dallas ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers. We’re a second-generation law firm managed by our lead attorney, with over 40 years of combined experience handling federal criminal defense cases nationwide. If you’re reading this, there’s a good chance you received a letter from the SBA, got contacted by federal agents, or heard that investigators are asking questions about your business loans. PPP and EIDL loan fraud investigations in Dallas are moving fast in 2025 – and the stakes couldn’t be higher.

Federal prosecutors in the Northern District of Texas have made pandemic loan fraud a priority. They’re not just going after obvious scammers with fake businesses. They’re scrutinizing legitimate business owners who made mistakes on applications, who inflated payroll numbers slightly, who used funds for purposes that weren’t quite covered. The difference between a paperwork error and wire fraud can seem thin – but it determines whether you face prison time.

Why Dallas Business Owners Are Getting Charged

The SBA distributed billions in emergency funding through PPP and EIDL programs. In Dallas alone, thousands of businesses received loans. Now federal investigators – working with the SBA Office of Inspector General, FBI, and IRS Criminal Investigation – are conducting audits, matching loan applications against tax returns, comparing payroll records against what you claimed.

What gets people charged? You submitted payroll records showing 20 employees when you actually had 12. You claimed your business was operational in February 2020 when it didn’t start until April. You used EIDL funds to pay personal credit cards instead of business expenses. You certified you hadn’t received other government assistance when you had. These aren’t hypothetical – these are the actual allegations we see in Dallas cases.

Federal prosecutors treat this as wire fraud under 18 U.S.C. § 1343, bank fraud under 18 U.S.C. § 1344, or making false statements under 18 U.S.C. § 1001. Wire fraud alone carries up to 20 years in federal prison. Bank fraud carries up to 30 years. Even if the loan amount was relatively small – say $50,000 – the exposure is massive because it’s federal court and sentencing guidelines calculate based on intended loss, not actual loss.

The Timeline That Catches People Off Guard

Most Dallas defendants we work with say the same thing: they didn’t realize there was a problem until agents showed up or they received a target letter. The investigation phase happens quietly. SBA auditors flag your file. They refer it to the Office of Inspector General. Investigators pull your bank records, talk to your employees, review your tax returns for the past five years. This can take months or over a year.

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

By the time you’re contacted, they’ve already built much of their case. That’s why your response in those first conversations matters so much. Talking to investigators without a lawyer – even if you think you’re just “clearing things up” – gives them statements they’ll use against you. We’ve seen Dallas business owners accidentally admit to elements of fraud charges while trying to explain innocent mistakes.

Legal Scenario: What Would You Do?

Scenario

You submitted a PPP loan application during COVID and now realize some employee count numbers may have been inaccurate.

Could this be considered fraud?

Attorney's Answer

Inaccuracies in PPP applications can trigger federal fraud charges carrying up to 20 years in prison. However, honest mistakes differ from intentional misrepresentation. Documentation of your good-faith efforts is critical to your defense.

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

What Happens When You’re Under Investigation

Federal agents might call you directly asking to “discuss your loan application.” They might show up at your business or home. You might receive a grand jury subpoena for documents. Or you could get a target letter from the U.S. Attorney’s Office stating you’re under investigation and inviting you to make a statement.