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New Jersey PPP Loan Fraud Lawyers
New Jersey PPP Loan Fraud Lawyers
Spodek Law Group – Over 50 Years of Combined Experience
Introduction
If you’re on our website, it’s because you’re in legal trouble – and need the best criminal defense attorney. If you have received a target letter, or federal authorities have come to your home claiming you broke the law, you should hire an experienced New York criminal lawyer – ASAP. At Spodek Law Group, we understand this is scary, you have no idea what’s going on, and we take this very seriously.
Spodek Law Group, is a premier, and award winning, New York / Federal criminal defense law firm. We have offices throughout Long Island NYC. Our team has experience dealing with some of the toughest legal issues nationwide. We pride ourselves on having a top team of attorneys, who have over 50 years of combined experience. Regardless of where your case is in the USA, or the situation you’re dealing with, or the stage of the case, we can help you. We are available 24/7, to provide a risk free consultation. If you’re looking to hire a criminal defense attorney, it’s likely the Spodek Law Group is on your radar – and capable of winning your case.
Why PPP Loan Fraud Cases Arise
When COVID-19 hit, the federal government passed the CARES Act, which introduced the Paycheck Protection Program (PPP). This program was meant to keep businesses afloat by covering payroll and other essential expenses. But because of how quickly the program rolled out, there has been significant investigation into potential misuse of PPP funds. Federal agencies like the Department of Justice (DOJ), Small Business Administration (SBA), FBI, and IRS are aggressively reviewing loan applications. If they believe you knowingly provided false information or diverted PPP funds, you could be charged with:
- Wire Fraud (18 U.S.C. § 1343)
- Bank Fraud (18 U.S.C. § 1344)
- False Statements (18 U.S.C. § 1014)
- Conspiracy (18 U.S.C. § 371)
- Violations of the False Claims Act (31 U.S.C. § 3729)
These are serious charges that can lead to years in prison, serious fines, and other consequences. At Spodek Law Group, our goal is to get the case against you dismissed, or significantly diminished. We understand that you may be in legal trouble – and need the best possible legal representation at all stages of your case.
Federal Jurisdiction and the Stakes
Since PPP funds are federally guaranteed, most PPP loan fraud cases end up in federal court. That means you’ll be dealing with Assistant U.S. Attorneys (AUSAs) who have experience prosecuting white-collar crimes. Federal prosecutors often file multiple charges if they believe there’s wrongdoing, especially when large sums of funds involved. They might charge you with bank fraud, wire fraud, and making false statements. Even if your legal matter seems minor initially, it can escalate very fast.
Some New Jersey residents also face state-level charges if local authorities believe you broke state laws. In certain situations, you can face overlapping charges at both the federal and state levels. Double jeopardy concerns might arise, but remember that federal and state courts are separate sovereigns—meaning you could be prosecuted in both jurisdictions if each set of charges covers distinct legal violations. At Spodek Law Group, we have experience handling parallel proceedings. We are available 24/7 to help you, and we keep you informed about all stages of your case.
Potential Penalties for PPP Loan Fraud
A conviction for PPP loan fraud can carry severe penalties, including prison time, significant fines, restitution, and more. Below is a quick look at some federal statutes commonly used in these cases:
| Statute / Charge | Potential Penalties |
|---|---|
| 18 U.S.C. § 1014 (False Statements) | Up to 30 years in prison, up to $1 million in fines |
| 18 U.S.C. § 1343 (Wire Fraud) | Up to 20 years in prison, plus significant fines and restitution |
| 18 U.S.C. § 1344 (Bank Fraud) | Up to 30 years in prison, plus large fines and restitution |
| 18 U.S.C. § 371 (Conspiracy) | Up to 5 years in prison, plus possible fines |
| 31 U.S.C. § 3729 (False Claims Act) | Treble damages, civil penalties for each false claim (can be steep) |
If you’re convicted, you might also face asset forfeiture, probation, and a permanent record—hurting your future job prospects and professional licenses. Federal sentencing guidelines look at factors like the amount of loss, your role in the offense, and criminal history. Our job as your attorneys is to find ways to lessen or eliminate these consequences. We’ve seen prosecutors aggressively pursue maximum sentences, especially if large amounts of money are at stake. Because of that, we aim to defend you aggressively at every stage.
Building a Strategy
Our philosophy is rooted in getting our clients the best possible outcome. Regardless of the situation you find yourself in, know that our criminal defense attorneys can help you. Below are some common defenses and scenarios we see in PPP loan fraud cases:
1. Lack of Criminal Intent
Scenario: You relied on outside advisors, like a consultant, to handle your PPP application, and payroll numbers were inflated without your knowledge.
