Georgia PPP and EIDL Loan Fraud Lawyers

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek – with over 40 years of combined experience handling federal criminal cases nationwide. If you’re facing a PPP or EIDL loan fraud investigation in Georgia, you need to understand what you’re up against. Federal prosecutors in the Northern District of Georgia and Middle District of Georgia have been aggressive in pursuing pandemic loan fraud charges, and they’re not slowing down in 2025.

Atlanta, Savannah, Macon, Augusta – we’re seeing cases across Georgia. The charges are serious: wire fraud, bank fraud, making false statements. The exposure is significant: 20 years for wire fraud, 30 years for bank fraud. And federal investigators aren’t just targeting obvious fraud schemes with fake businesses and stolen identities. They’re scrutinizing legitimate business owners who made mistakes, who inflated numbers, who misunderstood confusing program requirements.

Why Georgia Has So Many PPP Fraud Cases

Georgia saw massive PPP and EIDL loan volume during the pandemic. Thousands of businesses applied for and received emergency funding. Atlanta alone accounted for billions in SBA loans. Now federal investigators – working with the SBA Office of Inspector General, FBI, and IRS Criminal Investigation – are auditing those loans systematically.

They’re comparing loan applications against tax returns. They’re matching claimed payroll numbers against actual payroll records. They’re tracking where funds went by reviewing business bank accounts. When they find discrepancies, they refer cases to federal prosecutors. The Northern District U.S. Attorney’s Office in Atlanta has made PPP fraud a priority. So has the Middle District office covering Macon and Savannah.

What gets people charged? You claimed 25 employees when you actually had 18. You said your business was operational since 2019 when it didn’t start until 2020. You used EIDL funds to pay personal credit cards instead of business expenses. You received both PPP and EIDL funding but didn’t disclose one on the other application. You certified you had no delinquent federal debts when you did. These are the actual allegations we see in Georgia cases.

The Investigation Timeline Nobody Expects

Most Georgia defendants we work with say they had no idea they were under investigation until agents showed up or they received a target letter. The investigation phase happens quietly. The SBA flags your loan for audit – maybe because of a discrepancy in your forgiveness application, maybe because your loan amount seems disproportionate to your reported revenue, maybe because someone tipped them off.

That referral goes to the SBA Office of Inspector General. They pull your complete loan file, your tax returns going back five years, your business bank records. They interview your employees. They sometimes conduct surveillance on your business. They build a comprehensive case before you ever know they’re looking at you.

Then they reach out. Federal agents call you asking to “discuss your loan application.” Or they show up at your business or home. Or you receive a grand jury subpoena for documents. Or you get a target letter from the U.S. Attorney’s Office stating you’re under investigation. By this point, they’ve already gathered significant evidence and formed conclusions about your guilt.

What These Charges Actually Mean

Wire fraud under 18 U.S.C. § 1343 is the most common charge. If you submitted a loan application electronically and made false statements, that’s wire fraud. Maximum sentence: 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 applies when you made false statements to obtain funds from a financial institution. Maximum sentence: 30 years. Making false statements under 18 U.S.C. § 1001 covers lying to the federal government. Maximum sentence: 5 years.

Prosecutors often stack these charges. You might face wire fraud for the initial application, bank fraud for submitting it to the lender, and false statements for certifying the information was accurate. Each count carries separate penalties even though they all relate to the same conduct. This gives prosecutors enormous leverage during plea negotiations – agree to plead to one count and they’ll dismiss the others.

Sentencing in federal court follows the U.S. Sentencing Guidelines. Fraud offense levels are calculated based on loss amount. A $50,000 loan puts you at one level; a $500,000 loan puts you much higher. Then enhancements apply: sophisticated means, affecting a financial institution, being an organizer if others were involved. Your criminal history adjusts the guideline range up or down. Even first-time offenders face potential prison time for larger loan amounts.

How Criminal Intent Gets Proven

Federal fraud charges require proof of criminal intent. Prosecutors must prove you knowingly made false statements with intent to defraud. This is where defenses get built. Did you genuinely misunderstand the application requirements? The PPP and EIDL programs were created quickly with confusing and changing guidance. Did you reasonably believe independent contractors counted toward your employee total? Did you think certain expenses qualified as covered uses when the rules were ambiguous?

Good faith mistake negates criminal intent. If your conduct resulted from honest misunderstanding rather than intentional deception, that’s a defense. We build this by documenting the confusion around program rules in 2020, showing you consulted with accountants or attorneys, demonstrating you relied on their advice, proving you disclosed accurate information to advisors.

Reliance on professional advice is powerful. If you worked with a CPA who calculated your payroll numbers, and you gave them accurate information, their errors don’t become your criminal liability. We gather all communications with advisors showing you sought guidance and relied on their expertise in good faith.

