Texas PPP Loan Fraud Lawyers

Texas PPP Loan Fraud Lawyers: Federal Defense Across Four Districts When COVID Relief Triggers Investigation

The federal government is prosecuting PPP loan fraud more aggressively in Texas than almost any other state in the country. Texas has something most states lack: four separate federal judicial districts, each with its own U.S. Attorney’s office, each pursuing pandemic fraud cases with different priorities and prosecution styles. Whether you applied for a PPP loan in Dallas, Houston, Tyler, or San Antonio determines which federal prosecutors will handle your case and can significantly affect your outcome.

What makes Texas prosecutions particularly dangerous is the scope of who federal agents are targeting. The Department of Justice is not just going after borrowers who submitted false applications. They are actively prosecuting the people who helped prepare those applications. The Blueacorn case in the Northern District resulted in a 10-year sentence for a woman who ran a loan assistance company. She never received a PPP loan herself. She helped others get loans with fabricated documents and received kickbacks for her services. That distinction between borrower and facilitator is critical to understanding your exposure.

If you received a PPP loan in 2020 or 2021 and something was wrong with your application, federal agents may already be building a case. The statute of limitations for bank fraud extends through 2030 for loans obtained in 2020. IRS Criminal Investigation, FBI agents, and SBA inspectors are still actively reviewing applications across all four Texas districts. Mass arrest operations have already swept up 18 people in the Eastern District and 15 people in the Southern District in coordinated takedowns.

This article explains how PPP fraud prosecutions work specifically in Texas, what sentences real defendants have received, and why having federal defense counsel who understands your particular district matters. The information here comes from actual cases prosecuted in Texas federal courts, not theoretical maximum penalties that rarely apply to first-time offenders. Understanding the difference between a wire fraud charge carrying 20 years and what defendants actually receive is essential to evaluating your situation.

Federal PPP fraud charges are serious matters requiring immediate attention. If you have been contacted by federal agents about your PPP loan or have reason to believe you are under investigation, speaking with an experienced federal criminal defense lawyer should be your first step. The decisions you make in the early stages of an investigation can dramatically affect whether prosecutors pursue charges and what those charges look like.

Understanding the Four Texas Federal Districts

Texas is divided into four federal judicial districts and this structure matters alot when your facing PPP fraud allegations. The Northern District covers Dallas, Fort Worth, Lubbock, Amarillo, and Abilene. The Southern District handles Houston, Corpus Christi, Galveston, and the Rio Grande Valley. The Eastern District covers Tyler, Beaumont, Texarkana, and Sherman. The Western District serves San Antonio, Austin, El Paso, and Waco. Each district has it’s own U.S. Attorney with there own priorities for pandemic fraud cases.

The Northern District has prosectued some of the largest PPP fraud cases in the country. Stephanie Hockridge, co-founder of Blueacorn, recieved 10 years in federal prison for a $63 million scheme. Tamara Starks of Mansfield got 86 months for submitting over 100 fradulent applications. Shantelle Hawkins of DeSoto was sentenced to 41 months for 17 false applications. This district focuses on high-dollar facilitator schemes and has shown there willing to pursue maximum sentences when the volume is high.

The Southern District in Houston has focused heavily on ring prosecutions. The $20 million fraud ring led by Amir Aqeel resulted in the ringleader recieving 15 years in federal prison. His co-conspiritors got sentences ranging from 12 months to 44 months depending on there role. Ebone Myrriah Mott faces 17 wire fraud counts for allegedly creating ficticious companies and preparing false applications for clients who paid her $200 upfront plus 10% of disbursed funds.

The Eastern District has demonstrated a “sweep” arrest strategy that should concern anyone who participated in a coordinated fraud scheme. Eighteen people were arrested simultaneously in connection with a $3.5 million fraud operation led by Michael Hill and Andrew Moran. When federal agents conduct mass arrests, everyone involved faces conspiracy charges regardless of how small there individual role might of been.

