Boston PPP and EIDL Loan Fraud Lawyers

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek – who earned his Bachelor of Science in Criminal Justice from Northeastern University right here in Boston. We have over 40 years of combined experience defending federal criminal cases, and we understand the unique landscape of PPP and EIDL fraud prosecutions in Massachusetts.

The District of Massachusetts has been aggressive in prosecuting pandemic fraud cases. Federal prosecutors in Boston have secured dozens of indictments against defendants accused of submitting fraudulent PPP and EIDL applications. These cases carry serious prison time – we’re talking 10, 15, even 20 years if you’re convicted on multiple counts.

Boston’s PPP and EIDL Fraud Landscape

Massachusetts businesses received billions in PPP and EIDL funding during the pandemic. Most applications were legitimate, but federal investigators estimate that millions went to fraudulent schemes. Restaurant owners who inflated employee counts, tech entrepreneurs who fabricated businesses, contractors who submitted false payroll records – all are now facing federal scrutiny.

Take a typical case we’ve seen. A Dorchester business owner applies for PPP loans for three different companies – one real, two shells. Submits payroll documents showing 60 total employees across all three businesses. Reality? He had 8 employees total. Gets approved for over $700,000 in PPP funds. Spends it on a house down payment, luxury vehicles, personal debt. FBI tracks the money through bank records. He’s now facing multiple wire fraud counts.

Or consider EIDL fraud – someone in Cambridge claims to operate a consulting business with $800,000 in annual revenue. Applies for an EIDL loan, receives $150,000 plus a $10,000 advance. The business barely existed – minimal revenue, no real operations. SBA investigators audit the loan, discover the fraud, refer it to federal prosecutors.

How Federal Investigations Work in Boston

Most investigations start with SBA Office of Inspector General data analytics. Sophisticated software flags suspicious applications – businesses that didn’t exist before 2020, multiple applications from the same IP address, loans deposited into newly opened accounts.

Once flagged, FBI agents in Boston start investigating. They subpoena your bank records, pull your tax returns, review your Massachusetts DOR filings. They interview your employees, your accountant, your business partners. They compare what you told the SBA against what you reported to the IRS. Discrepancies become evidence of fraud.

Some cases start with whistleblowers. A disgruntled employee reports that you inflated numbers. A competitor tips off investigators. A bank compliance officer files a Suspicious Activity Report after noticing unusual transactions. Once you’re on the government’s radar, the investigation moves forward systematically.

Federal Charges in Massachusetts PPP Cases

Wire fraud under 18 U.S.C. § 1343 is the most common charge. Every electronic communication related to the fraud is a separate count. Submitted your application online? Wire fraud. Received funds via ACH transfer? Another count. Sent an email with supporting documents? Another count. Prosecutors stack these charges – indictments often include 15-20 wire fraud counts for a single loan application.

Each wire fraud count carries up to 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 adds up to 30 years per count if your fraud involved a financial institution. False statements under 18 U.S.C. § 1001 adds 5 years per count. Money laundering charges under 18 U.S.C. § 1956 add another 20 years if you moved funds between accounts or made large purchases.

These sentences can run consecutively. You’re not looking at 20 years total – you could be looking at 40, 60, 80 years if convicted on multiple counts and sentenced consecutively. That’s why effective legal representation matters so much.

Sentencing Guidelines in Massachusetts

Federal judges in Boston follow the U.S. Sentencing Guidelines. Your sentence is calculated based on the loss amount and aggravating factors. In PPP and EIDL cases, loss amount is typically the full amount you received fraudulently.

Loss over $250,000? That’s a 10-level enhancement to your base offense level. Over $550,000? Fourteen levels. Over $1.5 million? Eighteen levels. These enhancements translate directly to years in prison. Even first-time offenders with no criminal history face substantial prison time for large fraud amounts.

Role enhancements increase sentences further. If you organized or led the fraud scheme, that’s a 4-level enhancement. If you used sophisticated means – created shell companies, fabricated documents, used encrypted communications – that’s a 2-level enhancement. Obstruction of justice adds another 2 levels if you destroyed evidence or lied to investigators.

