boston ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers. We’re a second-generation law firm managed by our lead attorney – who earned his Bachelor of Science in Criminal Justice from Northeastern University right here in Boston. We have over 40 years of combined experience defending federal criminal cases, and we understand the unique landscape of PPP and EIDL fraud prosecutions in Massachusetts.

The District of Massachusetts has been aggressive in prosecuting pandemic fraud cases. Federal prosecutors in Boston have secured dozens of indictments against defendants accused of submitting fraudulent PPP and EIDL applications. These cases carry serious prison time – we’re talking 10, 15, even 20 years if you’re convicted on multiple counts.

Boston’s PPP and EIDL Fraud Landscape

Massachusetts businesses received billions in PPP and EIDL funding during the pandemic. Most applications were legitimate, but federal investigators estimate that millions went to fraudulent schemes. Restaurant owners who inflated employee counts, tech entrepreneurs who fabricated businesses, contractors who submitted false payroll records – all are now facing federal scrutiny.

Take a typical case we’ve seen. A Dorchester business owner applies for PPP loans for three different companies – one real, two shells. Submits payroll documents showing 60 total employees across all three businesses. Reality? He had 8 employees total. Gets approved for over $700,000 in PPP funds. Spends it on a house down payment, luxury vehicles, personal debt. FBI tracks the money through bank records. He’s now facing multiple wire fraud counts.

Or consider EIDL fraud – someone in Cambridge claims to operate a consulting business with $800,000 in annual revenue. Applies for an EIDL loan, receives $150,000 plus a $10,000 advance. The business barely existed – minimal revenue, no real operations. SBA investigators audit the loan, discover the fraud, refer it to federal prosecutors.

How Federal Investigations Work in Boston

Most investigations start with SBA Office of Inspector General data analytics. Sophisticated software flags suspicious applications – businesses that didn’t exist before 2020, multiple applications from the same IP address, loans deposited into newly opened accounts.

Once flagged, FBI agents in Boston start investigating. They subpoena your bank records, pull your tax returns, review your Massachusetts DOR filings. They interview your employees, your accountant, your business partners. They compare what you told the SBA against what you reported to the IRS. Discrepancies become evidence of fraud.

Some cases start with whistleblowers. A disgruntled employee reports that you inflated numbers. A competitor tips off investigators. A bank compliance officer files a Suspicious Activity Report after noticing unusual transactions. Once you’re on the government’s radar, the investigation moves forward systematically.

Federal Charges in Massachusetts PPP Cases

Wire fraud under 18 U.S.C. § 1343 is the most common charge. Every electronic communication related to the fraud is a separate count. Submitted your application online? Wire fraud. Received funds via ACH transfer? Another count. Sent an email with supporting documents? Another count. Prosecutors stack these charges – indictments often include 15-20 wire fraud counts for a single loan application.

DEFENSE TEAM SPOTLIGHT

Todd Spodek

Lead Attorney & Founder

Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

NY Bar Admitted Multi-State Licensed Federal Courts

Meet the Full Team

Legal Scenario: What Would You Do?

Scenario

You received a PPP loan for your Boston restaurant during COVID-19, but your accountant inflated payroll numbers on the application without your knowledge. Now you've received a target letter from the U.S. Attorney's Office in the District of Massachusetts indicating a federal grand jury is investigating your loan.

Can I be charged with PPP fraud even though my accountant prepared the fraudulent application, not me?

Attorney's Answer

Yes, under 18 U.S.C. § 1344 (bank fraud) and 18 U.S.C. § 1014 (false statements to a financial institution), prosecutors in the District of Massachusetts can charge you if they believe you knew or should have known the application contained false information — even if someone else prepared it. The SBA Office of Inspector General has been aggressively pursuing PPP and EIDL fraud cases, and penalties can include up to 30 years in prison and $1 million in fines for bank fraud alone. However, a strong defense can challenge the government's ability to prove you had actual knowledge of the misrepresentations, and early intervention by experienced counsel can sometimes resolve these matters before indictment through voluntary disclosure or cooperation agreements.

This is general information only. Contact us for advice specific to your situation.

Each wire fraud count carries up to 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 adds up to 30 years per count if your fraud involved a financial institution. False statements under 18 U.S.C. § 1001 adds 5 years per count. Money laundering charges under 18 U.S.C. § 1956 add another 20 years if you moved funds between accounts or made large purchases.

These sentences can run consecutively. You’re not looking at 20 years total – you could be looking at 40, 60, 80 years if convicted on multiple counts and sentenced consecutively. That’s why effective legal representation matters so much.