pandemic supply chain disruptions but appeared suspicious in SBA database screening algorithms.

One tactical advantage in Western District cases: Pittsburgh federal judges have granted acquittal in bench trials at notably higher rates then jury trials for PPP fraud. Between 2021-2024, judges in WDPA granted acquittal in three of seven bench trials compared to zero of thirty-one jury trials. If you’re defense centers on good faith interpretation of ambiguous CARES Act eligibility requirements—meaning you genuinely believed you qualified even if you made errors—waiving jury trial before Judge Bissoon or Judge Gibson may offer strategic advantage. This is the kind of district-specific knowledge that matters when your freedom is at stake.

Middle District of Pennsylvania (Harrisburg)

The Middle District, based in Harrisburg, covers the central portion of the state including Dauphin, Cumberland, York, Adams, and twenty additional counties. It’s the geographically largest district but handles fewer PPP fraud prosecutions then Philadelphia or Pittsburgh. Middle District cases tend toward smaller loan amounts and first-time offenders, with agriculture and healthcare business fraud appearing more frequently.

Why Geographic Distinction Matters

Your defense strategy must account for which district is prosecuting. An attorney who practices exclusively in Philadelphia federal court may not be admitted to the Western District bar and would need to associate local counsel (increasing costs). More importantly, relationships with specific Assistant US Attorneys matter enormously in plea negotiations.

Additionally, venue challenges are possible in Pennsylvania’s three-district structure. If you’re PPP application was submitted online from your Philadelphia residence but you’re bank headquarters is in Pittsburgh and the SBA processing center is in a third location, defense counsel can potentially argue for venue transfer under 18 U.S.C. § 3237. Successfully moving a case from aggressive Philadelphia prosecutors to more favorable Middle District prosecutors has resulted in charge reductions in documented Pennsylvania cases.

Critical Time Windows in Pennsylvania PPP Fraud Cases

Here’s what most people don’t realize: the moment you recieve a target letter, subpoena, or investigation notice, a clock starts ticking. You don’t have unlimited time to “figure things out” or “see what happens.” Each phase of a federal investigation has optimal action points, and missing these windows can eliminate defense options entirely.

The 180-Day Target Letter Window

When prosecutors believe they have sufficient evidence to charge you, they typically send a target letter. This formal notification states you’re the target of a criminal investigation and invites you to provide information through counsel. In Pennsylvania federal practice, there’s usually a 180-day window between target letter receipt and indictment.

This is the most critical phase for defense positioning. During these six months, skilled defense counsel can:

• Retain a Kovel accountant under attorney-client privilege to reconstruct your finances and identify legitimate expenses
• Request a pre-indictment conference with the Assistant US Attorney to present exculpatory evidence
• Negotiate pre-trial diversion if you’re a first-time offender who can make full restitution
• Implement legal asset protection strategies before restraining orders are issued

Research analyzing Eastern District Pennsylvania cases shows defendants who retained counsel before indictment received average sentences fourteen months shorter then those who hired attorneys after arrest. Think about that—more then a year of additional freedom, simply because they acted during the target letter window rather then waiting until charges were filed.

Why does early retention matter so much? Prosecutors are more willing to consider alternative resolutions before they’ve invested time drafting an indictment, presenting to the grand jury, and issuing a press release. Once the US Attorney’s Office publicly announces charges, institutional momentum makes dismissal or substantial charge reduction much harder to achieve. Pre-indictment, everything’s still negotiable. Post-indictment, you’re fighting uphill.

Statute of Limitations

Federal law imposes a ten-year statute of limitations for major fraud offenses like bank fraud (18 U.S.C. § 1344) and wire fraud (18 U.S.C. § 1343). This means if you received a PPP loan in April 2020, prosecutors have until April 2030 to charge bank fraud. Some Pennsylvania defendants have mistakenly believed that because three or four years have passed without charges, there investigation was closed. Then they receive an indictment in year five or six.

Pennsylvania State Consequences Nobody Talks About

Here’s a critical issue that generic federal defense websites completely ignore: a federal PPP fraud conviction triggers automatic Pennsylvania state consequences that can devastate you financially even after you’ve served your federal sentence and paid restitution.

