arizona ppp loan fraud lawyers and attorneys

Arizona PPP Loan Fraud Lawyers and Attorneys

If you’re reading this, you’re probably facing PPP loan fraud allegations in Arizona – or you’re worried you might be under investigation. 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. PPP fraud prosecutions in Arizona have intensified dramatically since 2021, and federal prosecutors aren’t slowing down.

The government takes PPP fraud seriously because of the scale – billions in fraudulent loans across the country. Arizona has seen hundreds of investigations, dozens of indictments, and significant prison sentences for defendants who didnt mount effective defenses. You need attorneys who understand federal fraud prosecutions and know how to challenge the government’s evidence.

How PPP Fraud Investigations Start in Arizona

Most investigations begin with data analytics. The SBA Office of Inspector General uses sophisticated software to flag suspicious loan applications – inconsistent payroll numbers, businesses that didn’t exist before 2020, applications from the same IP address, loans deposited into newly opened bank accounts. Once flagged, your application gets referred to federal investigators.

The FBI or SBA-OIG agents start pulling records. They subpoena your bank statements, tax returns, payroll records from ADP or Paychex. They interview your employees, your accountant, your business partners. They compare what you submitted on your PPP application against IRS records, state tax filings, unemployment insurance documents. Discrepancies lead to more investigation.

Some cases start with whistleblowers. A disgruntled employee reports that you inflated payroll numbers. A business competitor tips off investigators. A bank compliance officer notices suspicious activity and files a Suspicious Activity Report (SAR). Once that happens, you’re on the government’s radar.

Warning Signs You’re Under Investigation

You might not know you’re being investigated until agents show up at your door or you receive a target letter from the U.S. Attorney’s Office. But there are earlier signs – your bank asks unusual questions about your PPP loan, you receive a grand jury subpoena for documents, former employees mention being contacted by federal agents, your accountant gets subpoenaed.

If you notice any of these signs, contact a federal criminal defense attorney immediately. What you do during the investigation phase determines whether you get charged, what charges you face, and what kind of sentence you’re looking at if convicted.

Common PPP Fraud Scenarios We Defend

Phoenix business owner applies for PPP loans using multiple businesses – some legitimate, some shell companies. Submits inflated payroll figures, fabricated tax documents, fake employee lists. Receives over $1 million across several applications. Spends money on real estate, luxury cars, personal debt. FBI tracks fund usage through bank records. Client faces 15 counts of wire fraud and bank fraud.

Or consider this – Tempe restaurant owner applies for PPP funds claiming 30 employees and $600,000 in annual payroll. Reality? She had 12 employees and $200,000 in actual payroll. She inflated numbers to get a larger loan. Used some funds for payroll, spent the rest on personal expenses. When auditors investigated, she couldn’t produce documentation supporting her original application. Now facing federal charges.

Then there’s identity theft cases. Defendant uses stolen identities to create fake businesses, submits PPP applications in those businesses’ names, routes funds to accounts he controls. This adds identity theft charges on top of fraud charges, significantly increasing potential prison time.

The Federal Charges You’re Facing

Wire fraud is the backbone of PPP prosecutions. Under 18 U.S.C. § 1343, each electronic communication in furtherance of the fraud scheme is a separate count. Submitted your application online? That’s wire fraud. Received funds via ACH transfer? Another count. Sent an email to the lender with false documents? Another count. Prosecutors stack these charges – we’ve seen indictments with 20+ wire fraud counts for a single PPP loan.

Each wire fraud count carries up to 20 years in federal prison. If the fraud affected a financial institution, prosecutors add bank fraud charges under 18 U.S.C. § 1344 – that’s 30 years maximum per count. False statements charges under 18 U.S.C. § 1001 add another 5 years per count.

Then there’s money laundering. If you moved fraudulently obtained PPP funds between accounts, made large purchases, transferred money to family members – prosecutors can charge money laundering under 18 U.S.C. § 1956. That’s another 20 years per count. The government loves stacking charges because it creates leverage for plea negotiations.

Aggravating Factors That Increase Sentences

Federal sentencing guidelines calculate your sentence based on the loss amount and other factors. In PPP cases, loss amount is typically the total loan amount you received fraudulently. Over $550,000 in loss? That’s 14-16 levels added to your base offense level, which translates to years in prison.

But other factors matter too. If you were the organizer or leader of the fraud scheme, that’s a 4-level enhancement. If you used sophisticated means – creating shell companies, using fake documents, involving multiple people – that’s a 2-level enhancement. If you obstructed justice by destroying evidence or lying to investigators, that’s another 2 levels.

Building Your Defense Strategy

Every PPP fraud case is defensible, but the defense strategy depends on the specific facts. Sometimes we challenge the government’s loss calculation – proving that some funds were used legitimately for payroll, rent, utilities. If we can reduce the loss amount from $500,000 to $250,000, that dramatically reduces the guideline sentencing range.

Other cases involve challenging the intent element. The government must prove you knowingly submitted false information with intent to defraud. Maybe you relied on your accountant’s advice. Maybe you misunderstood the PPP eligibility requirements – which were confusing and changed multiple times. Maybe the errors in your application were negligent mistakes, not intentional fraud. That’s a complete defense if we can prove it.

Sometimes we challenge evidence as improperly obtained. Did agents execute a search warrant that was overbroad or based on a defective affidavit? Did they question you without proper Miranda warnings? Did they pressure you into making statements? We file motions to suppress evidence and statements that violate your constitutional rights.

Plea Negotiations and Cooperation

Most federal cases resolve through plea agreements. But timing matters. If we negotiate before indictment, we often secure agreements with reduced charges, lower sentencing ranges, and favorable conditions. Post-indictment plea agreements are less favorable because prosecutors have less incentive to negotiate – they’ve already committed resources to your prosecution.

Cooperation with the government can significantly reduce your sentence. If you have information about other fraud schemes, co-conspirators, or larger criminal organizations, prosecutors may offer substantial assistance departures under U.S.S.G. § 5K1.1. We’ve seen sentences reduced by 40-60% for clients who cooperated meaningfully.

But cooperation is risky. You’re essentially becoming a witness against others, which can create safety concerns. You need an attorney who understands the cooperation process, can negotiate favorable cooperation agreements, and protects your interests throughout.

Why Choose Spodek Law Group

We’ve built our reputation on handling cases that others said were unwinnable. Todd Spodek represented Anna Delvey – the fake heiress who conned New York’s elite – in a case that became a Netflix series. 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. These outcomes required innovative legal strategies and aggressive advocacy.

Our team includes former federal prosecutors who understand how the government builds fraud cases. They know the investigative techniques, the pressure tactics, the weaknesses in typical prosecutions. That insider perspective informs everything we do.

We’re available 24/7 because federal investigations don’t follow business hours. When you receive a target letter, when agents execute a search warrant, when you’re arrested – you need immediate legal guidance. We provide that. Our digital portal allows us to represent clients nationwide, including throughout Arizona.

What To Do Right Now

Dont talk to federal investigators without an attorney present. They’re not trying to help you – they’re building a case for prosecution. Exercise your Fifth Amendment right to remain silent and contact us immediately.

Dont destroy documents or alter records. That’s obstruction of justice, which carries additional federal charges. Preserve everything – bank records, tax returns, PPP application documents, communications with lenders.

Contact Spodek Law Group for a consultation about your Arizona PPP fraud case. The earlier we get involved, the more options you have. Pre-indictment representation can sometimes prevent charges from being filed at all. Even if you’re already indicted, we can build a defense strategy that protects your freedom and your future.