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.
Is Your Company Being Audited by the SBA for PPP Loan Fraud?
The SBA is currently conducting an audit of every company that received a loan of $2 million or more under the federal Paycheck Protection Program. The PPP was part of a broader package related to the COVID-19 pandemic. There are strict eligibility requirements, and many companies obtained their loans illegally. When the PPP program was unveiled, it was flooded with applications. Its initial $349 billion allocation ran out very quickly. It was discovered that many companies applied for PPP loans, and were ineligible to receive the funds. Businesses that weren’t really struggling were getting loans. The program was intended to help companies with fewer than 500 employees, yet big chains like major steakhouses were getting multi-million dollar loans. These entities who shouldn’t have gotten the loan – were getting it, yet smaller businesses were unable to get funding.
These types of issues led to changes. Unlike traditional SBA loans, where the audit is done by the lending bank, PPP loan audits are conducted by the SBA directly. Congress allocated another $310 billion in late April.
In order to help business owners and lenders, the SBA issued a FAQ document with information that related to the program. The FAQ also provides guidance which extends beyond the PPP guidelines of the CARES Act. For example, in Question 46 – the SBA established a safe harbor for companies that received less than $2 million in stimulus funds. While the policy is that all companies who received more than $2 million under PPP will be audited, it’s also been mentioned that companies receiving smaller loans may be subject to spot checks for eligibility violations. In other words, all companies that received PPP loans must be prepared to face SBA audits – examining whether they satisfied the PPP requirements. All loan recipients have to be able to defend themselves against potential SBA audits alleging fraud under PPP.
Issues that may lead to liability in an SBA PPP Loan Fraud Audit
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.
Because the SBA has stated it intends on auditing all PPP loan recipients that received more than $2 million in funds, all companies that received funds under the program must prepare for a potential audit. This starts with understanding what types of issues have the potential to trigger a potential criminal referral under the CARES Act, False Claims Act, and other federal statutes.
Loan Stacking: Under the PPP Companies are prohibited from obtaining multiple loans by submitting numerous applications via multiple lenders.
PPP Loan Application Fraud: Misrepresenting information during the loan application process is a form of fraud.
Fraudulent Loan Certification: One of the main issues the SBA will be examining during its audits is whether companies lied about the need of PPP funds.
Using PPP funds for Ineligible Purposes: PPP funds can only be used for payroll and other limited purposes.
Fraudulent Loan Forgiveness: When seeking repayment forgiveness under the PPP, companies have to submit documentation and certify that the documents are true, and they used the forgiveness amount for the correct purposes.
How to prepare for an SBA PPP Loan Audit
If you received a federal loan under the PPP, you should be prepared for the possibility of an SBA audit. It’s important to have complete documentation on how your company used the PPP loan to support the business. The information should be easy to retrieve in the event of an SBA audit. It’s important that you collect documentation demonstrating the company has met the PPP eligibility criteria requirement before submitting its application. If your company was not eligible at the time of the application, then you have to make a decision on whether to return the funds, or potentially hire an SBA fraud defense lawyer to help you.
