Criminal Defense Lawyers

Seattle PPP – SBA – EIDL Loan Fraud Lawyers

Navigating PPP and EIDL Fraud Allegations in Seattle

The COVID-19 pandemic led to an unprecedented level of government assistance for small businesses in the form of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds from the Small Business Administration (SBA). While these programs provided a lifeline for many businesses impacted by the economic fallout of the pandemic, they also opened the door for potential fraud and abuse. Allegations of PPP and EIDL fraud have been on the rise in Seattle and across the country.

Understanding PPP and EIDL Loan Fraud

PPP loans were intended to help businesses retain employees and cover certain expenses during COVID-19 shutdowns and slowdowns. These loans can be forgiven if the funds are used for eligible costs like payroll, rent, utilities, etc. EIDL loans and grants provided working capital funds to businesses impacted by the pandemic.The expedited loan process and lack of oversight around these programs created opportunities for fraud in applications and use of funds. Some common fraudulent activities include:

• Providing false information on loan applications such as number of employees, payroll expenses, cost of goods sold, etc.
• Claiming payroll for fake employees or overstating payroll costs
• Using PPP funds for personal expenses instead of eligible business costs
• Applying for multiple PPP loans through different lenders (“loan stacking”)
• Making false statements to have loans forgiven
• Reselling PPP loan funds received
• Using stolen identities to apply for fraudulent loans

The Justice Department has ramped up prosecutions related to COVID relief fraud, charging hundreds of individuals with PPP and EIDL fraud since 2020. Penalties can include fines up to $1 million and imprisonment up to 30 years for major fraud cases. Even mistakes on applications can be considered fraud if false information is knowingly provided.

Responding to SBA Audits or Investigations

Many cases begin with an SBA audit of a PPP or EIDL loan application or forgiveness request. Red flags like inconsistent numbers, questionable supporting documents, and unusual spending patterns may trigger an investigation.If contacted by SBA auditors or investigators, business owners should consult with a lawyer immediately. An experienced attorney can help craft responses to information requests, assert rights and protections, and avoid self-incrimination.

Fighting PPP or EIDL Fraud Charges

If formally accused of COVID relief fraud, having skilled legal counsel is essential. An attorney experienced in federal fraud cases can identify weaknesses in the prosecution’s arguments and build an aggressive defense. Some potential defenses include:

• Lack of intent – The prosecution must prove you knowingly provided false information with intent to defraud. Mistakes or misunderstandings may rebut intent.
• No loss to the government – If PPP funds were used properly or repaid, there may have been no loss or minimal loss to the government.
• Duress – External pressures like avoiding bankruptcy or laying off staff may have influenced bad choices.
• Entrapment – Aggressive sales tactics by lenders could be raised as a defense in some cases.

In addition to substantive defenses, an attorney will challenge procedural missteps, flaws in evidence collection, violations of rights, and any bias by investigators. Thorough pre-trial investigation and motions can uncover important facts and issues to defeat the charges.If charges are filed in multiple jurisdictions, a lawyer can seek to consolidate the cases to streamline the defense.

Avoiding Criminal Convictions and Jail Time

For those facing PPP or EIDL fraud convictions, keeping the consequences to a minimum is critical. An experienced federal criminal defense lawyer can advocate for:

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.

Load more

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

• Diversion programs or deferred prosecution agreements to avoid a criminal record
• Plea bargains to lesser charges to reduce penalties
• Minimal fines, restitution, and supervised release rather than prison time
• Retaining eligibility for future SBA loans

In some cases, civil settlement agreements with the Department of Justice may preclude criminal prosecution. Skilled negotiators can also petition for a suspension or debarment from federal loan programs rather than outright exclusion. This preserves options for the future.

Avoiding Collateral Consequences

Beyond direct penalties, PPP or EIDL fraud convictions can have significant collateral impacts on finances, career, and reputation. An attorney may be able to help minimize consequences such as:

• Loss of professional licenses and debarment from state and local contracts
• Difficulties obtaining business financing in the future
• Exclusion from industry groups and associations
• Reputational damage and loss of customers
• Restricted international travel due to criminal record

In some cases, expungement of criminal records may be possible after a period of time to remove obstacles resulting from a conviction. Lawyers can also advise on rebuilding credit, improving search engine results, and reputation repair strategies.

A Team Approach to Your Defense

Facing PPP or EIDL fraud charges can be overwhelming. The most prudent step is engaging an experienced federal criminal defense attorney who can objectively assess your situation, advise on risks, and build the strongest case possible. A skilled lawyer will also coordinate with financial experts, accountants, technical consultants, and other professionals to cover all bases.A team approach combining legal advocacy and financial strategizing offers the best chance of success. With an effective defense, it may be possible to avoid criminal prosecution, minimize penalties, and move forward.