Connecticut PPP and EIDL 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’re facing a PPP or EIDL fraud investigation in Connecticut – you need experienced federal defense counsel immediately. The District of Connecticut has aggressively prosecuted pandemic loan fraud cases across Hartford, New Haven, Bridgeport, and Stamford.

This article explains PPP and EIDL fraud charges in Connecticut, how federal investigators build cases, what penalties you face, and what to do now. We represent clients in Connecticut’s federal district and nationwide.

PPP and EIDL Fraud in Connecticut

The District of Connecticut – covering the entire state with courthouses in Hartford, New Haven, and Bridgeport – has prosecuted numerous pandemic loan fraud cases since 2020. The SBA Office of Inspector General identified hundreds of millions in potentially fraudulent loans across the state. Federal investigators work with the FBI, IRS Criminal Investigation, and SBA fraud units.

PPP loans covered payroll costs. EIDL loans provided economic injury disaster assistance. Both required truthful applications. Lying on either – about your business, employees, revenue, or spending – is federal fraud.

Your loan gets flagged when discrepancies appear. Maybe your PPP payroll numbers don’t match your tax returns. Maybe your EIDL revenue claims exceed what you reported to the IRS. Maybe you spent loan money on personal expenses instead of business costs.

Federal investigators cross-reference applications with IRS data, Connecticut state employment records, banking transactions, and business registrations. When numbers don’t match – you get investigated.

Federal Charges in Connecticut

Wire fraud is standard. Submitting electronic loan applications uses 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 and $1 million in fines.

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

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

Conspiracy charges apply when others were involved. If accountants, partners, or consultants helped prepare false documents, prosecutors charge conspiracy. Conspiracy carries the same penalties as the underlying fraud.

Intent Requirements

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

You claimed $400,000 in payroll when you paid $140,000? You knew that was wrong. Prosecutors don’t need to prove sophistication – just deliberate lies.

How Investigators Build Cases

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

Next they pull your tax returns. Your 2019 and 2020 returns show actual payroll and revenue. If your applications claimed higher amounts – that’s documentary evidence.

They interview employees, former employees, vendors, landlords to verify your business operations. If you claimed 30 employees but investigators find only 13 – that’s fraud.

Forensic accountants review spending patterns. PPP funds were for payroll, rent, utilities. EIDL funds covered working capital and fixed debts. If you bought vehicles or jewelry – prosecutors will argue fraudulent intent.

Sentencing in Connecticut Federal Court

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

Acceptance of responsibility matters. 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 Connecticut sentences show the pattern. A Hartford defendant who obtained $480,000 through false applications got 33 months. A New Haven defendant who lied about payroll to get $260,000 received 24 months.

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

What to Do When Contacted

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

If you receive a grand jury subpoena – prosecutors are presenting evidence to indict you. You need legal representation before producing documents.

Target letters notify you that you’re under investigation. If you get one – prosecutors are considering charges and may negotiate before indicting.

Why Spodek Law Group Handles Connecticut Cases

We’ve represented clients in federal prosecutions since 1976. Todd Spodek’s father founded this firm – Todd grew up in federal courtrooms.

Our team includes former federal prosecutors who worked fraud investigations from the government side. They know how prosecutors think, what evidence they need, what weaknesses exist.

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

We handle PPP and EIDL fraud cases in Hartford, New Haven, Bridgeport, Stamford, and throughout Connecticut. We’re available 24/7.

Our Defense Strategy

We investigate before the government finishes. When you hire us during the investigation stage – we can sometimes prevent charges entirely. We submit presentations to prosecutors explaining why evidence doesn’t support fraud charges.

If charges are filed, we challenge every element. Did you make false statements, or rely on professional advice? Did you have fraudulent intent, or misunderstand program rules?

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

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

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