Criminal Defense Lawyers

New York PPP Loan Fraud Lawyers

New York PPP Loan Fraud and EIDL Loan Fraud Lawyers
If you’re on our website, it’s because there’s a looming legal problem —federal investigators might be looking into your Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) applications, and you need an experienced legal team to protect your future. At Spodek Law Group, we’ve spent over 50 years combined facing off against state and federal prosecutors, including the DOJ, SBA, IRS, and other government entities. Our goal is simple: we want to get these charges dismissed, or significantly reduce them, so you can get back to your life. Below, we’ll break down what federal PPP/EIDL fraud investigations typically look like, the potential pitfalls you might be facing, and the defenses that might help you get out of this situation.

The Federal Framework: Why PPP/EIDL Fraud Investigations Are Serious

Federal jurisdiction in PPP and EIDL cases originates from the CARES Act, a federal statute that allocated funds to help businesses weather the economic storm of the COVID-19 pandemic. Because these are federal loans, allegations of misrepresentation—from inflated payroll numbers to questionable usage of loan proceeds—can quickly land you in the crosshairs of federal prosecutors. If you find yourself looking for answers while the FBI or SBA calls you in for questioning, you’re not alone. We’ve seen countless business owners, entrepreneurs, and even sole proprietors get shocked by how swiftly the federal government can build a case (see 18 U.S.C. § 1343 for wire fraud and 18 U.S.C. § 1344 for bank fraud).

• Double Jeopardy Considerations
  You might be wondering, “Can they really charge me twice?” Typically, double jeopardy (under the Fifth Amendment) prevents repeated prosecution for the same federal offense. However, a separate state-level case could still arise if New York State authorities decide you violated state law, like if identity theft under state statutes is the allegation. This nuanced interplay between federal and state “sovereigns” is something we’ve navigated for years. Simply put, you want a law firm that gets the complexities of overlapping jurisdictions—and knows how to fight in both arenas.

Potential Charges and Penalties

In PPP/EIDL fraud cases, prosecutors often layer multiple charges in order to maximize the penalties, and increase the chances of a conviction:

• Wire Fraud (18 U.S.C. § 1343): Alleging false statements via electronic communications.
• Bank Fraud (18 U.S.C. § 1344): Claiming you deceived a financial institution to secure a loan.
• Conspiracy (18 U.S.C. § 371): Suggesting you partnered with others to commit fraud.
• Aggravated Identity Theft (18 U.S.C. § 1028A): Stacking on if personal data was misused or forged.

The possible penalties range from severe fines to lengthy federal prison sentences. Federal Sentencing Guidelines can also pile on “enhancements” for things like large dollar losses, multiple victims, and alleged “sophisticated means.” Many clients come to us scared by these prospects—but rest assured, we know exactly how to analyze every element of the prosecutor’s case and create a defense strategy that works.

Spodek Law Group, P.C. - NYC Criminal Attorneys

5.0

Based on 745 reviews

George Fernandez

14:16 30 Apr 24

Excellent 10 out of 10, Helped resolve my case. Jeremy explained everything and made everything easy to understand.

Raj

21:33 24 Apr 24

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!

Yelva Saint-Preux

19:26 19 Apr 24

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.

Katherine Sun

18:08 18 Apr 24

my lawyer is Alex Zhik. Efficient, patient and professional

Nun ya

17:48 18 Apr 24

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.

Keisha Parris

20:45 15 Mar 24

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.

Taïko Beauty

16:26 15 Mar 24

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!

K Mar

01:37 25 Jan 24

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.

Defense Strategies

At Spodek Law Group, we focus on outcomes. We start by analyzing the facts of your case—and we don’t stop until we find a path that sets you up for the best possible resolution. Below are examples of defense strategies that might apply to your situation, complete with hypothetical scenarios we’ve encountered (or fought) in practice.

1. Lack of Fraudulent Intent — The “Good Faith” Scenario

• Situation: You’re a small business owner in Manhattan trying to keep the doors open. You hire a part-time accountant to handle the PPP application. That accountant, unfamiliar with ever-shifting SBA guidance, mistakenly categorizes certain personal draws as payroll. Now the federal government alleges you “knowingly falsified information.”
• Defense Approach: We highlight the genuine confusion surrounding SBA guidelines early in the pandemic, especially as rules evolved. We examine your communications with the accountant, the lender, and any documents you relied upon. Our goal is to demonstrate you didn’t intend to mislead anyone. In federal fraud cases, intent is everything; if we can show the error was inadvertent, it can derail the prosecution’s narrative of willful deceit.

