Seattle PPP Loan Fraud Lawyers

Seattle PPP Loan Fraud Lawyers

You work in Seattle tech. Maybe you were at Amazon. Maybe Microsoft. Maybe one of the hundreds of startups that define this city. And in 2020, when everything shut down, you applied for a PPP loan for your consulting LLC. The side business you’d been running for years. The one with the fuzzy contractor relationships.

That was five years ago. You haven’t thought about it since. Until you saw the news about Mukund Mohan – a former director at both Amazon and Microsoft – getting sentenced to 2 years in federal prison for PPP fraud. Someone with that background. Those connections. That level of sophistication. And he still got caught.

Welcome to Spodek Law Group. Our goal is to give you real information about PPP fraud defense in Seattle – the information other law firm websites won’t share. We represent business owners across the Pacific Northwest who are facing federal investigations, and we believe you deserve to understand exactly what your up against before making any decisions.

The Western District of Washington covers Seattle, Bellevue, Tacoma, and the entire Puget Sound region where tech companies and startups scrambled for pandemic relief in 2020. And the cases that have been prosecuted tell a story that should terrify anyone who submitted an application with numbers that werent entirely accurate.

If your reading this because someone you know got contacted by investigators – or because you recieved something from the SBA asking for documentation – you need to understand what happens next. And what you think you know about Seattle’s tech-friendly reputation is probly irrelevant here.

A Former Amazon And Microsoft Director Thought He Could Outsmart The IRS

Heres the first thing Seattle business owners dont understand about PPP fraud: tech sophistication dosent protect you. It makes you a bigger target.

Mukund Mohan was 48 years old. He lived in Clyde Hill, one of the wealthiest neighborhoods in Washington State. He had been a director at Amazon. Then a director at Microsoft. The two companies that define Seattles tech identity. He built a career at the most sophisticated technology organizations in the world.

And then he submitted 8 fraudulent PPP applications seeking $5.5 million.

Heres the part that makes it worse: he didnt just exaggerate an existing buisness. He bought a shell company specificaly to commit the fraud. Mukund Mohan purchased Mahenjo Inc. in May 2020. At the time he purchased it, the company had no employees. No buisness activity. Nothing. He acquired an empty shell.

Then he submitted PPP applications claiming Mahenjo had dozens of employees and paid millions in payroll. He altered incorporation documents. He fabricated tax filings. Every piece of supporting documentation was fake.

Five of his 8 applications were approved. He obtained nearly $1.8 million in fraudulent proceeds.

And then federal investigators moved. They seized all but $16,000 of his money almost immediatley. The sophisticated tech executive who thought he could outsmart the system watched his scheme collapse within weeks.

Mukund Mohan was sentenced to 2 years in federal prison. $1.78 million in restitution. $100,000 fine. His reputation destroyed.

If a former Amazon and Microsoft director couldnt outsmart federal investigators, neither can you. The IRS Criminal Investigation unit has better data analytics then any tech company.

The Doctor Whose Testimony Was “One Of The Worst Performances”

Dr. Eric Shibley took an oath when he became a physician. First, do no harm. A commitment to honesty, integrity, and the wellbeing of others.

Then he submitted 26 fraudulent PPP applications. And 13 EIDL applications. 39 applications total seeking $3.5 million from pandemic relief programs.

The applications used buisnesses that didnt actualy do anything. Buisnesses that didnt qualify for COVID-19 relief. He misrepresented employee counts. He fabricated payroll expenses. He concealed his own criminal history. Every application supported by fake tax documents and the names of purported employees who never existed.

His medical license was suspended in 2020.

But heres the part that makes Dr. Shibley’s case different from every other PPP fraud prosecution in Seattle: he went to trial. And he testified.

U.S. District Judge John C. Coughenour had this to say about that testimony: “I have to say it was one of the worst performances of a criminal defendant. There was very little willingness to adhere to the truth while testifying.”

Think about what that means. A doctor – someone whose entire profession depends on credibility – took the stand and lied so badly that the judge specificaly noted it at sentancing. A medical professional who spent years building trust with patients destroyed himself with lies under oath.

Dr. Shibley was convicted of 7 counts of wire fraud, 3 counts of bank fraud, and 5 counts of money laundering. He was sentenced to 4 years in federal prison. $1.43 million in restitution.

The longest sentence for individual PPP fraud in the Western District of Washington. Given to a doctor who thought his professional status would protect him.

She Recruited 50 People From Her Community To Commit Fraud

Paradise Williams didnt just commit PPP fraud herself. She built an organization.

From June 2020 to February 2022, Williams personally submitted over 125 fraudulent applications. Not a dozen. Not fifty. One hundred and twenty-five. Applications for PPP. For EIDL. For unemployment benefits. For emergency rental assistance. Every major pandemic relief program became a target.

But heres the part that makes Paradise Williams’ case unique: she recruited. More than 50 associates. People from her community. Friends. Aquaintances. People looking for easy money during a desperate time.

She enlisted them to pose as fake tenants. Fake landlords. Fake small buisness owners. Every associate became a co-conspirator. Every person she recruited became evidence against her.