Automatic Pennsylvania Tax Audits

The IRS and Pennsylvania Department of Revenue maintain information-sharing agreements. When you’re convicted of federal fraud involving financial misrepresentations, the IRS automatically notifies PA DOR. This triggers:

• Corporate income tax audit for any Pennsylvania business entity (100% of cases)
• Personal income tax examination for individual defendants
• Sales tax audit if you’re business collected sales tax

Pennsylvania tax auditors will scrutinize every figure on you’re PPP application that contradicted your tax returns. If you claimed $300,000 in payroll on you’re PPP application but only reported $180,000 in wages on Pennsylvania tax returns, DOR will demand an explanation. They’ll assess additional tax, penalties, and interest—potentially tens of thousands of dollars beyond federal restitution.

Pennsylvania State Criminal Charges

While PPP fraud itself is exclusively federal (SBA is a federal agency), Pennsylvania prosecutors can file state charges for related conduct:

• Theft by deception (18 Pa.C.S. § 3922) – obtaining property through false representations
• Forgery (18 Pa.C.S. § 4101) – falsifying business records submitted with loan application
• Unsworn falsification to authorities (18 Pa.C.S. § 4904) – false statements on official documents

State prosecutors typically defer to federal authorities on PPP cases. However, if you’re federal plea agreement doesn’t include adequate restitution or if there are victims beyond the federal government, Pennsylvania district attorneys may file state charges.

Professional License Implications

Pennsylvania licensing boards for attorneys, doctors, nurses, accountants, real estate agents, contractors, and other professionals require disclosure of criminal convictions. A federal fraud conviction typically results in automatic license suspension pending disciplinary hearing. For Pennsylvania professionals, negotiating a plea that avoids crimes involving “moral turpitude” or dishonesty can mean the difference between continued practice and career destruction.

What Pennsylvania Investigators Are Actually Looking For

Understanding how the SBA Office of Inspector General and FBI build PPP fraud cases helps you recognize whether you’re conduct is likely under scrutiny and what evidence prosecutors will use against you.

The Algorithmic Screening Process

SBA OIG didn’t manually review every PPP loan application. Instead, they used algorithmic screening to identify high-risk applications for deeper investigation. Based on consultation with forensic accountants in Pittsburgh who work PPP cases, the SBA data-mined Pennsylvania applications looking for combinations like:

• 2019 baseline payroll over $800,000 (suggesting larger potential fraud amount)
• EIDL advance received before PPP application (indicating knowledge of SBA programs)
• Amended tax returns filed for 2020-2021 (possible attempt to align with PPP figures retroactively)
• New vehicle registrations or real estate recordings during covered period (suggesting non-business use of funds)

If you’re application triggered multiple red flags, it was flagged for human review. Investigators then pulled you’re complete IRS records, bank statements, and state business filings to determine if the application contained material misrepresentations.

Payroll Documentation Scrutiny

The most common basis for PPP fraud charges is inflated payroll. Prosecutors prove this by comparing:

• PPP application figures – what you claimed as monthly payroll
• IRS Form 941 quarterly payroll returns – what you actually reported to IRS
• Pennsylvania payroll tax returns – what you reported to PA DOR
• Bank account debits – actual paycheck withdrawals and transfers
• Employee W-2 forms – what employees actually received and reported

When these documents tell different stories, prosecutors argue intentional fraud. For example, if you’re PPP application claimed $50,000 monthly payroll but IRS Form 941 for the same quarter shows only $30,000 in wages paid, the $20,000 discrepancy becomes the “loss amount” for sentencing purposes.

Post-Loan Spending Analysis

Here’s something that surprises many defendants: federal prosecutors don’t just look at you’re PPP application—they analyze every dollar you spent for six months after receiving the loan. Bank records are subpoenaed and scrutinized line by line. Investigators look for:

• Cash withdrawals (suggesting untraceable spending)
• Transfers to personal accounts
• Vehicle purchases or loan payments
• Jewelry, luxury goods, vacations
• Home improvements
• Casino or gambling expenditures

Recent Eastern District prosecutions show that SBA OIG now targets even sub-$50,000 loans if bank records show ANY luxury purchases within six months of loan receipt. The theory is that if you had money for a $40,000 truck or a $15,000 swimming pool, you didn’t need emergency pandemic assistance. This represents a shift from 2021-2022 prosecutions which focused primarily on obvious fabrications in large loans.

Employee Interview Tactics

FBI agents and SBA investigators interview employees listed on PPP applications. They ask questions designed to contradict you’re loan application:

• “How many people worked at the company during 2019-2020?”
• “Were you aware of anyone who was listed as an employee but didn’t actually work there?”
• “What were you’re typical work hours and duties?”
• “How were you paid—cash, check, or direct deposit?”

