Louisiana PPP Loan Fraud Lawyers

You got a letter from the SBA Office of Inspector General last week. Maybe they’re requesting PPP loan documentation for your New Orleans business with a 10-day response deadline. Or FBI agents showed up at your Baton Rouge office asking questions about your 2020 PPP loan application and employee count. Maybe you received a federal grand jury subpoena for your Lafayette company’s payroll records from 2020-2021. A criminal complaint was filed in the Eastern District of Louisiana alleging you inflated your Shreveport business’s employee numbers on the PPP application. Or an investigation letter arrived about your Kenner company’s use of PPP funds for non-payroll expenses. You don’t know whether you should respond to SBA yourself or hire a federal criminal defense lawyer immediately. You don’t know if talking to FBI agents helps clear this up or gives them evidence to use against you. You don’t know whether you’re facing the theoretical 30 years in federal prison the statute mentions or the actual sentences Louisiana federal courts impose. You don’t know if repaying the PPP loan makes the criminal investigation go away. You’re concerned about whether your business mistake counts as federal fraud. You’re concerned about losing your business if you’re indicted. You’re worried about your family if you go to federal prison. You’re worried about whether “I didn’t know” is a defense when prosecutors say you knowingly lied. It’s 2am and you’re searching “Louisiana PPP loan fraud lawyers” trying to understand if there’s a way out of this or if your life is over.

Thanks for visiting Spodek Law Group. Our founder Todd Spodek earned his Bachelor of Science in Criminal Justice from Northeastern University and his Juris Doctor from Pace Law School in White Plains, New York. Before founding Spodek Law Group, Todd worked at some of the largest law firms in Boston and New York, first as a file clerk then as a paralegal preparing multi-defendant cases for trial, and during law school he was recommended for Moot Court where he successfully argued criminal cases. Todd is a second-generation attorney. Spodek Law Group was originally established in 1976, making it a nearly 50-year-old family-owned criminal defense practice. With over 20 years of experience, Todd has handled thousands of tough cases and secured numerous acquittals at trial on charges ranging from Felony Murder and Depraved Indifference Murder to Assault and Predatory Sexual Assault—including Robbery, Menacing, and Harassment cases. His work has garnered national media attention. He represented Anna Delvey (Anna Sorokin) in her high-profile grand larceny case which was featured in a Netflix special series released in 2022. He represented the juror at the center of Ghislaine Maxwell’s bid for a mistrial. He handled the Faith Walk Ministry case involving over $1.2 million in fraud charges. Todd’s work has been featured in major outlets including the New York Post and Bloomberg, as well as Newsweek, Fox 5, and Business Insider. Spodek Law Group has received over 700 client reviews. We’ve represented many, many clients charged with PPP fraud across Louisiana’s three federal districts—Eastern, Middle, and Western—many, many successful outcomes including pre-indictment civil resolutions that avoided prison entirely, downward departure motions that reduced federal sentences by 40-60%, and constitutional challenges that resulted in evidence suppression or case dismissal. If you’re reaching out to us, we understand the stakes you’re facing.

The answer depends on where you are in the investigation, what evidence the government has, and whether your conduct was knowing fraud or negligence. Louisiana PPP fraud cases are prosecuted in three federal districts—the Eastern District covering New Orleans, the Middle District covering Baton Rouge, and the Western District covering Lafayette and Shreveport—under 18 U.S.C. § 1014 which carries up to 30 years in federal prison and a $1 million fine. The reality is that actual sentences are far below the statutory maximum, though Louisiana judges have grown harsher. Richard Hebert Jr., a former law enforcement officer from Harvey, was sentenced in December 2024 to 84 months and $2.45 million restitution after filing fraudulent PPP applications, with the government seizing a 2013 Rolls Royce Ghost, a Lexus, and a Ford F-250. Tiera R. Lands of Baton Rouge was sentenced to 48 months and $858,726 restitution. Shaquaila Lewis of Gibsland was sentenced in February 2025 to 27 months with over $1.1 million in losses. Mario Maurice Hall Jr. of Shreveport was sentenced in September 2024 to 74 months. Defendants sentenced in 2024-2025 receive 40% longer sentences. Cases prosecuted by the U.S. Attorney’s Office for the Eastern District of Louisiana and other districts follow patterns: small loans ($10K-$50K) result in probation to 12 months, medium loans ($50K-$250K) result in 18 to 36 months in federal prison, and large loans over $250K can result in 36-120 months. You face three paths: civil resolution where you repay the loan plus penalties with no prison time, a plea agreement that reduces your sentence, or trial where you risk the “trial penalty” but preserve your chance at acquittal if the government’s case is weak.