Georgia Federal Court Realities

The Northern District of Georgia covers Atlanta and much of north Georgia. The Middle District covers Macon, Columbus, Athens. Federal judges in both districts have varied approaches to sentencing PPP fraud cases. Some are relatively lenient with first-time offenders who used funds partially for legitimate business purposes. Others view pandemic fraud as exploitation of a national emergency and impose harsh sentences regardless of circumstances.

What influences your sentence? The loan amount. How you actually used the funds – business expenses versus personal purchases. Whether you cooperated with investigators. Whether you accepted responsibility early or fought charges until trial. Your criminal history. How sophisticated the fraud was. All of this gets argued at sentencing, and having a lawyer who knows how to present mitigating evidence effectively can mean the difference between probation and years in prison.

We’ve watched Georgia judges sentence PPP fraud defendants over the past two years. In Atlanta federal court, sentences have ranged from probation to significant prison time for similar conduct based on how cases were presented. Judges care about whether you’re truly remorseful, whether you’ve taken steps to make things right, whether you have family and community support, whether you have health issues or other hardships. Your lawyer needs to tell your story in a way that humanizes you beyond the criminal conduct.

Cooperation and Sentence Reduction

Georgia federal prosecutors frequently offer cooperation agreements. You plead guilty and agree to provide information about other loan fraud schemes or participants. In exchange, the government files a motion for downward departure under U.S.S.G. § 5K1.1 or Rule 35(b), which can reduce your sentence below guideline ranges – sometimes dramatically.

We’ve seen cooperation reduce sentences from years in prison to probation. But cooperation isn’t without risk. You’re admitting guilt to your own conduct. You’re potentially testifying against others, which has personal and safety implications. You’re spending months in proffer sessions with prosecutors detailing everything you know. And there’s no guarantee the sentence reduction will be substantial – that’s entirely discretionary with the prosecutor and judge.

Before agreeing to cooperate, your lawyer needs to negotiate the specific terms. What exactly do prosecutors want you to admit? What information do they want about others? What’s the realistic sentence benefit? What happens if your cooperation doesn’t provide as much value as they hoped? These details matter because once you’ve signed a cooperation agreement, you can’t walk back your statements.

Why Spodek Law Group for Georgia Cases

We’re based in New York but handle federal criminal defense cases nationwide. Federal law applies the same way in Georgia as anywhere else – same criminal statutes, same sentencing guidelines, same procedural rules. What varies is local prosecutor culture, judicial temperament, and enforcement priorities. We adapt by researching recent Georgia case outcomes, consulting with local counsel when beneficial, and understanding what arguments resonate with your specific judge.

Todd Spodek is a second-generation lawyer – he grew up working in his father’s law firm, watching court proceedings from childhood. He’s handled hundreds of federal cases, from high-profile matters featured on Netflix to complex white-collar prosecutions that never made headlines. Our team includes former federal prosecutors who understand how these investigations work, what evidence the government needs, and where weaknesses exist in their cases.

Our approach: get involved before charges if possible. We conduct our own investigation – gathering your business records, interviewing witnesses, analyzing your loan application and how funds were used. Sometimes we present evidence to prosecutors that convinces them not to file charges. Other times we negotiate favorable plea terms that minimize your exposure. And when necessary, we go to trial. We’ve taken on cases other firms said were unwinnable.

You can reach us 24/7. Initial consultations are risk-free with no time limits – we want you to understand your situation fully. We use a completely digital portal for all communications, documents, and billing so you can manage your case from anywhere in Georgia. And we work on transparent fee structures without surprises or hidden costs.

What You Must Do Now

Don’t talk to federal agents without a lawyer present. Even if you think you’re just clarifying misunderstandings or helping their investigation, everything you say gets documented and used against you. Agents are trained to ask questions that elicit admissions or create inconsistencies in your story. Those inconsistencies become evidence of lying – which is itself a separate federal crime.

Don’t destroy documents or delete communications. That’s obstruction of justice under 18 U.S.C. § 1519, carrying up to 20 years in federal prison. Even if an email or bank statement seems damaging, destroying it after you know there’s an investigation makes everything exponentially worse. Your lawyer can work with problematic documents; prosecutors use destroyed documents to prove consciousness of guilt and add new charges.

Don’t discuss your case with anyone except your attorney. Not your business partner. Not your spouse. Not your accountant. Federal investigators can subpoena all of them to testify about what you said. Only attorney-client communications are privileged.

Hire a federal criminal defense lawyer who handles white-collar cases, not a general practice attorney. PPP and EIDL fraud prosecutions involve complex financial documentation, sentencing guideline calculations, cooperation negotiations, and federal court procedure. You need someone who does this regularly.

Call us before this gets worse. Federal investigations don’t just disappear. They either result in declined prosecution – which requires your lawyer actively presenting your defense to prosecutors – or they result in indictment. Which outcome you get depends on having experienced representation from the moment you learn you’re under investigation. The earlier we get involved, the more options you have and the better outcome we can achieve.