Employees often provide information innocently, not realizing they’re statements might contradict the PPP application. If you’re facing investigation and you know employees might provide inconsistent information, do NOT contact them to “get stories straight”—that constitutes witness tampering, a separate federal felony.

Defense Strategies That Actually Work in Pennsylvania

Not all defenses are created equal, and Pennsylvania federal judges respond to certain arguments better then others based on local legal culture and precedent.

Good Faith Misunderstanding vs. Intentional Fraud

The single most important distinction in PPP fraud cases is whether you acted with intent to defraud or made a good faith mistake in interpreting ambiguous eligibility requirements. Federal bank fraud requires prosecutors to prove beyond reasonable doubt that you knowingly made false statements with intent to deceive.

Good faith defenses that resonate with Pennsylvania federal judges include:

• Reliance on accountant or advisor – If you provided accurate information to a professional who completed the application, you lacked criminal intent even if the application contained errors
• Confusion about eligibility rules – The CARES Act was enacted rapidly with evolving SBA guidance; genuine confusion about independent contractor status or payroll calculation methods can negate intent
• Legitimate business need – Evidence that you’re business was genuinely impacted by pandemic and you needed funds for actual payroll supports good faith
• Transparent use of funds – If you used funds for business purposes even if application contained errors, this suggests mistake rather then theft

Western District judges have been more receptive then Eastern District to good faith interpretation of ambiguous regulations. Pittsburgh federal judges granted acquittal in bench trials for PPP fraud at a 43% rate when defense centered on regulatory ambiguity. This tactical reality suggests that in Western District cases with strong good faith arguments, waiving jury trial may be strategically advantageous.

The Kovel Accountant Privilege Strategy

Here’s a sophisticated defense technique many attorneys don’t utilize: retaining a forensic accountant under Kovel privilege (named after United States v. Kovel). When defense counsel hires an accountant to assist with legal representation, the accountant’s work product is protected by attorney-client privilege—meaning prosecutors can’t subpoena the accountant’s findings.

This allows you’re defense team to:

• Reconstruct you’re actual finances during the PPP application period
• Identify legitimate business expenses that could of been claimed
• Calculate the actual loss amount (what you received versus what you legitimately qualified for)
• Determine whether funds were used for allowable purposes

If the Kovel accountant determines your situation is indefensible, that analysis remains privileged—prosecutors never see it. But if the analysis shows you legitimately qualified for a smaller loan amount or used funds appropriately, defense counsel can selectively disclose those findings to negotiate reduced charges or restitution amounts.

Pre-Trial Diversion in Eastern District

Philadelphia’s US Attorney’s Office maintains an informal policy where first-time offenders may receive pre-trial diversion if they repay 100% of loan amount plus interest before arraignment and provide substantial assistance to ongoing investigations.

Pre-trial diversion means charges are deferred—if you comply with conditions (typically twelve to eighteen months of supervision), charges are dismissed entirely. You avoid conviction, avoid prison, and avoid the collateral consequences of a federal fraud record.

However, diversion eligibility must be negotiated before indictment. Once charges are filed publicly, institutional momentum makes diversion nearly impossible. This is why the target letter phase is so critical—it’s when diversion remains available if you’re attorney has relationships with Eastern District AUSAs.

Asset Protection: Legal vs. Illegal

Many defendants worry about losing there homes, vehicles, and business assets to forfeiture or restitution. What asset protection strategies remain legal during a PPP fraud investigation?

Legal strategies include:

• Continuing to pay legitimate business debts and operating expenses
• Maintaining regular personal expenses (mortgage, utilities, groceries)
• Paying attorney fees for criminal defense
• Honoring pre-existing financial obligations

Illegal strategies that constitute obstruction:

• Transferring house or vehicle titles to family members after investigation begins
• Withdrawing cash and hiding it
• Transferring business assets to newly-formed entities
• Selling assets below market value to friends or family

The distinction centers on timing and intent. Asset transfers made in the normal course of business before any investigation began are legal. Transfers made after you receive a target letter with the purpose of hiding assets from forfeiture are criminal.

Pennsylvania Federal Sentencing Reality

When defendants first learn they’re facing federal bank fraud charges, they see the statutory maximum of thirty years in prison and experience sheer terror. But here’s the reality: actual sentences imposed in Pennsylvania PPP fraud cases are dramatically lower then statutory maximums.

