Criminal Defense Lawyers

Tucson PPP – SBA – EIDL Loan Fraud Lawyers

The COVID-19 pandemic brought unprecedented government assistance to small businesses across America. In Tucson, Arizona, business owners eagerly applied for loans and grants from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program administered by the Small Business Administration (SBA) . While these programs provided a lifeline for many legitimate businesses impacted by the pandemic, some individuals took advantage of the rushed loan process to commit fraud and embezzle millions of dollars. Now, as the dust settles and the SBA reviews loan applications, many Tucson business owners are finding themselves accused of PPP or EIDL fraud. If you are facing civil or criminal charges related to an SBA loan, it is critical to consult an experienced white collar defense attorney as soon as possible.

Overview of PPP and EIDL Programs

The Coronavirus Aid, Relief, and Economic Security (CARES) Act established the PPP and expanded the existing EIDL program in March 2020. The PPP provided potentially forgivable loans to help cover payroll, rent, utilities and other expenses during COVID-19 shutdowns and slowdowns. The long-standing EIDL program offered low-interest loans and grants to businesses affected by declared disasters. In 2020, EIDL expanded to provide loans specifically for losses caused by the pandemic. The SBA approved over 11 million PPP loans totaling nearly $800 billion nationwide. In Arizona, over 114,000 PPP loans worth $14.7 billion were distributed. The EIDL program loaned $197 billion as of January 2021, plus $20 billion in grants. With so much money flowing so quickly, oversight and verification understandably took a backseat to getting funds into the hands of struggling business owners. However, now the SBA is circling back to audit PPP and EIDL loans for potential fraud.

Common Types of Alleged PPP and EIDL Fraud

In the haste to distribute pandemic relief funds, the SBA’s internal controls were weakened or bypassed completely. This created an environment ripe for abuse by unscrupulous applicants. Some common fraudulent activities alleged in PPP and EIDL cases include:

• Submitting multiple loan applications with fake, stolen or synthetic identities
• Using fabricated documents like payroll records, tax forms or identity documents
• Lying on applications about number of employees, payroll expenses, cost of goods sold or other figures to maximize loan amount
• Applying for and receiving duplicate PPP and EIDL loans for the same business expenses
• Using PPP funds for personal purchases instead of approved business expenses like payroll
• Failing to disclose criminal history or pending charges to obtain EIDL loans
• Colluding with lenders or insiders to facilitate fraudulent loans

Some indicators of potential fraud according to the SBA Office of Inspector General include:

• Businesses formed after February 2020 receiving PPP loans
• Multiple businesses operating from a residential address
• Applicants opening bank accounts immediately before applying for loans
• Businesses that never filed payroll tax forms suddenly reporting large payroll numbers

Consequences of PPP or EIDL Loan Fraud

Those caught committing fraud in PPP or EIDL loan applications face severe civil and criminal penalties. On the civil side, the SBA may sue borrowers to recover loan funds obtained through fraudulent representations. You could be ordered to repay the full loan amount, plus interest, fees and triple damages in some cases.Criminal prosecution is also a real danger, since PPP and EIDL fraud violates federal laws against wire fraud, bank fraud and making false statements. Those convicted could face:

• Up to 30 years in federal prison
• Massive fines up to $1 million
• Forfeiture of assets obtained with fraudulent loan proceeds
• Restitution to the government
• 5 years probation

Defendants in some of the first PPP fraud cases have already received stiff sentences, including 30 months, 57 months and over 5 years in federal prison.

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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Finding an Experienced SBA Fraud Lawyer

If you are contacted by SBA investigators or charged criminally for alleged PPP or EIDL fraud, consulting an attorney should be your first call. An experienced federal white collar defense lawyer can carefully analyze the facts of your case and determine the best defense strategy. For example, we may be able to argue:

• You acted in good faith when applying for pandemic relief loans
• Any incorrect information was an honest mistake, not intentional deception
• You were entitled to the full loan amount based on your business circumstances
• You used the funds for legitimate purposes

In civil SBA audits and lawsuits, an attorney can negotiate with the government to minimize penalties and avoid criminal prosecution. If criminal charges cannot be avoided, we will aggressively defend your rights in court and seek the best possible outcome under the circumstances.Every case is different. To discuss your situation in a free and confidential consultation, contact the Tucson white collar defense attorneys at [Firm Name] by calling [Phone] or reaching out online. With an impressive record of success defending complex fraud allegations, we have the experience to protect your interests in SBA loan investigations and prosecutions. Don’t wait to seek experienced legal counsel – call our office today.

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