Dallas 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 handling federal criminal defense cases nationwide. If you’re reading this, there’s a good chance you received a letter from the SBA, got contacted by federal agents, or heard that investigators are asking questions about your business loans. PPP and EIDL loan fraud investigations in Dallas are moving fast in 2025 – and the stakes couldn’t be higher.

Federal prosecutors in the Northern District of Texas have made pandemic loan fraud a priority. They’re not just going after obvious scammers with fake businesses. They’re scrutinizing legitimate business owners who made mistakes on applications, who inflated payroll numbers slightly, who used funds for purposes that weren’t quite covered. The difference between a paperwork error and wire fraud can seem thin – but it determines whether you face prison time.

Why Dallas Business Owners Are Getting Charged

The SBA distributed billions in emergency funding through PPP and EIDL programs. In Dallas alone, thousands of businesses received loans. Now federal investigators – working with the SBA Office of Inspector General, FBI, and IRS Criminal Investigation – are conducting audits, matching loan applications against tax returns, comparing payroll records against what you claimed.

What gets people charged? You submitted payroll records showing 20 employees when you actually had 12. You claimed your business was operational in February 2020 when it didn’t start until April. You used EIDL funds to pay personal credit cards instead of business expenses. You certified you hadn’t received other government assistance when you had. These aren’t hypothetical – these are the actual allegations we see in Dallas cases.

Federal prosecutors treat this as wire fraud under 18 U.S.C. § 1343, bank fraud under 18 U.S.C. § 1344, or making false statements under 18 U.S.C. § 1001. Wire fraud alone carries up to 20 years in federal prison. Bank fraud carries up to 30 years. Even if the loan amount was relatively small – say $50,000 – the exposure is massive because it’s federal court and sentencing guidelines calculate based on intended loss, not actual loss.

The Timeline That Catches People Off Guard

Most Dallas defendants we work with say the same thing: they didn’t realize there was a problem until agents showed up or they received a target letter. The investigation phase happens quietly. SBA auditors flag your file. They refer it to the Office of Inspector General. Investigators pull your bank records, talk to your employees, review your tax returns for the past five years. This can take months or over a year.

By the time you’re contacted, they’ve already built much of their case. That’s why your response in those first conversations matters so much. Talking to investigators without a lawyer – even if you think you’re just “clearing things up” – gives them statements they’ll use against you. We’ve seen Dallas business owners accidentally admit to elements of fraud charges while trying to explain innocent mistakes.

What Happens When You’re Under Investigation

Federal agents might call you directly asking to “discuss your loan application.” They might show up at your business or home. You might receive a grand jury subpoena for documents. Or you could get a target letter from the U.S. Attorney’s Office stating you’re under investigation and inviting you to make a statement.

None of these require you to talk. You have a Fifth Amendment right to remain silent. Use it. Even if you believe you did nothing wrong, federal agents are trained investigators who know how to ask questions that create inconsistencies in your story. Those inconsistencies become evidence of “consciousness of guilt” or outright false statements – which is itself a separate federal crime.

What you should do immediately: hire a federal criminal defense lawyer who handles white-collar cases in Dallas federal court. Not a general practice attorney. Not someone who mostly does state court. Federal loan fraud is a specific area requiring lawyers who understand the U.S. Sentencing Guidelines, cooperation agreements, proffer sessions, and how the Northern District of Texas prosecutes these cases.

Defenses That Actually Work in Dallas Federal Court

Good faith mistake is a real defense. If you genuinely misunderstood the application requirements – maybe you thought independent contractors counted as employees for payroll calculations, or you believed certain expenses were covered when they weren’t – that can negate criminal intent. Wire fraud and bank fraud require prosecutors to prove you knowingly made false statements with intent to defraud. Honest mistakes aren’t crimes.

Reliance on professional advice helps. If you worked with an accountant or attorney who guided your application and you relied on their expertise, that undermines the government’s claim that you knowingly committed fraud. We build this defense by gathering communications with advisors, showing you disclosed accurate information to them, demonstrating you asked questions when uncertain.

