Texas PPP Loan Fraud Lawyers

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience in federal criminal defense. If you received an SBA audit notice, a federal subpoena, or investigator contact about your PPP loan in Texas – you’re facing a federal investigation. Texas leads the nation in PPP fraud prosecutions across Houston, Dallas, Austin, and San Antonio.

This article explains PPP loan fraud charges in Texas, how federal prosecutors build cases, what penalties you face, and what to do immediately. We represent clients in all four Texas federal districts and nationwide.

PPP Fraud Prosecutions Across Texas

Texas’s four federal districts – Northern (Dallas/Fort Worth), Southern (Houston), Eastern (Tyler/Beaumont), and Western (San Antonio/Austin) – have prosecuted more PPP fraud cases than almost any other state. The SBA Office of Inspector General identified billions in potentially fraudulent PPP loans statewide. Federal investigators work with the FBI, IRS Criminal Investigation, and SBA fraud units.

PPP loans covered payroll costs to keep employees working during the pandemic. The program required truthful applications. Lying about your business, employees, payroll expenses, or how you spent funds – that’s federal fraud.

Your loan gets flagged when discrepancies appear. Maybe your tax returns don’t match the payroll you claimed. Maybe employees listed on your application weren’t actually working for you in early 2020. Maybe you spent PPP money on personal expenses instead of payroll and rent. The SBA cross-references applications with IRS data, state employment records, and banking transactions. When numbers don’t match – you get investigated.

Federal investigators prioritize loans over $150,000 but prosecute smaller amounts too – especially when fraud is obvious.

Federal Charges in Texas PPP Cases

Wire fraud is the primary charge. Submitting your PPP application electronically used interstate communications. That’s 18 U.S.C. § 1343 – carrying up to 20 years in federal prison.

Bank fraud applies when you lied to financial institutions. That’s 18 U.S.C. § 1344 – maximum 30 years in prison and $1 million in fines.

False statements to the SBA violate 18 U.S.C. § 1014. If you lied about employee counts, payroll expenses, or business eligibility – you’re facing 30 years.

Money laundering charges get added when you transferred funds between accounts or tried to hide spending. That’s 18 U.S.C. § 1956 – up to 20 years.

Conspiracy charges apply when others were involved – accountants, business partners, loan brokers. If they helped prepare false documents or knew about inflated numbers, prosecutors charge conspiracy to commit fraud. Conspiracy carries the same penalties as the underlying crime.

What Prosecutors Must Prove

Intent matters. Prosecutors must prove you knowingly made false statements. “Knowingly” means you understood the information was false when you submitted it – not that you understood it was illegal.

You claimed $500,000 in payroll when you actually paid $200,000? You knew that was wrong. You listed 35 employees when you only had 15? You knew that was false. Prosecutors don’t need to prove criminal genius – just that you lied deliberately.

How Investigators Build PPP Fraud Cases

They start with your bank accounts. Federal investigators subpoena every transaction in your business and personal accounts for 2019 through 2021. They’re analyzing how you spent PPP funds – looking for personal purchases, luxury items, transfers to family.

Next they pull your tax returns. Your 2019 Schedule C or business tax return shows actual payroll. If your PPP application claimed higher amounts – that’s documentary evidence of fraud.

Then they interview your employees, former employees, vendors, landlords – anyone who can verify your business operations. If you claimed 25 employees but investigators find only 10 who actually worked there – that’s fraud.

Forensic accountants review your spending patterns. PPP funds were meant for payroll, rent, utilities, mortgage interest. If you bought vehicles, boats, jewelry, or vacations – prosecutors will argue you never intended to use the money properly.

Sentencing in Texas Federal Courts

Federal sentencing guidelines calculate punishment based on loss amount. Fraud involving $150,000 to $250,000 significantly increases your sentencing range. Over $550,000 – you’re looking at years in federal prison.

Acceptance of responsibility changes outcomes. If you cooperate, admit wrongdoing, and accept a plea deal early – judges can reduce sentences by up to 30%. If you go to trial and lose – you get the maximum.

Recent Texas sentences show the pattern. A Houston defendant who fraudulently obtained $800,000 got 54 months. A Dallas business owner who lied about payroll to get $350,000 received 36 months. An Austin defendant who submitted fake employee lists got 24 months.

Restitution is mandatory – you must repay every dollar. Fines can reach $250,000 for individuals and $500,000 for organizations. Asset forfeiture is common – the government seizes property purchased with PPP funds.

What to Do When Federal Agents Contact You

Don’t talk to federal agents without a lawyer. If FBI or IRS agents show up asking about your PPP loan – don’t answer questions. Don’t try to explain discrepancies. Everything you say becomes evidence against you. Politely decline to speak and contact a federal defense attorney immediately.

If you receive a grand jury subpoena – that means prosecutors are presenting evidence to a grand jury to get an indictment. The investigation is advanced. You need legal representation before producing any documents.

Target letters formally notify you that you’re under investigation. If you receive one – it means prosecutors are considering charges and may be willing to negotiate before indicting you.

Why Spodek Law Group Handles Texas PPP Cases

We’ve represented clients in federal prosecutions since 1976. Todd Spodek’s father founded this firm as a federal criminal defense practice – Todd grew up watching federal trials.

Our team includes former federal prosecutors who know how the government builds fraud cases. They worked these investigations from the other side – they know what evidence prosecutors need, what weaknesses exist, and how to negotiate with Assistant United States Attorneys.

We’ve handled high-profile federal cases that got national attention. Todd Spodek represented Anna Delvey in her fraud prosecution – a case that became a Netflix series. We represented the Ghislaine Maxwell juror in his misconduct case.

We handle PPP fraud cases in Houston, Dallas, Austin, San Antonio, and throughout Texas’s four federal districts. We’re available 24/7 because federal investigations don’t wait for business hours.

Our Defense Approach

We investigate the government’s case before they finish building it. When you hire us early – during the investigation stage – we can sometimes prevent charges entirely. We submit presentations to prosecutors showing why evidence doesn’t support fraud charges.

If charges are filed, we challenge every element. Did you make a false statement, or rely on your accountant? Did you knowingly lie, or misunderstand PPP rules?

We negotiate aggressively. Prosecutors want convictions – they’ll consider plea deals that reduce charges. We’ve gotten wire fraud charges dropped. We’ve secured probation instead of prison.

Some cases should go to trial. When evidence is weak or intent is missing – we try cases.

Texas PPP loan fraud investigations are serious federal prosecutions. If you’re under investigation or facing charges – call us immediately.