YOU MAY HAVE SEEN TODD SPODEK ON THE NETFLIX SHOW INVENTING ANNA
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.
Arizona PPP and EIDL Loan Fraud Lawyers
As the world grapples with the economic devastation wrought by the COVID-19 pandemic, many small businesses have turned to the Paycheck Protection Program (PPP) for financial assistance. However, amidst the rush to secure PPP funds, our federal criminal defense attorneys have witnessed a disturbing trend of fraudulent activity related to these loans. From providing false information on loan applications to misusing funds, the following are some of the most common types of PPP loan fraud that have caught the attention of federal prosecutors.
PPP Application Fraud: The CARES Act, which established the PPP, mandated that businesses provide accurate and truthful information on their loan applications. Failure to do so can result in criminal charges, particularly when it comes to falsifying information about the number of employees, employee payroll, and company revenue. In addition, companies that classify employees as independent contractors to qualify for PPP funds may also be investigated.
Fraudulent Use of PPP Loan Funds: The PPP places strict limits on the use of loan funds, with funds only eligible for forgiveness if used for specific expenses such as payroll, rent, and utilities. Any use of funds for personal or luxury items can attract the attention of federal prosecutors.
Fraud in the Loan Forgiveness Certification Process: To obtain loan forgiveness, borrowers must certify that the loan was necessary due to the pandemic, that funds were used for the intended purposes, and that all documents and information submitted are accurate and truthful. Providing false information or fraudulent documentation during this process can result in criminal charges.
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.
Obtaining Multiple PPP Loans From Different Lenders: The PPP allows for up to two loans for certain businesses, but any company that applies for multiple loans with different lenders may be investigated by the government and face criminal charges.
As the federal government continues to aggressively pursue criminal charges for PPP loan fraud, it is crucial for any business that may have engaged in these activities to seek the advice of a criminal defense attorney immediately. The stakes are high and the consequences severe, but with the right legal representation, it may be possible to mitigate the damage and move forward.
The Paycheck Protection Program (PPP) loan fraud is a serious crime that involves obtaining money through false pretenses under the CARES Act. Small businesses affected by COVID-19 with fewer than 500 full-time employees are eligible for up to $10 million in relief to cover expenses such as payroll, mortgages, rent, and utilities for eight weeks. However, those who cheat the Small Business Administration (SBA) out of this money face severe federal penalties, including potential prison time, fines, and repayment of the loan.
PPP loan fraud is a federal crime under the Small Business Act, and the sentence depends on the specific offense. Making false statements or overvaluing securities are considered felonies, carrying a potential $5,000 fine and/or 2 years in federal prison. Embezzlement is also considered a felony, carrying a potential $10,000 fine and/or 5 years in prison, in addition to the requirement to pay restitution.
However, there are defenses that can be argued in cases of PPP loan fraud. The defendant can argue that they had no intent to defraud, as loan applications can be complicated and mistakes can be made. Additionally, the defendant can argue that the SBA made a mistake, and present evidence such as email communications, voicemails, bank statements, accounting notes, receipts, and bills to prove their innocence.
It is worth noting that, in most cases, federal criminal records are not sealable. Additionally, fraud involving more than $10,000 is considered an aggravated felony and a crime involving moral turpitude, making non-citizens convicted of CARES Act fraud vulnerable to deportation.
The Paycheck Protection Program was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was signed into law on March 27, 2020. The PPP offered businesses up to $2 million in loans, with no interest or principal due for the first 12 months. The program was immensely popular and flooded with applications, but as a result of lack of regulation and little oversight, accusations of fraud soon followed. The SBA’s Office of Inspector General has issued 11 reports detailing widespread fraud and abuse in the PPP loan program and referred dozens of cases of suspected fraud to the Department of Justice for criminal prosecution.
