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Los Angeles PPP – SBA – EIDL Loan Fraud Lawyers

Handling PPP and EIDL Fraud Investigations in LA: What to Know

When COVID hit, the government gave out billions in PPP and EIDL loans to help businesses. But now prosecutors are looking into potential fraud cases across the country, including here in LA.

If you got a letter from the SBA or federal agents about your loans, it’s time to call a lawyer. Let’s break down what’s going on and how to protect yourself.

The Most Common Types of Alleged Fraud

Prosecutors claim many folks misused their loan money. Some examples according to the Department of Justice:

  • Applying for loans for fake businesses
  • Hiding the money in personal accounts
  • Lying about payroll or employees
  • Spending it on personal stuff
  • Getting multiple loans from different lenders

They’re using charges like wire fraud, bank fraud, and money laundering. Penalties can be harsh if the alleged fraud is large.

What to Do When Federal Agents Knock

If agents show up asking questions, politely refuse to talk without a lawyer. They may pressure you, but you have rights against self-incrimination.

In EIDL and PPP cases, beware agents might:

  • Demand paperwork and try to search your home or business
  • Send subpoenas requesting your financial records
  • Have people secretly record you
  • Threaten immediate arrest if you don’t cooperate

Don’t fall for it. Say you won’t answer anything without an attorney and contact one ASAP.

Christine Twomey
Christine Twomey
2024-03-21
Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.
Brendan huisman
Brendan huisman
2024-03-18
Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!
Guerline Menard
Guerline Menard
2024-03-18
Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️
Keisha Parris
Keisha Parris
2024-03-15
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko Beauty
Taïko Beauty
2024-03-15
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!
Anthony Williams
Anthony Williams
2024-03-12
Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.
Loveth Okpedo
Loveth Okpedo
2024-03-12
Very professional, very transparent, over all a great experience
Bee L
Bee L
2024-02-28
Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.
divesh patel
divesh patel
2024-02-24
I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Building a Strong Defense

Prosecutors win over 90% of their cases because most people can’t afford a solid legal defense. But an experienced lawyer can find holes in their case.

Possible defenses include:

  • You didn’t intend fraud, just made mistakes
  • You used the money properly
  • No proof you knew about or were involved in fraud
  • Agents violated your rights
  • Mental issues affected your judgment

A lawyer may also be able to negotiate a favorable deal with less penalties. They can advise if it’s better to take a plea bargain or go to trial.

Avoiding Missteps

If you’re being investigated for PPP or EIDL fraud, here are some tips:

  • Don’t talk to agents without an attorney
  • Hire a lawyer immediately to protect your rights
  • Follow their advice on responding to investigators
  • Don’t destroy any records requested
  • Have your lawyer contact prosecutors to present your side
  • Be patient – this can be a lengthy process

Choosing the Right Fraud Lawyer in LA

Facing federal fraud charges is scary. Protect yourself by hiring a lawyer with specific experience defending LA PPP and EIDL cases. They’ll understand how local prosecutors work and may have connections to aid plea negotiations. Their expertise with the process, laws, and defense tactics could make all the difference.

Don’t wait to bring in counsel if you think your loans are being probed. An attorney can guide you on responding to investigators and negotiate with prosecutors before charges are even filed. This could help resolve the case without criminal penalties. When dealing with the feds, every day is crucial so act fast.

Fighting PPP and EIDL Fraud Charges in Los Angeles

Getting accused of COVID relief fraud is scary. The feds don’t mess around. Some business owners are facing years behind bars and fines in the millions for allegedly abusing programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
This article will give you the lowdown on how these cases work in LA, talk about ways a good lawyer can defend you, and give tips on finding the right attorney. I’m not going to use a bunch of legal mumbo-jumbo. I’ll explain things in simple terms, like I’m talking to a friend who’s worried they might get charged.

What Are the PPP and EIDL Programs?

When COVID hit in 2020, the government created the PPP and expanded the existing EIDL program to get emergency money to struggling businesses fast.
PPP loans were supposed to cover payroll and other expenses for 8 weeks. If you kept your employee headcount, the loan could be 100% forgiven. EIDLs provided low-interest loans up to $2 million for operating costs. EIDL advances up to $10k didn’t have to be paid back.
By mid-2021, the Small Business Administration (SBA) had approved over $800 billion in PPP loans and $200 billion in EIDL loans and advances. But watchdogs estimate around $100 billion was obtained through fraud.

How Are They Catching People in LA?

Federal prosecutors in the Central District of California – covering LA and nearby counties – are super aggressive about going after COVID relief fraud.
Between 2020 and 2022, they charged over 100 people just in the LA area for allegedly scoring over $150 million in fake pandemic loans.
Some of the schemes they’re accusing defendants of:
Using stolen IDs or making up fake businesses to apply
Lying about number of employees, payroll, taxes, etc.
Getting multiple loans for shell companies
Spending loan money on themselves
Working with shady loan officers
Lots of cases involve groups submitting hundreds of bogus applications seeking tens of millions in loans.

What Laws Are They Using to Bring Charges?

Prosecutors typically go after defendants for pandemic loan fraud using felony federal charges that can really stick it to you:
Wire fraud – Up to 20 years in prison
Bank fraud – Up to 30 years in prison
Aggravated identity theft – Extra mandatory 2 years in prison
False statements – Up to 5 years in prison
Money laundering – Up to 20 years in prison
If convicted, you can also get slammed with massive fines up to $250,000 per count. With the huge loan amounts, penalties can easily hit the millions.

Fighting Back Against the Charges

The potential prison time and fines are scary. But an experienced criminal defense lawyer can look closely at the facts and law to build strong defenses. Some options:
You didn’t mean to defraud anyone – it was just mistakes or confusion when applying.
The bogus info wasn’t a big deal and didn’t really affect the loan.
You didn’t intentionally try to deceive the lenders.
You got pushed into it by undercover agents or informants.
You were forced into the scheme with threats.
The laws they charged you under are too vague.
You’re being unfairly singled out when others did the same thing.
They waited too long – the deadline to prosecute passed.
They obtained evidence illegally.
The feds don’t have jurisdiction over these alleged crimes.
You desperately needed the money to save your business and employees.
You relied on bad advice from professionals like lawyers or accountants.
The evidence just isn’t strong enough to prove your guilt.

Finding the Right Lawyer in LA

Getting hit with federal charges is terrifying. Picking the right lawyer is crucial. Look for someone with a ton of experience defending white collar cases in LA federal courts. They’ll understand how things work locally and have connections.
Ask about their track record getting charges dropped before trial, keeping defendants out of prison, and working out good plea deals. Make sure they have specific experience with PPP and EIDL fraud cases and defenses.
A great lawyer will dig deep into the loan applications, bank statements, emails and texts, and anything else to build the strongest case for you. Don’t be shy about getting quotes from several lawyers before deciding who to hire.

The Bottom Line

PPP and EIDL fraud allegations are super serious with how much prison time and money is on the line. But a smart lawyer who knows federal cases can often get charges reduced or even dismissed. Don’t leave your business and freedom in the hands of some random attorney.

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