The fraud ring sought to steal $6.8 million. They obtained $3.3 million. Paradise Williams personaly recieved more then $2 million of that.

And she spent it. Cosmetic surgery. A Lexus sedan. A Range Rover SUV. Jewelry. Designer goods. Lavish trips. Every purchase documented. Every receipt filed in evidence.

Five of her codefendants were convicted. D’Arius Jackson got 3 years. Tia Robinson got 18 months. The others awaiting sentancing.

Paradise Williams herself was sentenced to 5 years in federal prison. $2.79 million restitution to Treasury. $512,730 restitution to SBA. She forfeited the Lexus. She forfeited the Range Rover. Everything she bought with fraud money – gone.

At sentancing, U.S. District Judge John H. Chun said: “These were serious and terrible crimes. [Williams and her co-defendants] stole from programs designed to help members of their community during the pandemic.”

Heres what Paradise Williams’ case teaches you: the people you recruit become witnesses. Every associate you bring in knows your name, your methods, your face. When prosecutors start making deals, those 50 people are 50 potential cooperators.

He Bought A Shell Company Specifically To Defraud The Government

Lets go back to Mukund Mohan because the shell company acquisition pattern is something every Seattle defendant needs to understand.

Mohan didnt exaggerate his existing buisness. He didnt inflate employee counts at a company he’d been running for years. He purchased Mahenjo Inc. in May 2020 – right before submitting his PPP applications.

At the time of purchase, Mahenjo had no employees. No buisness activity. Nothing. It was a paper entity with no substance.

Then Mohan submitted applications claiming Mahenjo had dozens of employees and millions in annual payroll. The incorporation documents he submitted were altered. The tax filings were fabricated. Every piece of documentation was manufactured.

The acquisition timing itself became evidence of intent.

Prosecutors didnt need to prove he exaggerated. They didnt need to argue about contractor classifications or payroll calculations. They just needed to show that he bought an empty shell in May 2020, claimed it had employees in June 2020, and cashed fraudulent checks in July 2020.

The timeline told the story. The shell company acquisition – the moment he purchased Mahenjo – became the centerpiece of the case.

If you formed or acquired a company specificaly to apply for PPP loans, the formation or acquisition itself is evidence against you.

Todd Spodek has represented clients whose corporate timelines became the prosecution’s primary exhibit. The company formed in April 2020. The application submitted in May 2020. The loan approved in June 2020. Every date on every document telling the same story.

Your PPP Spending Is The Case Against You

Paradise Williams spent $2 million of fraud proceeds. Lets break down what that spending looked like:

Cosmetic surgery. Not medical treatment – enhancement procedures paid with stolen pandemic relief funds.

A Lexus sedan. Purchased during a pandemic when legitimate buisnesses were struggling to survive.

A Range Rover SUV. Two luxury vehicles for one person while emergency programs ran out of money.

Jewelry. Designer goods. Lavish trips. Every luxury purchase documented in bank records and credit card statements.

At sentancing, Williams forfeited both vehicles. The cars she thought she owned – the government took them back.

Heres what Seattle defendants dont anticipate: your spending pattern during the pandemic becomes the prosecution’s exhibit list. If you claimed PPP money was for payroll and then bought a Range Rover, prosecutors will show the jury that Range Rover purchase. If you claimed it was for buisness expenses and then paid for cosmetic surgery, that medical bill goes into evidence.

The goverment dosent just take your money back. They use your spending as proof that you knew what you were doing was wrong.

Joseph Freeman’s case shows a different version of this pattern. He created a payroll service after recieving PPP funds. But the people on his “payroll” werent employees. They were friends. Family members. People he personaly owed money to.

He transformed the Paycheck Protection Program into a personal debt repayment system. The disbursement list – every name, every payment – became the prosecution’s evidence.

The judge at Freeman’s sentancing said: “Other people who were in the same situation chose to suffer those circumstances rather than commit fraud on the Paycheck Protection Program… I think it is important to understand you cannot steal from the government.”

What Seattle Sentences Actually Look Like In 2024-2025

Lets talk about real sentences. Not hypotheticals. Actual outcomes from Western District of Washington federal courts.

Mukund Mohan (Clyde Hill) – 2 years federal prison. $1.78 million restitution. $100,000 fine. Former Amazon and Microsoft director. Bought shell company to commit fraud.

Dr. Eric Shibley (Seattle) – 4 years federal prison. $1.43 million restitution. 39 fraudulent applications. Judge called his testimony “one of the worst performances.” Medical license suspended.

Paradise Williams (Seattle) – 5 years federal prison. $3.3 million restitution. 125 applications. 50+ associates. Forfeited Lexus and Range Rover.

D’Arius Jackson (Seattle) – 3 years federal prison. Co-defendant in Williams scheme.

Tia Robinson (Seattle) – 18 months federal prison. Co-defendant in Williams scheme.

Joseph Freeman (Redmond) – 1 year federal prison. $426,666 net loss. Created fake payroll for friends and family.

Danni Walker (Seattle) – 1 year home confinement + 3 years probation. $500,000 fraud. 6 fraudulent applications. Age 62.