2. Insufficient Evidence — The “Paper Trail Gaps” Argument

• Situation: You operate a startup in Brooklyn and used PPP funds to license new software you deemed “essential.” Prosecutors claim the software purchase was unnecessary.
• Defense Approach: We methodically analyze receipts, internal memos, meeting notes, and vendor correspondence to show a legitimate business rationale. Remember, the government must prove beyond a reasonable doubt that you committed fraud. If their evidence is shaky, we leverage that weakness—possibly filing a pre-trial motion to dismiss on grounds of insufficient proof.

3. Entrapment or Government-Induced Error — The “Misleading Guidance” Defense

• Situation: A so-called “loan consultant” who claims ties to the SBA encouraged you to shift EIDL funds around or include ineligible expenses. Suddenly, investigators accuse you of gross misappropriation.
• Defense Approach: If we can prove you wouldn’t have done anything wrong but for the misleading instructions of someone posing as a government agent—or actually working with authorities—we argue entrapment. This requires meticulous documentation of emails, texts, and calls that show you acted only in response to official (or purportedly official) guidance. Entrapment defenses can be potent, but they demand a thorough, evidence-heavy presentation.

4. Unconstitutional Searches — The “Fourth Amendment” Shield

• Situation: Federal agents raid your home office without a properly obtained warrant, seizing laptops, ledgers, and personal documents.
• Defense Approach: We’ll file a motion to suppress evidence under the principle that illegally obtained evidence violates your Fourth Amendment rights (see Mapp v. Ohio, 367 U.S. 643 (1961)). If the judge rules that evidence was collected unlawfully, it can’t be used to build the government’s case. This strategy has tanked prosecutions where evidence was the linchpin.

Sentencing Guidelines and Plea Negotiations

Many PPP/EIDL fraud cases end in negotiated pleas—especially if prosecutors believe you misrepresented large sums. Under the U.S. Sentencing Guidelines, the level of the offense climbs with the financial “loss amount” and other alleged aggravating factors. However, there can also be downward ways to reduce the severity. For example, if you demonstrate acceptance of responsibility, or if you provide significant cooperation about a conspiracy. Our goal is to ensure that if plea negotiations are the best route, you’re getting the most favorable deal. And if trial is the way forward, we’ll prepare an aggressive defense that challenges every element of the government’s case.

Why Spodek Law Group Is a Game-Changer

Choosing the right attorney could be the single biggest decision you make if you’re under federal investigation. At Spodek Law Group, we pride ourselves on having a rock star team of criminal defense attorneys who fight tirelessly for our clients. We handle federal and state cases across the nation, and we never hesitate to go head-to-head with the DOJ, FBI, or NY State prosecutors if it means defending your future.

1. Over 50 Years of Combined Experience: Our attorneys have seen it all—from first-time offenders caught up in minor allegations to high-profile defendants facing nationwide scrutiny.
2. 24/7 Accessibility: We understand the anxiety you’re experiencing. Our team is on standby, day or night, to address your concerns.
3. Deep Knowledge of Federal Law: We don’t just sometimes handle federal cases—we are fluent in them. Our attorneys understand how the U.S. Attorney’s Office builds a case and have a track record of challenging evidence effectively.
4. Nationwide Reach: Whether you’re in NYC or across the country, our online portal enables seamless communication, document sharing, and strategy sessions, ensuring you’re never left in the dark.
5. Client-Centric Focus: We only take on cases we believe we can help, and we commit ourselves wholeheartedly to winning or significantly reducing your charges. No “mill” mentality here—we offer personalized, strategic counsel built around you.

Take Action—Now

Time is your enemy in federal PPP/EIDL fraud investigations. The longer you wait, the more opportunity the government has to build its case. When you contact Spodek Law Group, you’re taking the first critical step toward reclaiming control over your future. We offer a risk-free consultation, where you can share every detail of your situation, ask the tough questions, and receive straightforward advice about potential next steps. If the allegations against you are serious, now is the time to act. Don’t let fear or uncertainty derail your life—reach out today, and let us start crafting a defense strategy that stands up to prosecutorial scrutiny.

We’re Here to Fight for You

Whether you legitimately misunderstood SBA guidelines or got swept up in an overly aggressive federal crackdown, you deserve an attorney who treats you like family. At Spodek Law Group, we’re passionately committed to helping you navigate this complicated legal system. We know what’s at stake: your freedom, your finances, and your future. If there’s a way to get your case dismissed, we’ll pursue it. If a plea is in your best interest, we’ll negotiate from a position of strength. If a trial is necessary, we’ll stand shoulder to shoulder with you at every turn. That’s the Spodek Law Group difference—and we’re ready to show you what it means to have a team that truly cares. Don’t face this alone. Reach out now, and let us start defending your tomorrow, today.