PPP Fraud Fines and Restitution: How Much Will You Owe?

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience in federal criminal defense. If you're convicted of PPP fraud, prison time is just part of the punishment. You'll also owe massive amounts in restitution and fines – and these financial obligations don't disappear when you finish your sentence.

Criminal Restitution Is Mandatory

Federal courts must order restitution in fraud cases under the Mandatory Victims Restitution Act. The judge has no discretion – if you're convicted, you're paying back what you stole. In June 2025, Richard Nieto was sentenced to 46 months in prison for PPP fraud involving $913,000 in loans. The court ordered him to pay $962,438 in restitution – more than the loan amount because it included interest and investigation costs. Renetta Golden-Larimore got 51 months in prison and $908,278 in restitution for her role in obtaining over $900,000 in fraudulent PPP loans. She also had to forfeit $75,833 – money the government traced directly to the fraud. In August 2025, a Nevada man was ordered to pay $11,793,064 in restitution for fraudulently obtaining more than $11 million in PPP loans. He laundered the money through real estate, gambling and luxury purchases. The court also ordered forfeiture of $11,231,186, two vehicles and five properties. Restitution isn't dischargeable in bankruptcy. It survives your death – your estate owes it. The government can garnish your wages, seize your tax refunds, take your Social Security benefits and place liens on your property until it's paid in full.

How Courts Calculate Restitution Amounts

Restitution typically equals the full loan amount plus accrued interest. Courts also include administrative costs, investigation expenses and any consequential damages suffered by victims. If you obtained $50,000 in fraudulent PPP loans three years ago and the government spent $10,000 investigating and prosecuting you, the restitution order could be $60,000 plus interest. The interest calculation depends on when you received the funds and when you're sentenced. Some defendants argue they should only owe restitution for funds they actually spent, not the full loan amount. Courts reject this argument. Once you obtained money through fraud, you owe full restitution regardless of whether you still have the money or spent it all.

Joint and Several Liability in Conspiracy Cases

If you participated in a conspiracy involving multiple defendants, you can be held jointly and severally liable for the entire loss – not just your portion. Say three people conspired to obtain $500,000 in fraudulent PPP loans, and you personally received $50,000. The court can order you to pay the full $500,000 in restitution. The government can collect the full amount from any defendant in the conspiracy who has assets. If the other co-defendants are broke and you have money, the government will collect from you first. You then have to sue your co-conspirators for contribution – good luck with that.

Criminal Fines Add to the Financial Burden

On top of restitution, judges impose criminal fines as punishment. Bank fraud under 18 USC §1344 carries a maximum fine of $1 million per count. Wire fraud under 18 USC §1343 carries up to $1 million per count. Making false statements under 18 USC §1014 also carries a $1 million maximum fine. Money laundering under 18 USC §1956 carries the greater of $500,000 or twice the value of the laundered funds. If you laundered $200,000, the maximum fine is $400,000. If you laundered $1 million, the maximum fine is $2 million. Courts don't automatically impose maximum fines. The fine amount depends on your ability to pay, the seriousness of the offense and the need for deterrence. But six-figure fines are common in PPP fraud cases involving substantial losses. In many cases, defendants can't pay large fines immediately. Courts establish payment schedules – monthly installments over years or decades. Missing payments triggers additional interest and penalties.

Alternative Fine Provisions

Under 18 USC §3571(d), the court can impose an alternative fine equal to twice the gross gain from the offense or twice the gross loss to victims, whichever is greater. This provision allows fines far exceeding the statutory maximums in massive fraud cases. If you obtained $5 million in fraudulent PPP loans, the court could impose a $10 million fine under the alternative fine provision – far more than the $1 million statutory maximum per count.

Forfeiture Strips You of Everything Connected to the Crime

Criminal forfeiture under 18 USC §981 and §982 allows the government to seize property derived from or used to facilitate fraud. If you bought a house with fraudulent PPP money, the government takes the house. If you bought a car, jewelry or luxury goods with PPP funds, the government seizes those too. The Nevada defendant who laundered $11 million in PPP funds forfeited two vehicles, five properties and over $11 million in traceable proceeds. He lost everything. Forfeiture happens even if innocent third parties have an interest in the property. If you bought a house using fraudulent PPP funds and your spouse's name is on the deed, the government can still seize it. Your spouse can file a third-party petition claiming innocent ownership, but courts rarely grant relief unless the spouse had absolutely no knowledge of the fraud and contributed separate funds to the purchase.

Special Assessments and Supervision Fees

Every federal conviction carries a mandatory special assessment – typically $100 per felony count. If you're convicted on five counts, that's $500 in special assessments. You must pay this before you're released from custody. Once you finish your prison sentence, you'll be on supervised release for three to five years. During that time, you pay monthly supervision fees to the probation office – typically $25-40 per month. Miss a payment and you can be violated and sent back to prison.

The Cost of Incarceration

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Some courts order defendants to reimburse the Bureau of Prisons for incarceration costs. The Prison Litigation Reform Act allows BOP to deduct up to 50% of your inmate trust account for court-ordered restitution, fines and fees. If your family deposits money into your prison account for commissary items, half of it can be seized to pay your financial obligations. This continues throughout your entire sentence.

Civil Liability Under the False Claims Act

Even if you're not criminally prosecuted, you can face civil liability under the False Claims Act. The government can sue you for triple damages plus civil penalties up to $28,619 per false claim. If you submitted one fraudulent PPP application for $50,000, the civil exposure is $150,000 in triple damages plus $28,619 in penalties – a total of $178,619. If you submitted three applications, multiply the penalties by three. The False Claims Act allows private whistleblowers to sue on behalf of the government. Former employees, co-conspirators or anyone with knowledge of your fraud can file a qui tam lawsuit. If the government intervenes and wins, the whistleblower gets 15-25% of the recovery. Civil judgments are collectible for 20 years and can be renewed indefinitely. They carry post-judgment interest at the federal rate. The government has powerful collection tools – wage garnishment, bank levies, property liens.

Paying Restitution Can Reduce Your Prison Sentence

While judges can't eliminate restitution, paying it before sentencing can reduce your prison time. Courts view pre-sentencing restitution as evidence of genuine remorse and acceptance of responsibility. If you sold assets, borrowed money from family or liquidated retirement accounts to make full restitution before sentencing, mention it prominently in your sentencing memorandum. It won't guarantee a lenient sentence, but it helps more than anything else you can do. Partial restitution also helps, though not as much. Paying back $10,000 on a $50,000 fraud shows some effort, but judges want to see full restitution when possible.

Why You Need Financial Defense Planning Now

At Spodek Law Group, we help clients address the financial aspects of PPP fraud cases from day one. We work with forensic accountants to challenge loss calculations, negotiate restitution amounts and structure payment plans the court will approve. Todd Spodek has defended complex fraud cases for decades. Our team includes former federal prosecutors who understand how the government calculates losses and forfeitures. We've successfully argued for reduced restitution amounts by identifying legal errors in the government's loss calculations. If you're under investigation or facing charges, contact us immediately. The sooner we start working on your case, the better we can protect your financial interests and your freedom.