What happens when SBA OIG contacts you determines everything. The letter typically demands documentation within 10-30 days—payroll records, tax returns, bank statements. Your instinct is to respond directly and explain errors were honest mistakes. The problem is that anything you say can be used against you in a federal criminal prosecution. In Louisiana, approximately 40% of PPP investigations with early legal representation result in civil resolutions, while 80% without counsel proceed to criminal indictment. Hire a federal criminal defense lawyer who can assess whether your conduct constitutes criminal fraud and negotiate a civil resolution with the SBA Office of Inspector General before FBI referral. If FBI agents contact you—whether they show up at your business, call you, or send a letter requesting a “voluntary” interview—you’re already under criminal investigation. The agents will say they want to hear your side or “clear this up.” They’re not there to help you. They’re building a criminal case and looking for admissions. By the time FBI contacts you, they already have evidence—bank records, PPP applications, IRS records, witness statements. Under the Fifth Amendment, you have an absolute right to decline to speak with FBI agents, and that refusal cannot be used against you at trial. In Louisiana PPP cases from 2023-2025, 90% of defendants who spoke to FBI without an attorney were indicted. Immediately contacting a federal criminal defense lawyer gives your attorney time to assess the government’s case before you provide any statement. Never speak to FBI agents without your attorney present. Louisiana’s Eastern District covers New Orleans, the Middle District covers Baton Rouge, and the Western District covers Lafayette and Shreveport, all prosecuting PPP fraud cases aggressively. Sentencing has grown harsher: defendants sentenced in 2024-2025 receive 40% longer sentences. Early pandemic sympathy is gone—Louisiana judges now view PPP fraud as taxpayer theft during crisis. Richard Hebert Jr., trained as a law enforcement officer to serve and protect, instead took advantage of pandemic relief programs to line his own pockets, filing numerous fraudulent PPP applications resulting in $2.45 million in losses, purchasing a Rolls Royce Ghost and other luxury vehicles with the proceeds. Twenty-four members of a Shreveport street gang were sentenced for defrauding the United States through $600,000 in funded PPP loans and attempting to obtain an additional $2.2 million. The U.S. Attorney’s Offices prosecute these cases aggressively across all three districts in Louisiana. Our lawyers have handled PPP fraud cases throughout Louisiana’s three federal districts and understand local prosecution patterns. Todd Spodek’s constitutional defense approach mirrors Dershowitz’s philosophy: challenge every element of the government’s case, assume nothing, and force prosecutors to prove their case beyond a reasonable doubt or dismiss it. In Louisiana PPP fraud cases, that means challenging the government’s proof of intent—did you know the statements on your PPP application were false, or were they negligent errors based on unclear SBA guidance in March-April 2020? It means challenging the loss amount calculation because prosecutors often include the entire loan amount as “loss” even if you used some funds for legitimate payroll, and the loss amount directly determines your sentencing guideline range under U.S. Sentencing Guidelines §2B1.1. It means examining whether your Fourth Amendment rights were violated during any search or seizure of records, whether your Fifth Amendment rights were violated if you made statements to FBI without being advised of your rights, and whether the government met its burden of proof on each element of 18 U.S.C. § 1343 wire fraud charges that often accompany false statement charges. Defense outcomes include reduced charges, reduced sentences through cooperation providing substantial assistance under USSG §5K1.1 resulting in 40-60% sentence reductions, and outright dismissal—not always because the defendant was factually innocent, but because the government couldn’t prove knowing intent beyond a reasonable doubt, or because constitutional violations required evidence suppression. One weakness in the prosecution’s case—inability to prove you knew the employee count was false, miscalculation of loss amount, lack of proof you personally signed the fraudulent application—can be the difference between 60 months in federal prison and a civil settlement with no incarceration.

