Criminal Defense Lawyers

Nashville PPP – SBA – EIDL Loan Fraud Lawyers

Nashville PPP – EIDL Loan Fraud Lawyers

The COVID-19 pandemic led to an unprecedented level of federal assistance for small businesses across the country. The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program distributed billions of dollars in forgivable loans and grants to help businesses stay afloat during pandemic shutdowns. However, the speed at which these programs were rolled out also created opportunities for fraud and abuse. In Nashville, Tennessee and elsewhere, some business owners took advantage by falsifying information on their applications to receive money they weren’t entitled to. Now, federal prosecutors are cracking down and charging those responsible with federal crimes such as wire fraud, bank fraud, false statements, and money laundering. If you’re being investigated or charged in relation to PPP or EIDL fraud in Nashville, it’s critical to have an experienced federal criminal defense lawyer on your side.

The PPP and EIDL Programs

The PPP loan program was designed to provide small businesses with low-interest, forgivable loans to cover payroll, rent, utilities and other expenses during COVID-19 shutdowns. To qualify, businesses had to certify that the loans were necessary to support ongoing operations given the uncertainty of the pandemic. The EIDL program similarly aimed to provide working capital loans and emergency grants of up to $10,000 to businesses impacted by the pandemic. However, the programs’ loose eligibility requirements, rushed rollout, and lack of oversight made them ripe for abuse.Some of the most common PPP and EIDL fraud schemes in Nashville included:

• Applying for multiple PPP loans through different lenders
• Claiming more employees or higher payroll expenses than the business actually had
• Using PPP funds for unauthorized personal purchases instead of business expenses
• Applying for an EIDL grant and PPP loan for the same purported losses
• Falsifying financial records to qualify for larger loan amounts
• Applying for loans under the name of defunct or shell companies

Fraud Charges and Penalties

These types of fraud can lead to felony charges at both the state and federal level. The Department of Justice has made prosecuting pandemic-related fraud a top priority through its COVID-19 Fraud Enforcement Task Force. In Nashville, several business owners have already been indicted for PPP and EIDL fraud, including:

• The owner of a talent agency accused of obtaining $2.2 million in PPP loans and using the money to buy a new house
• A nurse practitioner charged with wire fraud and money laundering for falsely claiming to have dozens of employees
• The operator of a tax preparation service indicted for bank fraud related to multiple PPP loans totaling over $1 million

Those found guilty of federal loan fraud charges face substantial penalties depending on the amount of money involved. Wire fraud, bank fraud, and money laundering charges each carry maximum sentences of 20-30 years in prison. False statement charges carry up to 5 years imprisonment. Restitution and hefty fines are also common sentences. With so much at stake, having an experienced federal criminal defense lawyer is critical.

Possible Defenses

While PPP and EIDL fraud allegations should always be taken seriously, there may be defenses in certain cases. An attorney can review the evidence and determine if any of the following arguments apply:

• You acted in good faith reliance on a lender’s guidance about how loan funds could be used
• You made a mistake or misunderstanding on the application but did not intentionally mislead
• You used the funds as intended but have trouble documenting expenses
• You qualify for an exception to false statement charges by correcting any misstatements in a timely manner
• The government is overreaching or prosecuting based on unclear or retroactively changed rules

In some cases, it may be possible to avoid criminal charges entirely through voluntary disclosure and repayment of any improperly obtained loan amounts. An attorney can negotiate this option on your behalf if appropriate. They can also seek to minimize any charges brought by making a compelling case to prosecutors about factors such as:

• Lack of criminal history
• Prompt cooperation and acceptance of responsibility
• Steps taken to correct the record and repay funds
• Charitable community involvement and contributions
• Exceptional circumstances or business hardship

If charges cannot be avoided, a skilled federal criminal defense lawyer will thoroughly analyze the prosecution’s case, identify any procedural flaws or evidentiary weaknesses, and hold them to their burden of proof at trial. They may also be able to identify and negotiate for lesser charges that carry less severe penalties.

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

Choose an Experienced Attorney

Facing federal criminal charges is always daunting. But with an experienced attorney guiding you through the process, it is possible to minimize penalties and avoid jail time in many PPP and EIDL fraud cases. Be sure to consult with a lawyer as soon as you learn you are under investigation – don’t wait until after charges are filed. This maximizes options for avoiding prosecution and the ability to build an effective defense if necessary. The right lawyer will handle your case discreetly while aggressively defending your rights at every stage.At [Law Firm Name], our Nashville federal criminal defense attorneys have a proven track record of achieving favorable outcomes in complex white collar cases like PPP and EIDL fraud. We understand how high the stakes are and will work tirelessly to protect your future. Contact us for a free consultation to discuss your situation and legal options.