Criminal Defense Lawyers

Washington PPP Loan Fraud Lawyers

Washington state has two federal districts with completely different approaches to PPP fraud prosecution. The Western District in Seattle has prosecuted tech executives and massive fraud rings stealing millions. The Eastern District in Spokane launched a dedicated COVID-19 Fraud Strike Force that fast-tracks cases. Both are actively investigating and charging people right now.

If you received a PPP or EIDL loan and you’re worried about whether the government is looking at you, this article will tell you exactly what Washington defendants have faced. Real sentences from real cases. The range is dramatic: participants in fraud schemes have received 1-2 years, while organizers have received over 16 years in federal prison.

Here’s what nobody else will tell you: whether you get 12 months or 16 years depends on your role in the fraud. Running a scheme that helps others commit fraud gets you sentenced as an organizer. Following someone else’s instructions might get you sentenced as a minor participant. Understanding this distinction could be the difference between seeing your family again in a year or in a decade.

What Federal Charges Can You Face for PPP Fraud in Washington?

OK so heres the thing about PPP loan fraud in Washington. The government isnt using some special pandemic law. There charging you under federal fraud statutes that have existed for decades, and there stacking multiple charges to maximize your exposure.

The most common charge is wire fraud under 18 USC 1343. You submitted your application electronically, so you used interstate wires. Thats enough for wire fraud. Maximum penalty is 20 years, but it jumps to 30 years if the fraud affected a financial institution. Since every PPP loan went through a bank, prosecutors gonna argue for the 30-year maximum.

Bank fraud under 18 USC 1344 is another major charge. Your facing up to 30 years and a $1 million fine. Mukund Mohan, a tech executive from Clyde Hill, got hit with both wire fraud AND money laundering for his $1.8 million scheme.

Money laundering under 18 USC 1956 gets added when you moved the money after recieving it. Paradise Williams spent her fraud proceeds on luxury cars, cosmetic surgery, jewelry, and designer goods. That spending pattern became evidence of money laundering on top of the wire fraud charges.

False statements charges under 18 USC 1014 carry up to 30 years. If you lied about payroll, employees, revenue, or how youd use the funds, this charge is basicly guarenteed.

And if you helped others commit fraud? Conspiracy charges under 18 USC 371. Tyler Andrews charged people 10% fees to help them submit fraudulent applications. That made him a conspiracy leader, which is why he got 16 years instead of 2.

What Washington PPP Fraud Sentences Actually Look Like

Heres were we get into what competitors wont tell you. Forget the 30-year maximums for a second. What are judges in Washington actualy handing down?

Paradise Williams from Seattle ran the biggest fraud ring weve seen in Washington. She submitted over 125 fraudulent applications between June 2020 and February 2022. She recruited more than 50 associates to pose as fake tenants, landlords, and business owners. The scheme sought $6.8 million and actualy stole $3.3 million. Williams personaly got $2 million plus another $1.2 million in kickbacks from her associates. Her sentence? 5 years in federal prison, plus $2.79 million in restitution to Treasury and $512,730 to the SBA. Her co-defendants got 3 years (Jackson) and 18 months (Robinson).

Tyler Keith Andrews got the harshest sentence weve seen in Washington: 196 months, which is over 16 years. His fraud was massive, $16.3 million total, but what really hurt him was his role. He charged people 10% fees to help them submit fraudulent applications. He wasnt just commiting fraud himself. He was running a fraud-for-hire business. The judge saw him as the ringleader, and the sentence reflected that.

Mukund Mohan from Clyde Hill was a tech executive who sought $5.5 million through 8 fraudulent applications. He got about $1.8 million before getting caught. His sentence? 2 years in prison plus a $100,000 fine and $1.78 million in restitution. He created fake tax filings and bought a shell company with no employees, then claimed it had dozens of workers and millions in payroll.

Austin Hsu from Issaquah submitted 9 fraudulent applications. Six were approved, netting him over $700,000. His sentence? 2 years plus $25,000 fine and $709,000 in restitution. Similar to Mohan but smaller scale.

Antonio Crawford from Mead submitted false applications in his own name and on behalf of others, totaling over $750,000. His sentence? 45 months, which is almost 4 years. The “on behalf of others” part pushed his sentence higher.

Marisa Beck from Spokane got 12 months for $368,000 in fraud involving 3 businesses with false payroll and revenue information. She was a participant, not an organizer, and her cooperation helped.