The Western District covering San Antonio and Austin has prosectued cases like the Georgetown couple who recieved a combined 32 years for $3.5 million in fraud. Tiffany Fullerton got 108 months. The funds were spent on a marijuana dispensary in Oklahoma, luxury watches, a boat, and a motor home. This district tends to focus on individual prosecutions rather then the ring takedowns seen in other districts.

What Federal Charges Apply to PPP Fraud

Federal prosecutors in Texas typically bring multiple charges against PPP fraud defendants. Wire fraud under 18 U.S.C. § 1343 is almost always included becuase loan applications were submitted electronically. This charge carrys up to 20 years in prison per count. Bank fraud under 18 U.S.C. § 1344 applys when defendants lied to financial institutons and carries up to 30 years. Making false statements to a federal agency under 18 U.S.C. § 1014 adds another potential 30 years.

Money laundering charges under 18 U.S.C. § 1956 come into play when defendants moved PPP funds in ways that concealed there origin or purpose. Transferring loan proceeds to personal accounts, using funds to purchase luxury items, or running money through fake payroll systems all trigger money laundering exposure. The Georgetown couple faced these charges after using PPP funds for there marijuana dispensary venture.

Conspiracy charges under 18 U.S.C. § 371 are particularly dangerious in Texas because prosecutors have shown a willingness to charge entire networks. If you helped others obtain fraudlent loans, prepared false documents, or recieved a cut of someone elses PPP funds, your exposed to conspiracy liability that can dramatically increase your sentencing exposure. In the Eastern District’s 18-person takedown, everyone faced conspiracy to commit wire fraud carrying 20 years.

Real Sentences in Texas PPP Cases

The sentences Texas defendants have actually received vary significantly based on the fraud amount, the defendants role, there criminal history, and wheather they cooperated with investigators. Understanding these real outcomes is more usefull then focusing on theoretical maximums that rarely apply.

At the high end, ringleaders and facilitators of large schemes have recieved severe sentences. Amir Aqeel got 15 years for leading the $20 million Houston fraud ring. Stephanie Hockridge recieved 10 years for the $63 million Blueacorn scheme. Tiffany Fullerton got 108 months (9 years) for the Georgetown couple’s $3.5 million fraud. These cases involved either very large dollar amounts, leadership roles in criminal enterprises, or both.

Volume matters significantly in Texas sentencing. Tamara Starks’ 86-month sentence was driven largely by the fact she submitted over 100 fradulent applications. Shantelle Hawkins submitted 17 applications and recieved 41 months. Defendants who submitted only one or two fradulent applications generaly recieve sentences in the 12-24 month range assuming there first-time offenders with no other aggravating factors.

Lower-level participants in fraud rings have recieved relativley shorter sentences. Jesus Acosta Perez got 12 months and one day for his role in the $20 million ring. Arham Uddin and Ammas Uddin each recieved 18 months. These defendants were following directions from the ringleader rather then organizing the scheme themselvs. There sentences reflect there lesser roles and cooperation with investigators.

The Facilitator Prosecution Pattern

One of the most important things to understand about Texas PPP prosecutions is that the DOJ is aggressivley targeting facilitators. These are people who helped others obtain fradulent loans even if they never recieved PPP money themselvs. If you prepared applications for friends, family members, or paying clients and those applications contained false information, your exposure may be greater then the actual borrowers.

The Blueacorn case illustrates this pattern. Stephanie Hockridge co-founded what was supossed to be a legitimate PPP loan assistance company in April 2020. But according to prosecutors, she and her co-conspiritors fabricated payroll records, tax documents, and bank statements to inflate loan amounts for applicants. She ran a “VIPPP” premium service that recruited agents to coach borrowers on submitting false applications. Her company charged kickbacks and earned higher fees from larger fradulent loans.