Defending PPP and EIDL Cases in Boston

Every case has defensive strategies. The government must prove every element beyond a reasonable doubt – that you made false statements, that you knew they were false, that you intended to defraud. If we can create reasonable doubt on any element, you should be acquitted.

Intent is often the key battleground. PPP and EIDL rules were confusing, especially in the early months of the pandemic. The SBA issued conflicting guidance. Loan officers gave inconsistent advice. Accountants misunderstood eligibility requirements. If you made mistakes based on confusion or bad advice, that’s negligence – not intentional fraud. Negligence isn’t criminal.

We also challenge loss calculations. The government claims $600,000 in loss, but maybe you used $200,000 legitimately for payroll and rent. If we can prove partial legitimate use, we reduce the loss amount. Lower loss means lower sentencing guidelines, which means less prison time.

Sometimes we challenge the legality of how evidence was obtained. Did agents execute a search warrant based on false or misleading information? Did they question you without proper Miranda warnings? Did they coerce statements? We file motions to suppress improperly obtained evidence, and when we win those motions, the government’s case often falls apart.

Pre-Indictment Representation in Boston

The best time to hire federal criminal defense attorneys is before you’re indicted. During the investigation phase, we can communicate with Assistant U.S. Attorneys in Boston, present exculpatory evidence, negotiate resolutions that prevent charges from being filed.

We’ve secured pre-indictment agreements where clients avoided charges entirely by making restitution and cooperating with investigators. Once you’re indicted, prosecutors have less incentive to negotiate – they’ve already committed resources to your prosecution.

Cooperation and Substantial Assistance

If you have information about other fraud schemes, co-conspirators, or organized criminal activity, cooperation can dramatically reduce your sentence. Under U.S.S.G. § 5K1.1, prosecutors can file substantial assistance motions that reduce your sentence by 40%, 50%, even 60%.

But cooperation is risky. You’re testifying against others, which creates potential safety issues. You need attorneys who understand the cooperation process, negotiate favorable agreements, and protect your interests throughout.

Why Spodek Law Group for Boston Cases

Todd Spodek’s Boston connection runs deep – he earned his degree from Northeastern and worked at prominent Boston law firms before establishing his own practice. We understand the Massachusetts federal court system, the prosecutors, the judges.

We’ve built our reputation on handling cases others said were unwinnable. Todd represented Anna Delvey in the fraud 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 relentless advocacy.

Our team includes former federal prosecutors who understand how the government builds fraud cases. They know the investigative techniques, the charging decisions, the weaknesses in typical prosecutions. That insider knowledge shapes our defense strategies.

We’re available 24/7 through our digital portal. When you receive a target letter, when agents execute a search warrant, when you’re arrested – you need immediate legal guidance. We provide that, regardless of your location. Our nationwide practice allows us to represent Boston clients effectively.

What Boston Defendants Must Do Now

Dont talk to federal investigators without an attorney present. Exercise your Fifth Amendment right to remain silent. Politely decline to answer questions and contact us immediately. Investigators aren’t trying to help you – they’re building a prosecution case. Every word you say can be used against you.

Dont destroy documents or delete communications. That’s obstruction of justice, which carries separate federal charges and sentencing enhancements. Preserve everything – bank records, tax returns, loan applications, emails, text messages.

Dont discuss your case with anyone except your attorney. Conversations with friends, family, business partners aren’t privileged. Prosecutors can subpoena those people and force them to testify about what you said. Only communications with your attorney are protected by attorney-client privilege.

Time matters in federal cases. Early legal representation creates more options. Pre-indictment representation can prevent charges. Post-indictment representation focuses on minimizing damage and reducing sentences. Either way, you need experienced federal criminal defense attorneys who understand PPP and EIDL fraud prosecutions.

Contact Spodek Law Group for a consultation about your Boston PPP or EIDL fraud case. Your freedom, your career, your reputation – they’re all at stake. Federal convictions follow you forever, affecting employment, professional licenses, even your ability to vote. We know how to defend these cases, and we’re ready to fight for you.