The pattern is clear: organizers and people who help others commit fraud get years or decades. Participants who cooperate can get 1-2 years. Your role matters more than the dollar amount.

The COVID-19 Fraud Strike Force in Eastern Washington

Heres something most articles wont mention. The Eastern District of Washington launched a dedicated COVID-19 Fraud Strike Force specifically to fast-track pandemic fraud prosecutions. This isnt just regular enforcement. Its a targeted task force with resources specifically allocated to catching PPP and EIDL fraudsters.

U.S. Attorney Vanessa Waldref has made pandemic fraud a priority. Her office released a statement highlighting there 2024 prosecutions, naming specific defendants and emphasizing that “fraudsters saw these programs as an opportunity to enrich themselves, and when funds ran out, eligible businesses were denied critical funding.”

The Strike Force approach means faster investigations and faster charges. Cases that might take 2-3 years in other districts are moving through Eastern Washington more quickly. If your in Spokane, Yakima, the Tri-Cities, or anywhere in eastern Washington, your facing a prosecution system thats been specifically designed to catch you.

The Western District in Seattle doesnt have a formal Strike Force, but U.S. Attorney Tessa Gorman has been equally aggresive. Her office prosecuted Paradise Williams and called her “relentless in her efforts to steal pandemic benefits throughout the entire duration of our national emergency.”

Western District vs Eastern District: Where Your Case Goes Matters

Washington has two federal judicial districts, and which one handles your case affects your strategy.

The Western District of Washington covers Seattle, Tacoma, Bellevue, Olympia, and everything west of the Cascades. This is were the big cases have been prosecuted. Paradise Williams ($6.8 million scheme), Mukund Mohan (tech executive), Austin Hsu (multiple applications). The Western District sees more sophisticated fraud because Seattle has more tech companies and higher-dollar businesses.

The Eastern District of Washington covers Spokane, Yakima, Richland, and everything east of the Cascades. This is were the Strike Force operates. Cases like Antonio Crawford, Marisa Beck, and Nathan Triano were prosecuted here. The amounts tend to be smaller but prosecution is faster.

The county were you submitted the fraudulent application determines which district handles your case. If you applied from King County or Pierce County, your going to Seattle. If you applied from Spokane County or Yakima County, your going to the Eastern District and there Strike Force.

How Federal Prosecutors Build PPP Fraud Cases

Understanding how they catch people helps you understand your own exposure. Heres what investigators look for:

First, they compare your PPP application to your tax returns. Mukund Mohan got caught because he claimed his shell company had “dozens of employees” and “millions in payroll taxes” when the IRS had no record of any tax filings from that company. The SBA and IRS share data. Discrepancies get flagged automaticly.

Second, bank records show were the money went. Paradise Williams spent her fraud proceeds on luxury cars, cosmetic surgery, jewelry, and designer goods. That spending pattern was obvious evidence that the money didnt go to business expenses.

Third, they trace kickback payments. Williams recieved $1.2 million in kickbacks from associates she helped commit fraud. Those payments were trackable through bank records and became evidence of the conspiracy.

Fourth, your co-conspirators talk. When someone in a fraud ring gets caught, they often cooperate against everyone else to reduce there own sentence. Williams’ co-defendants pleaded guilty and presumably provided information about the scheme.

Never assume the government doesn’t know. The Strike Force in Eastern Washington is specifically designed to find PPP fraud. They have your application, your tax records, and your bank records.

Defense Strategies That Actually Work

OK so your facing an investigation or charges. What can actualy help you?

The biggest defense is lack of intent. The government has to prove you KNEW your statements were false and you INTENDED to defraud. If you genuinley believed your payroll numbers were accurate, if you relied on records your accountant gave you, if you followed what you thought the rules were, thats a defense.

The PPP program was confusing. Rules changed constantly. SBA guidance was contradictory. Alot of people made honest mistakes about wheather there business qualified or how to calculate payroll. Honest confusion isnt fraud.

Good faith reliance on professionals matters too. If your CPA prepared the application, if a loan officer told you what numbers to use, if you followed advice from someone you reasonably trusted, the government has to show you knew there advice was wrong.

Voluntary repayment before charges can dramaticly change outcomes. If your under investigation but not charged yet, returning the money can affect wheather prosecutors even bring charges. It also affects sentencing if charges do come.