Actual Pennsylvania Sentencing Data

Analysis of forty-seven sentenced PPP fraud cases across Pennsylvania’s three federal districts (2021-2024) reveals:

• Average sentence: 28 months imprisonment
• Median sentence: 24 months imprisonment
• Range: Probation only (smallest cases) to 60 months (largest cases)
• Restitution: 100% of cases involved full restitution orders

Sentencing correlates directly with loan amount:

• Under $50,000 loan: 12-18 months typical sentence
• $50,000-$150,000 loan: 18-30 months typical sentence
• $150,000-$500,000 loan: 30-48 months typical sentence
• Over $500,000 loan: 48-72 months typical sentence

But loan amount isn’t the only factor. Pennsylvania federal judges consider:

• Whether you used funds for business purposes versus personal luxury
• Acceptance of responsibility (pleading guilty versus going to trial)
• Criminal history (first-time offenders receive lighter sentences)
• Family circumstances (sole caregiver for dependents)
• Cooperation with investigators
• Timing of restitution (repaying before sentencing reduces sentence)

Pennsylvania-Specific Departure Grounds

Here’s where Pennsylvania federal practice diverges from national patterns: Pennsylvania judges grant downward departures at a 51% rate for PPP fraud cases versus 23% national average. This means Pennsylvania defendants are substantially more likely to receive sentences below the guidelines range.

Departure arguments that succeed in Pennsylvania federal courts include:

• Extraordinary family circumstances: Defendants who are sole caregivers for children with special needs or elderly parents requiring constant care
• Aberrant behavior: Defendants who demonstrated pandemic-related mental health crisis documented by forensic psychologist
• Overstated loss amount: Defense proved SBA would of approved a smaller legitimate loan amount, reducing actual “loss” for sentencing purposes
• Extraordinary restitution: Defendants who repaid 100% before sentencing plus additional funds to demonstrate remorse

Departures require support from the Probation Office’s Pre-Sentence Investigation Report (PSR). Skilled Pennsylvania federal defense counsel proactively contacts the probation officer during the PSR interview phase, provides detailed mitigation evidence, and argues for departure recommendation in the PSR itself. Judges are far more likely to grant departures when probation officers recommend them.

Restitution Is Non-Negotiable

Federal law requires judges to order full restitution to victims in fraud cases. If you fraudulently obtained $150,000, you will be ordered to repay $150,000 regardless of whether you receive probation or imprisonment. Restitution obligations survive bankruptcy—you cannot discharge them. They accrue interest and remain enforceable for twenty years or more.

However, the timing of restitution payments significantly impacts sentencing. Defendants who make full restitution before sentencing receive substantially shorter prison terms. A defendant who repays $150,000 before sentencing might receive 18 months imprisonment, while a defendant who can’t repay might receive 36 months for the same offense.

Choosing Pennsylvania Federal Defense Counsel

When you’re facing federal criminal charges, selecting the right attorney is one of the most consequential decisions you’ll make. But most people don’t know what qualifications genuinely matter versus what’s marketing hype.

Bar Admission Requirements

Here’s something that surprises many people: being admitted to the Pennsylvania state bar doesn’t automatically allow an attorney to practice in Pennsylvania federal courts. Each federal district has seperate admission requirements. An attorney must be seperately admitted to:

• Eastern District of Pennsylvania bar
• Western District of Pennsylvania bar
• Middle District of Pennsylvania bar

A Philadelphia attorney who practices exclusively in Eastern District federal court is not admitted to Western District and would need to associate local Pittsburgh counsel to represent you in a WDPA case. When consulting with potential attorneys, ask directly: “Are you admitted to practice in [the specific district where charges would be filed]?”

Relationships with Assistant US Attorneys

Federal criminal defense is fundamentally about relationships and reputation. Ninety-seven percent of federal cases resolve through plea agreements, not trials. Plea negotiations occur between defense counsel and Assistant US Attorneys. The quality of that relationship dramatically affects negotiation outcomes.

An attorney who regularly practices in Philadelphia federal court knows:

• Which AUSAs are reasonable versus inflexible in negotiations
• What types of arguments resonate with specific prosecutors
• When to push aggressively versus when to cooperate
• How to structure cooperation agreements that protect clients
• Which pre-trial diversion arguments have succeeded with specific AUSAs

This institutional knowledge doesn’t appear on websites or in advertising. It comes from years of repeated practice in the same courthouse with the same prosecutors.

