Charlotte 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 defending federal criminal cases nationwide. If you’re facing PPP or EIDL loan fraud charges in Charlotte, you’re dealing with federal prosecutors in the Western District of North Carolina who have made pandemic fraud enforcement a priority.

Charlotte businesses received hundreds of millions in PPP and EIDL funding during 2020 and 2021. The Charlotte Division of the Western District has actively prosecuted fraud cases – restaurant owners who inflated payroll, contractors who fabricated businesses, entrepreneurs who submitted false revenue figures. These cases carry decades of potential prison time.

Charlotte’s PPP and EIDL Fraud Prosecutions

Federal investigators in Charlotte work closely with the SBA Office of Inspector General and FBI fraud task forces. They’ve developed sophisticated methods for identifying fraudulent applications – data analytics that flag inconsistencies, bank record analysis that tracks fund usage, interview techniques that expose false statements.

A typical Charlotte case involves a business owner who applied for PPP loans for multiple companies. Claims 50 employees across three businesses, submits payroll documents showing $900,000 in annual payroll costs. Reality? He had 12 employees and $250,000 in actual payroll. Gets approved for over $500,000. Uses funds for a house renovation, vehicle purchases, personal investments. Federal agents track the money, compare his application against tax records, interview his employees. The discrepancies are obvious. He’s now facing wire fraud, bank fraud, and false statements charges.

Or consider EIDL fraud scenarios. Someone in south Charlotte claims to operate a marketing agency with $600,000 in annual revenue. Applies for an EIDL loan, receives $150,000. The business barely existed – created a website two days before applying, had minimal actual operations, no substantial revenue history. SBA auditors identify the fraud during routine compliance checks. Federal prosecutors file charges months later.

How Charlotte Investigations Develop

Most investigations start with automated fraud detection. The SBA Office of Inspector General uses software that analyzes millions of applications, identifying patterns that suggest fraud – multiple applications from the same IP address, businesses without tax histories, loans deposited into newly created accounts.

Once flagged, FBI agents in Charlotte take over. They subpoena bank records showing every transaction from the moment PPP or EIDL funds hit your account. They pull tax returns going back years. They review North Carolina Secretary of State business registrations. They interview anyone connected to your business.

Whistleblowers trigger some investigations. An employee reports that you inflated numbers. A business partner who had a falling out contacts the FBI. A bank compliance officer files a Suspicious Activity Report after noticing unusual fund movements. Once you’re under investigation, federal agents build their case methodically.

Federal Charges in Charlotte PPP Cases

Wire fraud is the foundation charge in most PPP and EIDL prosecutions. Under 18 U.S.C. § 1343, every electronic communication related to the fraud is a separate count. Submit your application online? That’s wire fraud. Receive funds electronically? Another count. Email supporting documents to the lender? Another count.

Prosecutors charge multiple counts. We’ve defended clients facing 18 wire fraud counts for a single PPP loan application. Each count carries up to 20 years in federal prison. These aren’t concurrent sentences – they can be stacked consecutively, meaning 20 years per count adds up fast.

Bank fraud charges under 18 U.S.C. § 1344 carry up to 30 years per count. If your PPP loan went through a private lender, prosecutors add bank fraud charges. False statements under 18 U.S.C. § 1001 add 5 years per count – each false certification on your application is a separate offense.

Money laundering charges come up when you moved funds around. Transferred PPP money from business to personal accounts? Prosecutors call that laundering. Made large purchases? Laundering. Each transaction can be charged separately under 18 U.S.C. § 1956, adding 20 years per count.

Charlotte Sentencing Guidelines

Federal judges in the Western District of North Carolina follow the U.S. Sentencing Guidelines. Your sentence is calculated based on loss amount and other factors. In PPP and EIDL cases, loss is typically the full fraudulent amount you received.

Loss over $250,000? That’s a 10-level enhancement. Over $550,000? Fourteen levels. Over $1.5 million? Eighteen levels. For a first-time offender with no criminal history, a $600,000 fraud translates to roughly 51-63 months in federal prison under the guidelines. That’s over four years minimum.

Aggravating factors increase sentences. If you organized or led the fraud scheme – recruited others, coordinated applications, managed the operation – that’s a 4-level enhancement. Sophisticated means – fake documents, shell companies, encrypted communications – adds 2 levels. Obstruction of justice adds 2 more levels if you destroyed evidence or lied to investigators.

Defense Strategies for Charlotte Clients

Every PPP and EIDL fraud case is defensible if you have the right legal strategy. The government must prove intent to defraud – that you knowingly made false statements with the purpose of obtaining funds you weren’t entitled to. If we can show lack of intent, that defeats the charges.

PPP and EIDL rules were confusing. The SBA changed guidance multiple times during 2020. Lenders gave inconsistent advice. Accountants misunderstood eligibility requirements. If you made mistakes based on confusion or reliance on professional advice, that’s negligence – not fraud. Negligence isn’t a crime.

We also attack loss calculations. The government claims you fraudulently obtained $500,000, but maybe you used $200,000 legitimately for payroll, rent, and utilities. If we prove partial legitimate use, we reduce the loss amount. Lower loss means lower sentencing guidelines, which means less prison time.

Sometimes we challenge evidence as improperly obtained. Did agents execute a search warrant without probable cause? Did they question you without Miranda warnings? Did they coerce statements? We file motions to suppress, and when we win, the government’s case often collapses.

Pre-Indictment Opportunities

The best time to hire federal criminal defense lawyers is before you’re charged. During the investigation phase, we can communicate with Assistant U.S. Attorneys, present evidence of innocence, negotiate resolutions that prevent indictment.

We’ve secured pre-indictment agreements where Charlotte clients avoided charges entirely by making restitution and cooperating. Once you’re indicted, prosecutors have committed resources to your case and have less incentive to negotiate favorable outcomes.

Cooperation Agreements

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

Cooperation isn’t right for everyone. You’re testifying against others, which creates risks. You need attorneys who understand the process, negotiate favorable agreements, and protect you throughout.

Why Spodek Law Group for Charlotte Cases

We’ve built our reputation handling complex federal cases nationwide. Todd Spodek represented Anna Delvey in the fraud case that became a Netflix series – a high-stakes prosecution that required innovative strategies. 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.

Our team includes former federal prosecutors who understand how the government builds fraud cases. They know the investigation techniques, the charging strategies, the sentencing advocacy. That insider knowledge shapes our defense approach.

We’re available 24/7 through our digital portal, which allows us to represent clients nationwide including throughout North Carolina. When you receive a target letter, when agents execute a search warrant, when you’re arrested – you need immediate legal advice. We provide that.

What Charlotte Defendants Must Do

Dont talk to federal investigators without an attorney. 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 case for your prosecution.

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

Dont discuss your case with anyone except your attorney. Conversations with friends, family, business partners can be subpoenaed. Only attorney-client communications are privileged.

Time matters in federal cases. Early legal representation creates more options for favorable outcomes. Pre-indictment representation can prevent charges entirely. Post-indictment representation focuses on minimizing damage and reducing sentences.

Contact Spodek Law Group for a consultation about your Charlotte PPP or EIDL fraud case. Your freedom, your career, your future – they’re all at stake. We know how to defend federal fraud cases, and we’re ready to fight for you.