Hockridge never personally recieved a PPP loan. But she was sentenced to 10 years in federal prison and ordered to pay over $63 million in restitution. The scheme affected thousends of loans processed through her company. Prosecutors argued she was more culpable then individual borrowers becuase she enabled and profited from large-scale fraud.

In the Southern District, Ebone Myrriah Mott faces 17 wire fraud counts for allegedly operating a similar facilitator scheme. According to the indictment, she created ficticious companies, prepared falsified records, and submitted applications on behalf of clients who paid her $200 upfront plus 10 percent of disbursed funds. The 15-person indictment shows how prosecutors trace facilitator networks and charge everyone involved.

Signs Your Under Federal Investigation

Federal PPP fraud investigations often proceed quietly for months before any arrests or charges are filed. However there are warning signs that you may be under scrutiny. Knowing these signs can help you take apropriate action before the situation escalates.

The most obvious sign is direct contact from federal agents. If FBI agents, IRS Criminal Investigation agents, or SBA Office of Inspector General investigators contact you with questions about your PPP loan, you are being investigated. Do not answer there questions without a lawyer present. Politely decline to discuss the matter and contact federal defense counsel immediately.

You may also learn your under investigation through less direct means. Banks sometimes notify customers when they recieve subpoenas for account records. If your bank contacts you about producing documents related to your PPP loan, investigators are looking at your finances. Former employees, business partners, or other associates may tell you they were questioned about you or your company.

Grand jury subpoenas are a clear indication that prosecutors are building a case. If you recieve a subpoena to testify before a federal grand jury or produce documents, an indictment may be forthcoming. At this stage, having experienced federal defense counsel is absolutly essential. Your testimony before the grand jury could be used against you or result in additional charges like obstruction or making false statements.

What to Do If Federal Agents Contact You

If federal agents show up at your door or call you asking about your PPP loan, your response in that moment can significantly affect your case. Heres what you should and shouldn’t do.

Do not answer questions about your PPP loan or business finances. You have the right to remain silent under the Fifth Amendment and you should exercise that right. Agents are trained interrogators who will use anything you say as evidence. Even truthfull statements can be twisted or misremembered in ways that hurt your defense. Simply say “I’d prefer to speak with an attorney before answering any questions.”

Do not lie to federal agents. Making false statements to a federal officer is a seperate crime under 18 U.S.C. § 1001 carrying up to 5 years in prison. Many PPP fraud defendants have made there situations worse by trying to explain away there applications or claiming they didnt understand the requirements. If you talk at all, you risk either incriminating yourself on the underlying fraud or committing a new crime by lying.

Do not destroy documents. Obstruction of justice charges can be added to PPP fraud cases if prosecutors believe you destroyed evidence after learning you were under investigation. Keep all records related to your PPP application including bank statements, payroll records, tax documents, and any communications about the loan. Your attorney will need these records to prepare your defense.

Contact an experienced federal criminal defense lawyer immediatley. Time is critical in federal investigations. An attorney can sometimes negotiate with prosecutors to prevent charges from being filed or to reduce the charges you face. Early intervention is much more effective then waiting until your already indicted.

Potential Defenses to PPP Fraud Charges

Several defenses may be available depending on the specifics of your situation. An experienced federal defense attorney can evaluate which defenses apply to your case and how to present them most effectivley.

Lack of intent is the most common defense in PPP fraud cases. The government must prove you knowingly and intentionaly made false statements to obtain funds. If you genuinley believed your application was accurate based on your understanding of the program requirements, you may not have the criminal intent required for conviction. The PPP program was rolled out quickly with changing guidance, and many legitimate business owners were confused about eligablity requirements.

Mistakes in the application do not automaticaly equal fraud. If you miscalculated your payroll expenses or misunderstood how to count employees, that error might not constitute criminal fraud. The distinction between honest mistakes and intentional deception is critical. However this defense works better when you can show you made reasonable efforts to comply with program requirements.