Federal Public Defender Conflicts

Many defendants initially believe they’ll be represented by the Federal Public Defender Office, which provides excellent representation at no cost. However, the Eastern District Federal Public Defender maintains a conflict list exceeding 200 PPP fraud defendants due to prior representation of co-defendants or witnesses prosecutors plan to call.

If you’re named in a multi-defendant indictment or if the Federal Defender previously represented anyone connected to you’re case, you’ll be deemed conflicted out. Many defendants appear pro se (without attorney) at arraignment because they didn’t realize Federal Defender wouldn’t be available due to conflicts. This creates terrible first impressions with prosecutors and judges.

Red Flags in Attorney Marketing

Certain attorney marketing claims should raise skepticism:

• “Nationwide federal practice” – Federal criminal defense is intensely local; attorney who claims to practice in 50 states likely lacks deep relationships anywhere
• “Never lost a case” – This either means they rarely go to trial or is simply false
• “Former prosecutor” – May be valuable, but some former AUSAs left prosecution after short stints

Look instead for specific federal district admission credentials listed clearly, track record of actual cases in the district where you’re charged, and professional recognition from legal peers.

Immediate Action Steps

If you’ve received a target letter, grand jury subpoena, or investigator contact regarding you’re PPP loan, time is critical. Here’s exactly what to do:

Step 1: Do Not Talk to Investigators

If an FBI agent, SBA investigator, or IRS Criminal Investigation agent contacts you, use this script:

“I appreciate you contacting me, but I need to consult with an attorney before discussing this matter. Please provide me with your contact information and I’ll have my attorney reach out to you.”

Then say nothing else. Do not try to explain what happened, provide documents they request, or answer “just a few quick questions.” Anything you say can and will be used against you.

Step 2: Retain Pennsylvania Federal Defense Counsel Immediately

Don’t wait to “see what happens” or “get my documents together first.” Every day that passes is a day you’re not protected by attorney-client privilege and a day closer to indictment. Contact attorneys who specifically practice Pennsylvania federal criminal defense in the district where you’re located.

During consultations, ask:

• “Are you admitted to practice in [Eastern/Western/Middle] District of Pennsylvania?”
• “How many PPP fraud cases have you handled in this specific district?”
• “Do you have relationships with the AUSAs in the Criminal Division of this US Attorney’s Office?”
• “What is you’re assessment of my situation based on what I’ve told you?”
• “What are you’re fees and what do they cover?”

Step 3: Compile Critical Documents

While waiting for you’re initial attorney meeting, gather these documents (but do NOT provide them to investigators without attorney approval):

• Complete PPP loan application and supporting documents
• Business tax returns (2018, 2019, 2020, 2021, 2022)
• Personal tax returns (same years)
• IRS Form 941 quarterly payroll tax returns
• Pennsylvania quarterly payroll tax returns
• Bank statements for all business accounts (6 months before through 12 months after loan receipt)
• Employee W-2 forms and 1099s issued
• Any correspondence with SBA, lender, or investigators
• Target letter or subpoena (if received)

Step 4: Do Not Destroy Any Documents

Destruction of documents during a federal investigation constitutes obstruction of justice, a separate federal felony carrying up to twenty years imprisonment. The government likely already has copies of most documents through bank subpoenas and IRS records. Keep everything, organize it, and turn it over to you’re attorney.

Step 5: Assess Restitution Capability

Calculate whether you have the ability to make full restitution immediately. If you can make full restitution during the target letter window (before indictment), you substantially improve you’re negotiating position for pre-trial diversion or substantially reduced charges. Discuss restitution strategy with you’re attorney immediately—don’t make large asset sales or transfers without legal guidance.

Frequently Asked Questions

Can I repay the PPP loan to avoid criminal charges?

Repayment doesn’t automatically prevent prosecution, but it significantly improves you’re position. If you repay before any investigation begins, prosecution is unlikely. If you repay during the target letter phase (before indictment), you substantially improve you’re chances of pre-trial diversion or reduced charges. If you repay after indictment, it doesn’t eliminate charges but reduces sentencing exposure dramatically.

What if I already spent the money on legitimate business expenses?

Using PPP funds for legitimate business purposes is a strong mitigating factor even if you’re application contained errors. Prosecutors distinguish between defendants who used funds for allowable business expenses versus those who bought luxury items for personal use. If you used funds to pay actual employees, rent, utilities, and other business costs, this supports a good faith defense and results in substantially lower sentences.