Lack of personal benefit matters for sentencing even if not a complete defense. If loan funds went entirely to legitimate business expenses – paying employees, rent, utilities – prosecutors have a harder time arguing this was intentional fraud versus aggressive interpretation of eligibility rules. When we can show you didn’t pocket the money for personal use, it changes the case calculus.

Cooperation and Sentencing in Dallas Cases

Some defendants face a choice: cooperate with the government’s investigation of other loan fraud schemes, or proceed to trial. Cooperation can significantly reduce your sentence under U.S.S.G. § 5K1.1 or Federal Rule of Criminal Procedure 35(b). We’ve seen defendants with seven-figure loan fraud exposure get probation by providing substantial assistance.

But cooperation isn’t risk-free. You’re testifying against others, which has personal safety implications. You’re admitting guilt to your own conduct. And there’s no guarantee the government will file a motion for downward departure – that’s discretionary. Before agreeing to cooperate, you need to understand exactly what they want, what you’d be admitting to, and what the realistic sentence reduction would be.

Why Spodek Law Group for Dallas Federal Cases

We handle federal criminal defense nationwide from our offices in New York. That might seem counterintuitive for a Dallas case, but federal court is federal court – the laws, procedures, and sentencing guidelines are the same whether you’re in the Northern District of Texas or Southern District of New York. What matters is whether your lawyer knows federal criminal procedure, has relationships with forensic accountants who can review SBA loan calculations, and has tried white-collar cases before federal judges and juries.

Todd Spodek grew up working in his father’s law firm – he’s a second-generation criminal defense attorney who’s handled everything from high-profile fraud cases to complex financial crime prosecutions. You might have seen him on Netflix representing Anna Delvey, or read about our representation of the juror in the Ghislaine Maxwell case. We take on cases other firms call unwinnable.

Our approach: we get involved early, before charges if possible. We conduct our own investigation – pulling your business records, interviewing witnesses, analyzing your loan application and use of funds. Sometimes we can present evidence to prosecutors that convinces them not to file charges. Other times we’re negotiating a plea to reduced charges with favorable sentencing recommendations. And when necessary, we go to trial.

You can reach us 24/7. Initial consultations are risk-free with no time limits – ask anything you need to understand your situation. We work on transparent fee structures so there are no surprises. And we use a completely digital portal so you can access all case information, submit documents, and communicate securely whether you’re in Dallas, Fort Worth, or anywhere in Texas.

What You Need to Do Right Now

Don’t wait until you’re indicted. By that point, your options narrow significantly. If you know there are issues with your PPP or EIDL loan – maybe you weren’t entirely accurate on the application, maybe you used funds for purposes that seem questionable now, maybe you hear the SBA is auditing your loan – get a lawyer involved now.

Don’t talk to anyone about your case except your attorney. Not your business partner. Not your accountant. Not your spouse. Federal investigators can subpoena all of them to testify. Everything you say to anyone other than your lawyer can be used against you.

Don’t destroy any documents or delete any communications. That’s obstruction of justice under 18 U.S.C. § 1519 – a separate felony that carries up to 20 years. Even if you think an email or text message is damaging, destroying evidence after you know there’s an investigation makes everything worse. Your lawyer can use problematic documents to build defenses or negotiate; prosecutors use destroyed documents to prove consciousness of guilt and add charges.

The reality of Dallas federal court: judges here take white-collar crime seriously. The Northern District of Texas has convicted numerous defendants in PPP fraud cases over the past two years. Sentences vary wildly based on loan amounts, how funds were used, whether you cooperated, your criminal history, and how well your lawyer argues mitigating factors at sentencing. We’ve seen defendants with similar loan amounts get probation versus five years based entirely on how the case was handled.

Call us before this gets worse. PPP and EIDL fraud investigations don’t just disappear – they either result in declined prosecution because your lawyer successfully presents your defense, or they result in indictment. Which outcome you get depends largely on having experienced federal criminal defense representation from the moment you learn you’re under investigation.