Reliance on professional advice can be a defense if you reasonably relied on an accountant, attorney, or loan officer who told you the application was proper. This defense requires showing you disclosed accurate information to the professional and followed there advice in good faith. Its weaker if you provided false information to the professional or should of known there advice was wrong.

Cooperation and restitution can significently reduce sentences even if conviction is unavoidable. Defendants who cooperate early with investigators, provide usefull information about others involved, and make efforts to repay fradulent funds typically recieve substantially lower sentences then those who fight the charges unsuccesfully. In the $20 million Houston ring, the difference between 15 years and 12 months came down to role and cooperation.

Why District-Specific Experience Matters

Federal criminal defense in Texas requires understanding the specific district where your case will be prosectued. Each district has different prosecutors, judges, and sentencing patterns. An attorney who regularly practices in the Northern District may not have the same relationships and insights in the Southern or Eastern Districts.

Prosecutors in different districts prioritize different types of cases. The Northern District has focused on large facilitator schemes like Blueacorn. The Southern District emphasises ring prosecutions and has been agressive about charging entire networks. The Eastern District has demonstrated a preference for coordinated “sweep” arrests that take down multiple defendants simultaniously. The Western District appears to focus more on individual prosecutions.

Judges in each district have there own sentencing tendancies within the federal sentencing guidelines. Some judges regularley sentence at the low end of the guideline range while others tend toward the high end. An attorney familiar with your judge can advise you more accuratley about likely outcomes and how to present your case most effectivley.

Relationships with federal prosecutors matter in white collar cases. Defense attorneys who have worked opposite AUSA’s in your district understand there negotiating styles and priorities. This knowledge helps in plea negotiations and can sometimes result in better deals for clients. A Dallas attorney may not have the same working relationship with Houston prosecutors.

The Statute of Limitations Question

Many people who obtained PPP loans in 2020 or 2021 wonder wheather they can still be charged years later. The short answer is yes. Federal fraud charges have relativley long statutes of limitations that extend well beyond when most PPP loans were obtained.

Wire fraud has a 5-year statute of limitations. PPP loans obtained in 2020 can be charged through 2025. Loans from 2021 remain chargeable through 2026. However many PPP cases involve bank fraud charges which have a 10-year statute of limitations. This means 2020 loans remain chargeable through 2030 and 2021 loans through 2031.

The government is still actively filing new charges in 2025 for loans obtained in 2020. The Blueacorn case resulted in sentencing in November 2025 for fraud that began in April 2020. Federal prosecutors have made clear they intend to continue pursuing PPP fraud cases for years to come. The Justice Department’s Pandemic Fraud Enforcement team continues operating with substantial resources.

Do not assume your safe becuase several years have passed without contact from investigators. Many PPP fraud investigations take years to develop. Prosecutors often build cases methodically, reviewing bank records, interviewing witnesses, and connecting networks before filing charges. You may be under investigation right now without knowing it.

Taking Action to Protect Yourself

If you have concerns about your PPP loan application, taking proactive steps now is far better then waiting for federal agents to contact you. An experienced federal defense attorney can help you evaluate your situation and determine the best path forward.

Some defendants have benifited from approaching prosecutors before being charged. This is a delicate process that requires careful legal guidance. Voluntarily disclosing problems and offering to repay funds can sometimes result in civil resolution rather then criminal charges. However this approach is not right for everyone and can backfire if not handled correctly.

Whether your currently under investigation or simply worried about potential exposure, preserving documents and avoiding actions that could be seen as consciousness of guilt is important. Continue operating your business normaly. Do not make unusual transfers or purchases that could be interpretted as hiding assets. Do not discuss your PPP loan with others who might become witnesses.

Texas PPP fraud prosecutions are continuing across all four federal districts. Sentences ranging from 12 months to 15 years demonstrate the wide range of outcomes depending on fraud amount, role, and cooperation. Understanding your specific situation requires consulting with federal defense counsel who can evaluate the facts of your case and advise you on the best approach for your circumstances.