See the pattern? 1 to 5 years is the range for Seattle PPP fraud. The differences come from fraud amount, number of applications, role in the scheme, and whether you cooperated or went to trial.

Dr. Shibley got the longest sentence because he went to trial, testified badly, and submitted 39 applications. Paradise Williams got 5 years because she organized a 50-person fraud ring. Freeman got 1 year because his loss was lower and he pleaded guilty.

The sentancing brackets are fairly predictable once you understand them. Under $500,000 with guilty plea: 1-2 years. $500,000 to $2 million: 2-4 years. Over $2 million or fraud ring: 4-5 years. Trial penalty adds 1-2 years minimum.

The Professional License You’ll Lose Before The Prison Sentence

Dr. Shibley’s medical license was suspended in 2020. Before his trial. Before his conviction. Before his sentance.

Thats the timeline professionals need to understand. The license suspension comes first. The professional consequences arrive before the criminal consequences.

If your a licensed professional in Washington State – doctor, lawyer, accountant, financial advisor, real estate broker – your licensing board has reporting requirements. Criminal charges trigger review. Federal indictments trigger suspension. You dont need to be convicted to lose your license.

And heres the part that makes it worse: professional licenses have lower standards of proof. Criminal convictions require proof beyond a reasonable doubt. License revocations often require only preponderance of the evidence – more likely then not.

You can be acquited of criminal charges and still lose your professional license. The conduct that didnt meet criminal standards can still violate professional ethics rules.

Dr. Shibley lost his medical license. Then lost his trial. Then lost his freedom. The license suspension was just the first domino.

At Spodek Law Group, we’ve represented licensed professionals facing this exact cascade. The criminal investigation starts. The licensing board gets notified. The suspension comes while your still fighting the underlying charges. By the time you get to sentancing, your career is already over.

The Trial Penalty: Why Dr. Shibley Got The Longest Sentence

Dr. Shibley got 4 years. Paradise Williams got 5 years. But Williams ran a 50-person fraud ring that stole $3.3 million. Shibley was one person who submitted 39 applications.

Why did a solo fraudster get nearly the same sentence as a fraud ring leader?

Because Shibley went to trial.

When you plead guilty to federal PPP fraud, you get credit for “acceptance of responsibility.” Thats a reduction in your sentancing guidelines. You save the goverment the cost and burden of trial. You demonstrate that you understand what you did was wrong.

When you go to trial and lose – which happens more then 90% of the time in federal court – you get none of those reductions. You face maximum exposure. And if you testify badly, like Shibley did, the judge takes note.

Joseph Freeman got 1 year. He pleaded guilty. His fraud amount was lower, but more importantley, he didnt force prosecutors to prove their case.

Shibley forced a trial. He took the stand. He lied – so badly the judge called it “one of the worst performances of a criminal defendant.” He got 4 years.

Thats the trial penalty. Thats the cost of fighting when the evidance is overwhelming. Thats why defense attorneys almost always reccommend negotiating unless theres a genuine defense that could work.

If your thinking about fighting PPP fraud charges in Seattle, you need to understand these numbers. Freeman’s 1 year versus Shibley’s 4 years. Same district. Same judges. Different approaches. Dramaticaly different outcomes.

When Spodek Law Group Takes Your Call

You call 212-300-5196. Someone answers. Not a receptionist. Someone who can actualy discuss your situation.

We understand that if your reading this, your probly terrified. Maybe you havent slept in weeks. Maybe you just learned that someone connected to your PPP application is under investigation. Maybe the FBI left a buisness card at your Bellevue office. Maybe you recieved a letter from the SBA asking for documentation you know you cant produce.

Heres what working with Spodek Law Group on a Seattle PPP fraud case actualy looks like:

First, we understand your specific situation. Not generalities. Your loan amount. Your application. Who prepared it. What companies you used. What representations you made. Whether you acquired or formed entities to apply.

Second, we identify where you actualy stand. Is there an active investigation? Has anyone connected to your application been contacted? Are there cooperating witnesses? If you recruited others – are any of them talking? What physical evidance exists?

Third, we explore your options. Should you be proactive? Should you wait? Is cooperation the right strategy? Is there a legitimate defense based on your actual circumstances? What are the realistic outcomes given Seattle’s current sentancing patterns?

Fourth, we give you a clear picture of what your facing. Best case. Worst case. What factors influence where you fall on that spectrum. What you can do – right now – to improve your position.

This isnt about making promises we cant keep. Its about replacing panic with information. When you understand what your actualy facing, you can make rational decisions instead of freezing into inaction or making it worse.

Todd Spodek built Spodek Law Group on one principle: clients deserve the truth, even when its uncomfortable. Were not going to tell you everything will be fine if it wont. Were going to tell you exactly what we see and help you navigate it.

If your a Seattle business owner with questions about a PPP loan – whether thats a formal investigation or just growing anxiety about an application you submitted five years ago – call us at 212-300-5196. The consultation is free. The cost of waiting isnt.

A former Amazon and Microsoft director got 2 years. A doctor got 4 years. A fraud ring leader got 5 years. The Western District of Washington is not going easy on PPP fraud.

The goverment has years to prosecute you. Your window to protect yourself is much shorter then you think.