El Paso PPP Loan Fraud Lawyers

You’re in El Paso thinking federal prosecutors are too busy with border cases to worry about pandemic loans from five years ago. Maybe you’re telling yourself that immigration enforcement, drug trafficking investigations, and cartel prosecutions take priority over small business owners who stretched the truth on a PPP application. The Western District of Texas has plenty to focus on that doesn’t involve you.

That assumption has a 286-month problem. That’s nearly 24 years in federal prison – the sentence Michael Fullerton just received for PPP fraud in this district. His wife got another 108 months. Combined, they’re serving more than 32 years for stealing pandemic relief funds.

Welcome to Federal Lawyers. Our goal is education first – helping you understand what the Western District of Texas actually looks like from the inside before you find out the hard way. our lead attorney has defended clients in federal courts across the country, including individuals facing pandemic fraud charges who assumed the government was focused elsewhere. The government wasn’t focused elsewhere. It was building cases that end with sentences measured in decades.

286 Months – What the Western District Calls Justice

Heres the number that should terrify anyone who took a questionable PPP loan in El Paso or anywhere else the Western District covers: 286 months. Thats what Michael Fullerton got for PPP fraud. Not 28 months. Not 86 months. Two hundred and eighty-six months in federal prison.

Let that land for a moment. Thats 23 years and 10 months behind bars. For pandemic loan fraud. In a district some people assume is too busy with border enforcement to care about financial crimes.

The Fullertons – Michael and his wife Tiffany – submitted six fraudulent PPP applications totaling more than $3.5 million. They actualy recieved about $3 million before the scheme collapsed. What did they spend it on? They tried to start a marijuana business in Oklahoma. They bought a motor home. Luxury watches. A boat. While small businesses were closing and employees were being laid off because legitimate relief wasnt reaching them, the Fullertons were shopping for toys with stolen pandemic funds.

U.S. Attorney Jaime Esparza for the Western District of Texas was clear about the message: they “took advantage of a national emergency to enrich themselves.” The sentence was designed to make that message unmistakable. Michael got 286 months. Tiffany got 108 months. Together, their serving more than 32 years. The restitution order is $3,027,526.11 – every dollar they stole, plus interest, plus costs.

If you think the Western District goes easy on PPP fraud because of competing priorities, the Fullerton sentences should correct that assumption permanantly.

The Tax Preparer’s 156 Applications

Araceli Benitez ran an insurance and tax services company in El Paso. She also operated a home health services company. Her job was helping people navigate federal requirements – tax filings, business documentation, regulatory compliance. People trusted her with their most sensitive financial information.

Between April 2020 and December 2022, she allegedly submitted 156 fraudulent PPP loan applications. Not 15. Not 50. One hundred and fifty-six seperate applications totaling more than $2.3 million.

Heres how the scheme worked according to the indictment. Benitez ran advertisements on Spanish-language radio and social media. She attracted clients who might not fully understand what they were signing. She filed applications with false information – materially false statements about businesses, employees, payroll. And she did it 156 times.

She was arrested on March 7, 2025. The indictment had been filed in January. The charges are staggering: seven counts of wire fraud, eight counts of bank fraud, two counts of money laundering, one count of structuring transactions to evade reporting requirements, two counts of aggravated identity theft, and one count of false or fictitious claims. If convicted on everything, shes facing up to 30 years in federal prison.

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

But heres what should concern anyone in El Paso who used a questionable preparer or helped with someone elses application. Benitez has 156 clients whose applications she submitted. Every one of those people is a potential witness. Every one of them might be contacted by investigators. Every one of them has to decide whether to cooperate against her – or face their own exposure for signing applications that contained false information.

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.

Heres the uncomfortable reality about preparer fraud. The person who signed the application is still responsible for whats in it. “I didnt know what she put down” is an explanation, not a defense. If your name is on a fraudulent application, your exposure exists regardless of who actually typed the lies.

If you used a preparer who advertised PPP services on Spanish radio or social media in El Paso, you should assume investigators have that preparer’s client list. The question is whether your name is on it.

The FBI Employee Who Gambled It Away