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.
Corporate Investigations & PPP Loan Fraud
Is your company at risk of PPP loan fraud allegations due to a federal audit, or federal investigation? Our criminal defense lawyers can help you assess your level of risk, and build a defense strategy.
The PPP was designed to help businesses, but it led to widespread fraud due to a lack of oversight. The SBA is auditing all companies that got loans of $2 million or more, and the OIG, FBI, IRS, DOJ, and other agencies are also getting involved in these PPP loan fraud allegations. Companies that received PPP loans must take measures to ensure they don’t face criminal liability in the event of an audit or investigation by the SBA.
At Spodek Law Group, we have experience representing clients nationwide in a wide array of PPP matters, and other issues. This includes cases involving numerous federal agencies, at various stages of the criminal defense investigation process.
Why business owners need to conduct due diligence regarding their PPP loans
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.
The PPP offered relief to business owners. The issue is the loan comes with a number of risks. Banks were flooded with applications – some which were fake, some which had false information, and some which were legitimate. Companies were rushing to get their application in quickly. When the initial round of funding opened for the PPP program, the eligibility criteria for getting PPP loans wasn’t clear. Even though the CARES Act provided a framework, there were many unanswered questions. The SBA was forced to issue a subsequent FAQ in order to help explain the PPP requirements.
While the DOJ has started subpoenaing PPP lenders, at this point it is focused on getting more information about PPP applicants. There is a chance that some lenders could face allegations for enabling fraudulent PPP loan applicants, but ultimately – it’s likely that the blame will rest entirely on the applicants themselves. Asa result, just because the bank issued you the PPP loan doesn’t mean you are absolved of guilt. If your PPP application contained inaccuracies, or if it contained blatant lies, or if you submitted your PPP loan application to multiple lenders – then your company is likely to be at risk of an SBA audit, or worse.
Another common reason for PPP loan fraud investigations is when a company submits a request for PPP loan forgiveness, based on inaccurate information. All loans issued under the PPP loan program are eligible for forgiveness, assuming the loan recipient adheres to the requirements required for the use of the PPP funds. Specifically, companies can only for forgiveness on the PPP loan when its used for payroll costs, insurance premiums, interest, rent payments, utilities, and payroll.
When submitting your request for PPP forgiveness, companies have to submit a certification that the business owner complied with the terms of the PPP. Making this certification requires that you make the affirmative stance that you are not lying, or relying on assumptions/willful ignorance, and the statements you are making are correct.
Another issue regarding corporate investigations for PPP loan fraud is applying for a loan that you weren’t eligible for. When the first round of funding opened under the PPP loan, banks were flooded with applications and the funds were quickly exhausted. Companies rushed to get their applications in, and as a result – many applicants got funding that they didn’t deserve.
Initially, the PPP eligibility wasn’t clear. As a result, banks gave loans to people who didn’t deserve it. In reality, many companies didn’t even know they didn’t deserve the PPP funds. Once the SBA realized that their guidance wasn’t clear – and it was their fault partially, the SBA offered a grace period – where borrowers could return PPP funds – without any penalty.
The penalties for PPP loan fraud can be huge
If you’re accused of PPP fraud under the CARES Act PPP program, corporate entities can face huge penalties. Owners, executives, etc, can be at risk for a civil or criminal prosecution.
Below are examples of charges that you can be at risk: wire fraud, tax fraud, tax evasion, making false statements to the government, conspiracy to commit wire fraud, conspiracy to make false statements to the government.
In civil cases, penalties for PPP fraud can include many fines, such as treble damages, attorney fees, exclusion from other federal government programs, and more. In criminal cases, company owners and board members can face fines and federal imprisonment.
What’s involved in an internal corporate PPP loan fraud investigation?
When you conduct an internal corporate investigation, the focus has to be on confirming you are in compliance with the CARES Act. The facts have to confirm you were in compliance when you applied. Companies should rely on legal counsel who can oversee the investigation, and help ensure there are no issues.