Strategy: Under 18 U.S.C. § 1014, the prosecution must prove you acted intentionally. If we show you genuinely believed the data was accurate—and had no motive to lie—it can weaken the government’s case.
2. Innocent Misuse of Funds
Scenario: You used PPP funds for expenses you believed were permissible, only to learn later they might not qualify.
Strategy: We argue a good-faith error. We point out efforts you made to correct the situation, such as repaying the loan once you realized there was an issue. This good faith can help.
3. Insufficient Evidence
Scenario: Authorities might be claiming you spent PPP money on personal items, but you have documentation proving they were legitimate business expenses.
Strategy: If the prosecutor can’t show wrongdoing beyond a reasonable doubt, the case will fail. We file motions to suppress improperly obtained evidence and highlight gaps in the government’s proof.
4. Fourth Amendment Violations
Scenario: Agents conducted a search of your New Jersey office without following proper procedures.
Strategy: Evidence seized through an illegal search may be excluded. Without that key evidence, the prosecution’s case could collapse. This is a strong defense option in many white-collar cases.
5. Double Jeopardy and Parallel Proceedings
Scenario: The state of New Jersey is looking into your PPP loan usage, and now federal authorities are also investigating.
Strategy: We examine each set of charges carefully. If they overlap too closely, we address any double jeopardy concerns. If they’re distinct, we still coordinate your defense so you’re always informed and ready for what’s next.
6. Negotiated Resolutions
Scenario: The government has considerable evidence, and you face a long prison term if convicted.
Strategy: Depending on the facts, we can consider cooperation or a plea agreement that reduces your exposure. Sometimes a deferred prosecution agreement might be possible, sparing you a conviction if you meet certain conditions.
Federal Sentencing Guidelines: What to Expect
Federal courts typically follow the United States Sentencing Guidelines to determine an “offense level,” considering the financial loss, your role, prior criminal history, and more. A higher offense level means a longer recommended sentence. There are also minimum mandatory sentencing guidelines. Judges can depart from the guidelines, but prosecutors often argue for a sentence within or above that range if the alleged fraud involved substantial amounts.
Our team’s goal is to present mitigating factors—like repayment, minor involvement, or no prior offenses. Even if the evidence seems strong, there might be options to lower your offense level or negotiate a plea that spares you the harshest punishment.
The Importance of a Nationwide Approach
At Spodek Law Group, we handle cases across the entire USA. We have offices throughout Long Island and NYC. Our team has experience dealing with some of the toughest legal issues nationwide. PPP loans often involve interstate financial institutions, so you want a law firm comfortable with federal procedures, not just state courts. Some attorneys may decline these complex cases because federal authorities have immense resources, but we’re prepared to represent you at every step.
Our Firm’s Philosophy and Experience
Our managing partner, Todd Spodek, is a second-generation criminal defense lawyer, with years of experience successfully handling hundreds of criminal defense cases. He has been seen on major news outlets, such as NYPost, Newsweek, Fox 5, Insider.com, and many others. Many of the cases we’re famous for handling are those that others say were unwinnable. This is key to why clients choose us.
We focus on ensuring you have an online digital portal for communications, so everything from invoicing to document submissions is streamlined. We are here 24/7 to help you, and we encourage you to ask us anything during our risk-free consultation. Spodek Law Group is known for providing the best possible customer service. We pride ourselves on having a rock star team of attorneys, who have over 50 years of combined experience. Our only objective is to get the case against you dismissed, or significantly diminished.
How to Protect Yourself During an Investigation
- Stay Calm: Don’t speak with federal agents or prosecutors until you’ve consulted our criminal lawyers..
- Maintain Records: Keep payroll documentation, bank statements, and any PPP-related paperwork organized.
- Contact an Attorney ASAP: If you have received a target letter, or federal authorities have come to your doorstep alleging you broke the law, you should hire an experienced New York criminal lawyer – ASAP.
- Limit Disclosures: Prosecutors carefully review all available information. Avoid posting on social media or talking to third parties about your case until advised otherwise.
By taking these steps, you’re in a stronger position to address any claims of misconduct.
Take the Next Step – Call Us Today
If you or a loved one has been arrested – you’re likely scared, and anxious. The most important thing to remember – you have to stay calm, and get ready. You want to have an attorney on your side as early as possible. When you reach out to our criminal defense law firm, the process of working with us begins with a risk-free consultation. You can ask us anything, regardless of how long it takes.
We have over 50 years of combined experience handling state and federal cases nationwide. We have offices throughout Long Island and NYC. We are available 24/7, to provide a risk free consultation. Our only objective is to get the case against you dismissed, or significantly diminished.