YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
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Are Banks Reporting PPP Loan Fraud to the Government?
Any company who borrowed PPP funds is at risk of facing an audit. The SBA is auditing virtually any company that received PPP loans of $2 million or more. The SBA, the DOJ, and other federal agencies are also targeting recipients in loan fraud investigations.
If you borrowed funds, you might be at risk of getting targeted. If your company received $2 million or more from PPP, the answer is simple: under the current SBA policy – you will be audited. In addition to being audited, your company would be the target of an investigation – and it could come from many different agencies simultaneously.
Federal Agencies are going after banks which issued fraudulent PPP loans
One source of a potential PPP fraud investigation could be the bank which issued your PPP loan. The DOJ has sent grand jury subpoenas to banks in order to get records as part of a broader, and systemic, investigation into COVID loan abuse. Regulators are extremely concerned that banks lent funds under PPP but didn’t put in steps to protect federal fraud programs from fraudulent borrowers. Banks were granted protection – assuming they could demonstrate that they relied on the borrower’s documentation and certifications when issuing PPP loans. This grace doesn’t extend to banks who willingly and knowingly facilitated fraudulent loan applications. It’s clear that the DOJ and other federal agencies are targeting borrowers who illegally got PPP funds. The DOJ has filed charges against many companies, and executives, who were alleged to have committed PPP fraud. Many banks are reporting PPP loan fraud to the government for things such as:
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!
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.
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.
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.
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!
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.
realizing fake shell companies were created in order to file ppp loan applications
falsifying payroll information in order to get ppp loans
filing ppp loan applications on behalf of companies and then diverting the funds
submitting fraudulent certifications for ppp loan applications
The DOJ, the SBA, and other authorities, are looking very closely at PPP loan applications and other information in order to discover fraud and abuse. With the issuance of subpoenas to PPP lenders – this is opening up a new source of evidence that federal prosecutors are using to prosecute fraudulent applicants. Because banks played such a crucial role in processing loans, they have immense information which can be used as evidence.
Are banks providing information about PPP borrowers?
Many PPP loan recipients are losing sleep because they don’t know the answer to one simple question: are banks, that get subpoenas, protecting borrowers? Some are, and some are not. It is difficult to see a situation where banks fight the subpoena. But it also makes sense that they would fight. Many banks will be hesitant to disclose information to the government about their clients private information. But – if a bank is accused of giving too many fraudulent loans, it could leave the bank open to potential federal prosecution for PPP loan fraud. Banks have an inherent interest in complying with government investigations to protect their relationship.
What do business owners need to know about banks potentially sharing their PPP loan application with the DOJ?
Rather than looking for information from individual applicants, the DOJ is analyzing the bank records, and flagging companies that appear to have participated in PPP loan fraud. If banks provide records, the DOJ will be looking to get any/all evidence of fraud under PPP. This includes violations of the PPP program ranging from loan stacking, to submitting false data, and misusing PPP funds.
What are the risks associated with being investigated for PPP loan fraud and PPP funds abuse
For anyone who is accused of committing fraud, the risk of prosecution can be huge. The DOJ is actively pursuing criminal charges in many cases, such as: wire fraud, bank fraud, making false statements, and more. These fines can carry financial fines, and federal prison time. Companies and individuals must act swiftly in order to protect themselves. You must be prepared to do everything possible to prevent charges from being filed in PPP loan fraud investigations.
What issues are triggering PPP loan fraud investigations?
Did your companies application comply with the program? There are many terms and conditions for PPP eligibility. If you submit an application, you’re stating that you meet the eligibility criteria.
Do you have the documentation to prove you were compliant? Even if you were compliant, if the documentation isn’t readily accessible – then you could be prosecuted for PPP fraud. It’s critical you be able to prove it.
Did you separate your PPP funds, so that their use could be tracked? One major aspect of PPP funds is that they can only be used for specific purposes and business expenses. In order to demonstrate correct use of PPP funds, companies should have separated them into different accounts in order to document the expenditures. If PPP loan funds were used for personal expenses and other incorrect expenditures, this can result in a DOJ PPP loan fraud investigation. All expenditures from PPP funds should be tracked and documented.
