Blog
South Dakota PPP Loan Fraud Lawyers
South Dakota PPP Loan Fraud Lawyers
Spodek Law Group
Over 50 Years of Combined Experience
If you’re on our website, it’s because you’re in legal trouble – and need the best criminal defense attorney. At Spodek Law Group, we understand you’re dealing with a federal investigation or indictment in South Dakota, and that everything is on the line. Our team has experience dealing with some of the toughest legal issues nationwide, including serious white collar and federal crimes. Our goal is to provide you the best possible legal representation at all stages of your case – and we take this very seriously. Our law firm services an extremely curated, and professional, clientele that wants the best possible criminal defense attorney and is educated in knowing what makes an attorney the best.
Why Federal Cases Are Different
PPP loan fraud, in most situations, is prosecuted at the federal level. That’s because PPP loans were administered by the Small Business Administration (SBA), a federal entity. When federal prosecutors believe you misused or fraudulently obtained PPP funds, they usually pursue charges like wire fraud (18 U.S.C. § 1343), bank fraud (18 U.S.C. § 1344), false statements (18 U.S.C. § 1001), or conspiracy (18 U.S.C. § 371). These statutes carry serious consequences, and if you’re in South Dakota dealing with federal agencies such as the DOJ, it’s important to hire an attorney who is experienced in federal criminal defense.
Potential Penalties and Consequences
Below is a table summarizing some of the main statutes used in PPP loan fraud cases, and the penalties you might face:
| Charge | Statute | Potential Penalties |
|---|---|---|
| Wire Fraud | 18 U.S.C. § 1343 | Up to 20 years in prison, fines, restitution |
| Bank Fraud | 18 U.S.C. § 1344 | Up to 30 years in prison, fines up to $1 million, restitution |
| False Statements | 18 U.S.C. § 1001 | Up to 5 years in prison, potential fines, restitution |
| Conspiracy | 18 U.S.C. § 371 | Up to 5 years in prison, fines, restitution |
When federal authorities choose to prosecute you, they rely on the U.S. Code and the Federal Sentencing Guidelines. Depending on the amount the government claims was lost, your role in the offense, and other factors, you could face significant jail time, heavy fines, probation, the government can take your assets, and hurt your future.
The Importance of an Experienced Federal Defense Lawyer
Not all lawyers understand how to handle federal criminal charges. We do. We pride ourselves on having a rock star team of attorneys, who have over 50 years of combined experience. Regardless of the situation you find yourself in, know that our criminal defense attorneys can help you. Unlike state cases, federal cases often involve detailed investigations. Prosecutors may have gathered digital evidence, financial records, bank statements, and more. If you’re looking to hire a criminal defense attorney for your PPP loan fraud case in South Dakota, it’s likely the Spodek Law Group is on your radar – and capable of winning your case.
At 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. We’ve been on major news outlets for legal insights. In 2022, Netflix released a series about one of Todd’s clients: Anna Delvey/Anna Sorokin. Our attorneys have the experience necessary to guide you through a difficult investigation or indictment.
Common PPP Loan Fraud Scenarios
Regardless of the situation you find yourself in, know that our criminal defense attorneys can help you. Below are some of the situations we handle:
- Inflated Payroll Figures
You might have accidentally overstated your payroll expenses to qualify for a bigger PPP loan. When the government looks at your application and sees numbers that seem suspiciously high, they may suspect you tried to defraud the SBA. Sometimes, confusion arises because of inconsistent guidance from the government on how to count employees and contractors. We focus on proving your lack of criminal intent. - Multiple PPP Loans
Many business owners have more than one entity. If you obtained PPP loans for each entity, the federal government might claim you double-dipped or misrepresented information. We’ll show that each business was legitimate, with its own employees and payroll structure, undercutting the notion that you committed fraud. - Misuse of Funds
The federal government has guidelines for how you can spend PPP funds – typically payroll, rent, utilities, and similar business expenses. If prosecutors say you used the funds on personal luxuries, you could face allegations of fraud. During this consultation, you can ask us anything, regardless of how long it takes. Our attorneys will start creating a defense plan regarding your case, and other potential defenses. If the SBA’s evolving regulations were unclear, we’ll emphasize that confusion was the root of the issue. - False Statements
Perhaps you’re accused of lying on the PPP application or forging documents. In that scenario, we explore every detail about who prepared your application, what data was submitted, and whether there was any misunderstanding or miscommunication. A well-documented mistake can sometimes be misconstrued as intentional wrongdoing, and we work to show the difference.
Double Jeopardy and Parallel Cases
People often ask if they can face both state and federal charges. Generally, the Double Jeopardy Clause prevents the same sovereign from prosecuting you twice for the exact same conduct. But the federal government is a separate sovereign from the State of South Dakota. This means you could, in theory, face related charges at both levels if your alleged conduct violates state and federal laws. If that happens, it’s crucial to hire a legal team like Spodek Law Group, with the knowledge and experience to handle problems across state and federal courts. We’ll ensure you have a clear defense strategy that can address each forum.