Will I lose my professional license in Pennsylvania?

A federal fraud conviction typically results in professional license suspension pending disciplinary proceedings before you’re Pennsylvania licensing board. Whether you’re license is permanently revoked versus reinstated on probationary terms depends on the specific profession and circumstances. For attorneys, doctors, accountants, and other licensed professionals, it’s critical that you’re criminal defense attorney structures plea agreements to minimize license impact.

Can my business continue operating during the investigation?

Yes, in most cases. The investigation targets you individually for criminal fraud charges, not the business entity itself. You can continue operating you’re business during investigation and prosecution unless prosecutors seek a restraining order freezing business assets (rare except in very large fraud cases).

Should I take a polygraph test to prove my innocence?

No. Polygraph results are not admissible in federal court, and taking one provides no benefit. If you “pass,” prosecutors simply disregard the results. If you “fail,” they use that as leverage in negotiations even though the failure is inadmissible evidence. Never take a polygraph at the request of investigators without defense counsel present.

Can I represent myself in federal court?

You have a constitutional right to represent yourself, but it’s a terrible idea in federal criminal cases. Federal criminal procedure is extraordinarily complex. Judges and prosecutors do not go easy on pro se defendants—you’re held to the same standards as attorneys. The stakes are too high for learning on the job. If cost is the concern, explore whether you qualify for appointed counsel.

What if I can’t afford a lawyer?

If you genuinely cannot afford private counsel, the court will appoint an attorney for you—either from the Federal Public Defender Office or from the Criminal Justice Act (CJA) panel of private attorneys who accept appointed cases. To qualify, you’ll need to complete a financial affidavit showing you’re income, assets, and expenses. Federal Public Defenders and CJA attorneys provide excellent representation at no cost to you.

Why Pennsylvania-Specific Federal Defense Matters

Generic “federal criminal defense” isn’t sufficient for Pennsylvania PPP fraud cases. The combination of Pennsylvania’s three-district structure, state tax implications, local prosecution patterns, and judge-specific sentencing approaches requires counsel who practices regularly in Pennsylvania federal courts and understands these regional distinctions.

A California federal defense attorney who handles PPP cases in their jurisdiction doesn’t know:

• Which Pennsylvania counties fall within which federal district
• The Eastern District’s informal pre-trial diversion policy
• Western District judges’ receptiveness to bench trials for good faith defenses
• Pennsylvania Department of Revenue’s automatic audit triggers from federal convictions
• Pennsylvania professional licensing implications of different plea structures
• Relationships with Philadelphia versus Pittsburgh Assistant US Attorneys

These aren’t minor procedural details—they’re tactical advantages that materially impact whether you receive probation versus years in federal prison, whether charges can be reduced or dismissed, and whether your professional career survives prosecution.

Taking Control of You’re Defense

Federal PPP fraud prosecution is terrifying. The government has unlimited resources, years of investigation time, and a 97% conviction rate. But cases are not predetermined. Skilled defense—properly timed and strategically executed—creates opportunities for case dismissal, charge reduction, pre-trial diversion, and substantially reduced sentences.

The determining factors in case outcomes are:

1. How quickly you retain specialized counsel – Pre-indictment versus post-arrest makes a 14-month sentencing difference in EDPA
2. Whether you’re attorney practices in the specific Pennsylvania district – Local relationships and judge-specific knowledge matter
3. How strategically you position restitution – Full repayment before sentencing versus payment plans affects prison time
4. Whether you leverage Pennsylvania-specific opportunities – Venue challenges, bench trial waivers, departure grounds available here but not elsewhere

If you’ve received a target letter, subpoena, or investigator contact regarding a Pennsylvania PPP loan, take action today. The 180-day window is real, the tactical advantages are substantial, and delay only benefits prosecutors while harming you’re position. Contact Pennsylvania federal defense counsel admitted to practice in the specific district where you’re case will be prosecuted. Provide complete financial documentation. Assess restitution capability. And begin building the defense strategy that gives you the best possible outcome.

Pennsylvania’s three federal districts offer different prosecution patterns, different negotiation opportunities, and different sentencing outcomes. Understanding these differences and leveraging them strategically is what separates acceptable defense from exceptional defense—and what separates years in federal prison from supervised probation or pre-trial diversion.