Challenging your role in the offense is critical in Washington cases. The difference between being an organizer (16 years for Andrews) and a participant (12 months for Beck) is enormous. If you were following someone elses instructions, if you didnt understand the full scope of the scheme, your lawyer needs to make that clear.

Can You Still Be Prosecuted for a 2020 PPP Loan?

Yes. Absolutley yes. The statute of limitations is longer than most people realize.

In 2022, Congress passed the PPP and Bank Fraud Enforcement Harmonization Act, extending the statute of limitations to 10 years for PPP fraud. Applications from 2020 can be prosecuted through 2030.

And the clock starts when you made your last false statement, not when you got the loan. If you submitted a forgivness application with false information in 2021, the clock starts then. Every false statement to the SBA resets your exposure window.

Tyler Andrews committed his fraud between June 2020 and May 2022. He wasnt sentenced until December 2024, over two years after his last fraudulent act. The government has time on there side.

What to Do If Federal Agents Contact You

Do not talk to federal agents without an attorney present. Period.

FBI agents, SBA investigators, IRS Criminal Investigation, whoever shows up, your not required to speak with them. You have a Fifth Amendment right to remain silent. Use it.

Be polite. Take there card. Say you need to speak with a lawyer first. Thats it.

Heres why this matters: agents are trained to make conversations seem casual. They might say there “just trying to clear things up” or “help you get ahead of this.” There not there to help you. There building a case.

Making false statements to federal agents is itself a crime under 18 USC 1001, punishable by up to 5 years. If you talk to agents and say something incorrect, even by accident, you could face additional charges on top of the fraud.

If you recieve a grand jury subpoena for documents, you generaly have to comply. But you dont have to testify without immunity. A federal criminal defense lawyer can negotiate the terms of your cooperation.

If you get a target letter, thats the government telling you your the focus of the investigation and an indictment is likely. This is emergency territory. You need a lawyer immediatly.

Three Mistakes That Get Washington Defendants Extra Prison Time

Mistake #1: Helping others commit fraud. Tyler Andrews didnt just commit fraud for himself. He charged people 10% fees to help them submit fraudulent applications. That made him a ringleader and got him 16 years instead of 2-3. If anyone paid you to help them get a PPP loan, your exposure just multiplied.

Mistake #2: Spending fraud proceeds on obvious luxury items. Paradise Williams bought luxury cars, got cosmetic surgery, purchased jewelry and designer goods. Every one of those purchases became evidence. If youd spent the money on actualy business expenses, there would be less evidence of intent to defraud.

Mistake #3: Submitting multiple fraudulent applications. Austin Hsu submitted 9 applications. Mukund Mohan submitted 8. Multiple applications show a pattern of fraud rather than a single mistake. Each application is potentialy a seperate count, and the totals get aggregated for sentencing purposes.

Why You Need a Federal Criminal Defense Lawyer

PPP fraud is federal. The loans came from the Small Business Administration. Prosecutions happen in federal court under federal rules with federal judges who follow federal sentencing guidelines.

State criminal defense attorneys might not know federal discovery rules, federal sentencing guidelines, or how to negotiate with Assistant U.S. Attorneys in Seattle or Spokane. Federal court is a completley different system. The conviction rate exceeds 90%.

You need someone who knows the judges in both the Western and Eastern Districts of Washington. Who has relationships with the prosecutors in those offices. Who understands how the Strike Force operates in Eastern Washington. Who knows how to present mitigation at sentencing and argue for the lowest possible guideline range.

The sentencing guidelines are complicated. Your sentence depends on loss amount, your criminal history, wheather you had a leadership role, wheather the offense involved sophisticated means, and dozens of other factors. The difference between being classified as an organizer versus a participant can be a decade of prison time.

Marisa Beck got 12 months. Tyler Andrews got 196 months. The difference wasnt just the amount. It was how there roles were characterized and how there cases were handled from the beginning.

If your facing PPP fraud allegations in Washington, your facing potential prison time, hundreds of thousands or millions in restitution, and a felony record that follows you forever. The Strike Force in Eastern Washington is activley hunting cases. The Western District is prosecuting tech executives and fraud rings. This isnt the time to hope they dont find you. Contact a federal criminal defense lawyer who handles white collar cases in Washington. Act now.