Criminal Defense Lawyers

Boston PPP – SBA – EIDL Loan Fraud Lawyers

Boston PPP – SBA – EIDL Loan Fraud Lawyers: Your Best Defense Against Federal Prosecution

The COVID-19 pandemic led to unprecedented government stimulus aimed at providing financial relief to struggling businesses and individuals. A key component was the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA). While a lifeline for many, these programs were ripe for abuse and fraud. In Boston and nationwide, federal prosecutors are aggressively pursuing PPP and EIDL fraud cases. Retaining experienced legal counsel can mean the difference between a minor sanction or serious imprisonment.

Overview of PPP and EIDL Fraud

The PPP provided low-interest private loans to small businesses, forgivable if used on eligible expenses like payroll and rent. EIDL provided low-interest disaster loans up to $2 million. With the rush to distribute funds quickly, limited oversight led to widespread fraud. Common schemes include:

• Falsifying employee, revenue, and expense numbers on applications to get larger loans
• Using loans for ineligible expenses like personal purchases instead of business costs
• Applying for multiple loans through different lenders using fake businesses
• Stealing personal information to fraudulently apply for loans in someone else’s name

For example, a Boston used car dealer allegedly falsified documents to obtain $85,000 in PPP loans and $15,000 in EIDL grants.

Federal PPP and EIDL Fraud Investigations in Boston

Various federal agencies are investigating PPP and EIDL fraud cases across the country. This includes the Department of Justice (DOJ), FBI, IRS, and SBA’s Office of Inspector General. In Boston, the U.S. Attorney’s Office for the District of Massachusetts has been aggressively prosecuting cases.Red flags that may trigger scrutiny of your application include:

• Seeking loans far above your business’s real payroll expenses
• Getting multiple loans for one business through different lenders
• Spending funds on personal costs unrelated to business operations
• Lying about number of employees, revenues, expenses on application
• Defaulting on the loan instead of spending it on approved uses

Potential Federal Charges for PPP and EIDL Fraud

If investigators uncover intentional misrepresentations or deception, you may face severe federal criminal charges such as:

• Wire fraud – Up to 30 years if scheme involves disaster relief funds
• Bank fraud – Carries up to 30 years imprisonment
• Aggravated identity theft – 2 years mandatory minimum prison sentence
• Money laundering – Up to 20 years imprisonment
• Making false statements – Up to 5 years imprisonment

The government can also impose massive civil fines and forfeit any illegally obtained loan amounts.

Why Legal Representation is Absolutely Critical

Facing criminal prosecution by the federal government is terrifying. Prosecutors have endless resources and will pursue the harshest charges to pressure you into pleading guilty. But an experienced federal defense lawyer can level the playing field. Benefits include:

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

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

2024-03-15

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!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

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Google rating score: 4.9 of 5, based on 736 reviews

• Negotiating with prosecutors – We can argue weaknesses in their case and advocate for dismissal or reduced charges. Prosecutors must prove intent, difficult in complex financial cases.
• Explaining the law – These financial fraud laws have nuances easy for laymen to misunderstand. We clarify exactly what conduct each statute prohibits.
• Avoiding mistakes – Talking to federal agents without an attorney often backfires. We advise you on asserting your rights.
• Advancing defenses – We dig into the details to identify potential defenses like lack of intent or being an unknowing participant.
• Obtaining evidence – The government must provide all evidence. We analyze it to build your defense.
• Mitigating sentencing – If convicted, we present proof of your good character and circumstances to minimize or eliminate jail time.

How a Skilled Federal Defense Lawyer Can Help

Facing PPP or EIDL fraud charges is scary. But skilled legal counsel can prevent panic and build your strongest case. Do not delay in seeking representation if contacted by investigators or charged with COVID relief fraud. Reach out for a free case assessment today.

Noteworthy Articles and Resources

• PPP Loan Fraud: Charges and Penalties – Overview of potential PPP fraud charges
• 18 USC § 1343 – Wire fraud – Federal wire fraud statute
• 18 USC § 1344 – Bank fraud – Federal bank fraud statute
• 18 USC § 1028A – Aggravated identity theft – Federal aggravated identity theft statute
• 18 USC § 1957 – Money laundering – Federal money laundering statute
• 18 USC § 1001 – False statements – Federal false statements statute
• District of Massachusetts COVID-19 Fraud Enforcement – DOJ page on Massachusetts COVID fraud efforts
• Report Suspected COVID-19 Fraud – DOJ online form to report COVID-19 fraud