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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.

San Jose PPP and EIDL Loan Fraud Lawyers

The Paycheck Protection Program (PPP) loan fraud is a serious federal crime that occurs when small businesses, reeling from the devastating impact of COVID-19, cheat the Small Business Administration (SBA) out of stimulus money through false pretenses. The CARES Act, signed into law on March 27th, 2020, offered eligible small businesses up to $10 million in loans to cover vital expenses such as payroll, mortgages, rent, and utilities for eight weeks, with the possibility of loan forgiveness if the funds were used for “qualified expenses.”

However, not all businesses are eligible for this relief. Only those affected by COVID-19 and with fewer than 500 full-time employees can apply for these loans. And those who cheat the system by making false statements or overvaluing securities risk severe consequences. Federal punishments for PPP loan fraud include potential prison time, fines, and repayment of the loan, with embezzlement carrying even harsher penalties of up to $10,000 and/or five years in prison.

Despite these grave risks, some businesses may be tempted to fraudulently obtain PPP funds in the desperate hope of staying afloat. But the consequences of getting caught are dire. The SBA’s Office of Inspector General has issued 11 reports detailing widespread fraud and abuse in the PPP loan program, with thousands of cases referred to the Department of Justice for criminal prosecution.

However, there may be defenses available to those facing PPP loan fraud charges. A defendant may argue that they had no intent to defraud or that the SBA made a mistake. For example, a business owner may accidentally provide false information on their loan application due to the complexity of the process and stress of the current situation. It’s important 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.

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.

Furthermore, non-citizens convicted of CARES Act fraud are vulnerable to deportation, as fraud involving more than $10,000 is considered an aggravated felony and a crime involving moral turpitude. Therefore, it is crucial for aliens facing criminal charges to consult with legal counsel as soon as possible.

It’s important to note that the Paycheck Protection Program was implemented as a critical lifeline for small businesses during an unprecedented crisis. However, it’s also important to remember that fraudulently obtaining these funds not only harms the government and the integrity of the program but also undermines the efforts to help the legitimate small businesses that are struggling to survive.

As the nation continues to grapple with the devastating economic impact of the COVID-19 pandemic, small businesses have been hit especially hard. In an effort to provide crucial financial relief, the government created the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress authorized over $950 billion in forgivable loans to help small businesses maintain their workforce, have access to working capital, and keep operations running normally.

However, as the government began distributing these funds, it quickly became apparent that some parties were taking advantage of the program, fraudulently obtaining money they didn’t qualify for. In response, the government has launched an aggressive campaign to investigate and prosecute these allegations of PPP loan fraud, with entire sections of the Department of Justice dedicating themselves to these investigations.

If you find yourself facing PPP loan fraud charges, the stakes are high. Penalties for conviction can include severe fines, home detention, community confinement, restitution, supervised release, and lengthy imprisonment. For immigrants, the consequences can be even more dire, as fraud involving more than $10,000 is considered an aggravated felony and a crime involving moral turpitude, making non-citizens vulnerable to deportation.

At our law firm, we understand the gravity of the situation and are prepared to fight tirelessly on your behalf. We will gather all necessary information, including all evidence the government has against you, to review whether you have a strong defense against any allegations of fraud. We will then reach out to the federal prosecutor or agents assigned to your case and provide them with information that can make a beneficial impact on your case.

There are several acts and omissions that can result in PPP fraud allegations, including but not limited to: -Loan Application Fraud: Companies that falsely claim eligibility on loan applications could be prosecuted. This includes misrepresenting information such as the number of employees vs. contractors and presenting inaccurate payroll costs to increase the loan amount. -Loan Stacking: Loan stacking occurs when an applicant receives PPP loans from multiple lenders. Companies that receive funds from more than one lender may face PPP fraud investigations since the federal government can track the distribution of all funds from the Paycheck Protection Program. -Fraudulent Loan Certification: PPP loan applicants had to certify various facts, such as the accuracy of all business documents provided and the intention to use the money for business purposes such as payroll. Knowingly certifying an inaccurate statement can lead to fraud charges. -Using Funds for Ineligible Purposes: Companies receiving federal funds through the PPP are restricted to using those funds for specific purposes, namely payroll, mortgage interest, rent, and utilities. Any other use of PPP funds is unlawful and could result in fraud allegations. -Concealing or Misrepresenting Information During Audit: Companies that receive PPP loan funds are likely to face audits and investigations. If your company is audited or investigated, you need to be extremely careful not to reveal potentially harmful information, but you should also avoid misrepresenting facts or concealing pertinent information. Material misrepresentations, however slight, may result in additional charges such as making false statements to a federal agent.

Don’t let these charges ruin your life. Contact our law firm today and let us put our experience and knowledge to work for you. We will fight to protect your rights and your future.

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