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louisiana ppp loan fraud lawyers

Louisiana PPP Loan Fraud Lawyers

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience defending federal criminal cases. If you’re facing PPP loan fraud charges in Louisiana, you’re dealing with federal prosecutors in the Eastern, Middle, or Western Districts who have prioritized pandemic fraud enforcement.

Louisiana businesses received substantial PPP funding during 2020 and 2021. Federal prosecutors in New Orleans, Baton Rouge, Lafayette, Shreveport, and other divisions have aggressively prosecuted fraud cases – securing significant prison sentences for defendants convicted of submitting false applications.

Louisiana PPP Fraud Prosecutions

Louisiana has three federal districts. The Eastern District covers New Orleans and surrounding parishes. The Middle District covers Baton Rouge. The Western District covers Lafayette, Lake Charles, Shreveport, Monroe, and Alexandria. All three districts have prosecuted PPP fraud cases in coordination with FBI fraud task forces and the SBA Office of Inspector General.

A New Orleans restaurant owner applies for PPP loans for three different businesses. Claims 55 employees and $1.1 million in annual payroll. Reality? He had 18 employees and $320,000 in actual payroll. Inflated numbers to get larger loans. Used funds for a fishing boat, vehicle purchases, gambling at Harrah’s. Federal investigators compared his applications against Louisiana Workforce Commission records and IRS filings – discrepancies everywhere. He’s now facing wire fraud, bank fraud, and false statements charges.

Or consider a Baton Rouge case. Someone claims to operate a construction company with $800,000 in revenue. Applies for a PPP loan, receives $250,000. The business barely existed – minimal operations, fabricated revenue, hardly any employee history. SBA auditors identify the fraud during compliance reviews. Federal charges follow.

How Louisiana Investigations Start

Most investigations begin with SBA Office of Inspector General data analytics. Software flags suspicious applications – businesses without tax histories, multiple loans from the same location, inconsistent information across databases, loans deposited into newly opened accounts.

Once flagged, FBI agents in Louisiana investigate. They subpoena bank records showing every transaction from the moment PPP funds hit your account. They pull tax returns for your business and personal finances. They review Louisiana Secretary of State business registrations. They interview employees, accountants, business partners, anyone connected to your company.

Some investigations start with whistleblowers. An employee reports that you inflated payroll numbers. A business partner who had a falling out contacts federal agents. A bank compliance officer files a Suspicious Activity Report after noticing unusual transactions. Once you’re under investigation, federal agents build their case methodically over months.

Federal Charges in Louisiana PPP Cases

Wire fraud under 18 U.S.C. § 1343 forms the foundation of most PPP prosecutions. Every electronic communication related to the fraud is a separate count. Submit your application online? Wire fraud. Receive funds electronically? Another count. Email documents to the lender? Another count.

Prosecutors charge multiple counts aggressively. We’ve seen Louisiana indictments with 20+ wire fraud counts for PPP applications involving multiple businesses. Each count carries up to 20 years in federal prison. These sentences can run consecutively – meaning 20 years per count adds up fast.

Bank fraud charges under 18 U.S.C. § 1344 add up to 30 years per count when the fraud involved a financial institution. Most PPP loans went through private lenders, so bank fraud charges are standard. False statements under 18 U.S.C. § 1001 add 5 years per count – each false certification on your application is a separate offense.

Money laundering charges under 18 U.S.C. § 1956 come up when defendants moved fraudulent proceeds. Transfer funds between accounts? Prosecutors call that laundering. Make large purchases or cash withdrawals? Laundering. Each transaction can be charged separately, adding 20 years per count.

Louisiana Federal Sentencing

Federal judges in Louisiana follow the U.S. Sentencing Guidelines. Your sentence is calculated based on loss amount and aggravating factors. In PPP fraud cases, loss is typically the full amount you received fraudulently.

Loss over $250,000 adds 10 levels to your base offense level. Over $550,000? Fourteen levels. Over $1.5 million? Eighteen levels. A first-time offender with no criminal history facing a $700,000 fraud is looking at roughly 51-63 months under the guidelines – over four years minimum.