Detailed Defense Strategies – Roleplaying Different Scenarios
When we handle a PPP loan fraud case, we start by creating a nuanced defense. Below are examples of how we might approach different scenarios:
Scenario 1: Lack of Criminal Intent
If your business is in Sioux Falls and you relied on third-party advice when preparing your PPP application, you might have accidentally submitted inaccurate data. In this case, we’d show that you hired a reputable accountant or payroll service, believed their guidance, and acted in good faith. We’d collect all relevant communications, highlight inconsistencies in the PPP rules, and emphasize that you had zero intent to commit fraud.
Scenario 2: Accidental Classification Errors
Maybe you run a startup in Rapid City, and you listed independent contractors as full-time employees. The prosecution might see this as misrepresentation. We’ll argue that the PPP’s definitions were confusing, especially in the initial phases of the program. We’ll show you tried to follow the guidelines as best you could, and that any error was accidental – not a deliberate attempt to deceive.
Scenario 3: Multi-Business Overlaps
If you own multiple businesses and each legitimately qualified for its own PPP loan, the government may still label it “double-dipping.” In this scenario, we’ll present evidence of distinct financial records, employees, and organizational structures. We’ll show you acted within the rules by applying for separate PPP loans for separate entities. If confusion arose because the businesses shared certain resources, we’ll document each business’s operations and demonstrate there was no fraudulent activity.
Scenario 4: Wrongful Search and Seizure
In some cases, investigators seize financial records, computers, or bank statements without following proper procedures. We aim to file pre-trial motions and negotiate. We will look to file pre-trial motions to suppress illegally obtained evidence, dismiss improper charges, and other things that will weaken the prosecutor’s case. This is a powerful defense tool, especially if law enforcement went too far.
The Role of Federal Sentencing Guidelines
The Federal Sentencing Guidelines often shape the possible outcomes in a PPP loan fraud case. They factor in the amount the government claims was lost, your role in the offense (e.g., leader vs. minor participant), and whether you interfered with the investigation. Judges must consider the Guidelines but can issue sentences outside them if they see a valid reason. Our attorneys have extensive experience presenting facts that help your case – like minimal criminal history, acceptance of responsibility, or proof that you tried to fix any problems before charges were filed. These arguments can make a huge difference in your final sentencing.
Below is a sample table outlining some sentencing considerations:
| Factor | Impact on Sentencing |
|---|---|
| Amount the Government Claims Was Lost | Higher amounts can increase the recommended sentence |
| Role in Offense | Leadership roles can result in an elevated offense level |
| Acceptance of Responsibility | Can reduce the offense level if you cooperate early |
| Criminal History | Prior record can lead to tougher sentences |
Our Process for Handling Your Case
- Risk-Free Consultation
When you reach out to Spodek Law Group, we’ll begin with a thorough consultation. We encourage you to be open about the case – every detail matters. - Investigative Stage
We’ll gather all available documents, witness statements, financial records, and other information. Our team might collaborate with forensic accountants or investigators to poke holes in the government’s case. - Creating the Defense
We’ll craft a strategy aimed at getting the charges dropped, reduced, or dismissed. We are unafraid of going to trial. If we decide in consultation with you that going to trial is advantageous, we will make the strongest defense strategy to prove your innocence. - Ongoing Support
Spodek Law Group is known for providing the best possible customer service. If you have questions at any point in the process, call us. Our attorneys make sure they are available 24/7, and we take pride in being accessible always. If you or a loved one has been arrested – you’re likely scared, and anxious. We are available 24/7 to help you.
Why Clients Nationwide Trust Spodek Law Group
- Over 50 Years of Combined Experience: Our attorneys have handled major federal cases nationwide, and know what it takes to win.
- National Presence: We have experience handling criminal defense cases nationwide, ranging from Los Angeles to NYC – we are a true, coast to coast, criminal defense law firm.
- Transparent Billing: We don’t hide fees. You’ll know up front what to expect.
- Selective Representation: We only take on clients we truly believe we can help. That means you get the attention and dedication you need.
- High-Profile Track Record: 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.
Next Steps if You’re Accused in South Dakota
If you suspect you’re under investigation for PPP loan fraud – or if you’ve already been indicted – you need to act quickly. Don’t talk to investigators until you’ve consulted an experienced attorney. One wrong statement can mean losing your case or going to jail. That’s why we encourage you to call Spodek Law Group. During this consultation, you can ask us anything, regardless of how long it takes. We encourage you to take this opportunity to ask the tough questions you have. We are available 24/7 to help you.