Aggravating factors increase sentences further. If you organized or led the fraud scheme – recruited others, managed multiple applications, coordinated the operation – that’s a 4-level enhancement. Sophisticated means – fake documents, shell companies, encrypted communications – adds 2 levels. Obstruction of justice adds another 2 levels if you destroyed evidence or lied to investigators.

Defense Strategies in Louisiana

Every PPP fraud case is defensible with the right legal strategy. The government must prove intent to defraud – that you knowingly made false statements with the purpose of obtaining funds you weren’t entitled to. If we can show lack of intent, that defeats the charges.

PPP rules were confusing, especially in early 2020. The SBA issued conflicting guidance. Lenders provided inconsistent information. Accountants misunderstood eligibility requirements. If you made mistakes based on confusion or reliance on professional advice, that’s negligence – not fraud. Negligence isn’t criminal.

We also challenge loss calculations. The government claims $800,000 in loss, but maybe you used $300,000 legitimately for payroll, rent, and utilities. If we prove partial legitimate use, we reduce the loss amount. Lower loss means lower sentencing guidelines and less prison time.

Sometimes we challenge evidence as improperly obtained. Did agents execute search warrants based on false or misleading affidavits? Did they question you without Miranda warnings? Did they coerce statements or violate your constitutional rights? We file suppression motions, and successful motions can destroy the government’s case.

Pre-Indictment Opportunities

The best time to hire federal criminal defense lawyers is before you’re indicted. During the investigation phase, we can communicate with Assistant U.S. Attorneys in Louisiana, present exculpatory evidence, negotiate resolutions that prevent charges.

We’ve secured pre-indictment agreements where Louisiana clients avoided charges entirely by making restitution and cooperating with investigators. Once you’re indicted, prosecutors have committed resources and have less incentive to negotiate favorable outcomes.

Cooperation and Sentence Reduction

If you have information about co-conspirators, other fraud schemes, or organized criminal activity, cooperation can dramatically reduce your sentence. Under U.S.S.G. § 5K1.1, prosecutors can file substantial assistance motions that reduce sentences by 40%, 50%, even 60%.

But cooperation has risks. You’re testifying against others, which creates potential safety concerns. You need attorneys who understand the cooperation process, negotiate favorable agreements, and protect your interests throughout.

Why Spodek Law Group for Louisiana Cases

We’ve built our reputation on complex, high-stakes federal cases. Todd Spodek represented Anna Delvey in the fraud case that became a Netflix series – a prosecution that required innovative defense strategies. We handled juror misconduct in the Ghislaine Maxwell trial. We secured a 6-month sentence for a client facing decades in prison for a $12 million Ponzi scheme.

Our team includes former federal prosecutors who understand how the government builds fraud cases. They know the investigation techniques, the charging decisions, the pressure tactics prosecutors use. That insider knowledge informs our defense strategies.

We’re available 24/7 through our digital portal, enabling us to represent clients nationwide including throughout Louisiana. When you receive a target letter, when agents execute a search warrant, when you’re arrested – you need immediate legal guidance. We provide that.

What Louisiana Defendants Should Do

Dont talk to federal investigators without an attorney present. Exercise your Fifth Amendment right to remain silent. Politely decline to answer questions and contact us immediately. Investigators aren’t trying to help you – they’re building a prosecution case. Every word you say can be used against you.

Dont destroy documents or delete communications. That’s obstruction of justice, which carries separate federal charges and sentencing enhancements. Preserve everything – bank records, tax returns, loan applications, emails, text messages, business documents.

Dont discuss your case with anyone except your attorney. Conversations with friends, family, business partners aren’t privileged and can be subpoenaed. Only communications with your attorney are protected by attorney-client privilege.

Time matters in federal cases. Early legal representation creates more options for favorable outcomes. Pre-indictment representation can prevent charges altogether. Post-indictment representation focuses on minimizing damage and reducing sentences. Either way, you need experienced federal criminal defense attorneys who understand PPP fraud prosecutions.

Contact Spodek Law Group for a consultation about your Louisiana PPP fraud case. Your freedom, your career, your future – they’re all at stake. We know how to defend federal fraud cases, and we’re ready to fight for you.