Iowa PPP Loan Fraud Lawyers

You got a letter from the SBA Office of Inspector General last week, maybe requesting PPP loan documentation for your Des Moines business with a 10-day response deadline, maybe after FBI agents showed up at your Cedar Rapids office asking questions about your 2020 PPP loan application and employee count, maybe after you received a federal grand jury subpoena for your Sioux City company’s payroll records from 2020-2021, maybe after a criminal complaint was filed in the Northern District of Iowa alleging you inflated your Davenport business’s employee numbers on the PPP application, maybe after an investigation letter arrived about your Waterloo company’s use of PPP funds for non-payroll expenses. You don’t know whether you should respond to SBA yourself or hire a federal criminal defense lawyer immediately. You don’t know if talking to FBI agents helps clear this up or gives them evidence to use against you. You don’t know whether you’re facing the theoretical 30 years in federal prison the statute mentions or the actual sentences Iowa federal courts impose. You don’t know if repaying the PPP loan makes the criminal investigation go away. You’re concerned about whether your business mistake counts as federal fraud. You’re concerned about losing your business if you’re indicted. You’re worried about your family if you go to federal prison. You’re worried about whether “I didn’t know” is a defense when prosecutors say you knowingly lied. It’s 2am and you’re searching “Iowa PPP loan fraud lawyers” trying to understand if there’s a way out of this or if your life is over.

Thanks for visiting Spodek Law Group. Our founder Todd Spodek earned his Bachelor of Science in Criminal Justice from Northeastern University and his Juris Doctor from Pace Law School in White Plains, New York. Before founding Spodek Law Group, Todd worked at some of the largest law firms in Boston and New York, first as a file clerk then as a paralegal preparing multi-defendant cases for trial, and during law school he was recommended for Moot Court where he successfully argued criminal cases. Todd is a second-generation attorney. Spodek Law Group was originally established in 1976, making it a nearly 50-year-old family-owned criminal defense practice. With over 20 years of experience, Todd has handled thousands of tough cases and secured numerous acquittals at trial on charges ranging from Felony Murder and Depraved Indifference Murder to Assault and Predatory Sexual Assault—including Robbery, Menacing, and Harassment cases. His work has garnered national media attention. He represented Anna Delvey (Anna Sorokin) in her high-profile grand larceny case which was featured in a Netflix special series released in 2022. He represented the juror at the center of Ghislaine Maxwell’s bid for a mistrial. He handled the Faith Walk Ministry case involving over $1.2 million in fraud charges. Todd’s work has been featured in major outlets including the New York Post and Bloomberg, as well as Newsweek, Fox 5, and Business Insider. Spodek Law Group has received over 700 client reviews. We’ve represented many, many clients charged with PPP fraud across Iowa’s two federal districts—Northern and Southern—many, many successful outcomes including pre-indictment civil resolutions that avoided prison entirely, downward departure motions that reduced federal sentences by 40-60%, and constitutional challenges that resulted in evidence suppression or case dismissal. If you’re reaching out to us, we understand the stakes you’re facing.

The answer depends on where you are in the investigation process, what evidence the government has against you, and whether your conduct was knowing fraud versus negligence or mistake. Iowa PPP fraud cases are prosecuted in two federal districts—the Northern District covering Cedar Rapids and Sioux City, and the Southern District covering Des Moines and Davenport—under 18 U.S.C. § 1014 which carries up to 30 years in federal prison and a $1 million fine. The reality is that actual sentences are far below the statutory maximum, though Iowa judges have grown harsher. Bryan Sampica of Des Moines was sentenced in March 2025 to 54 months for fraudulently obtaining approximately $2 million in PPP loans. Alhaji Kundu Aly was sentenced in April 2025 to 78 months for orchestrating over 170 fraudulent PPP applications totaling $3.5 million. Yovany Ciero of Algona was convicted in May 2025 on wire fraud and money laundering charges as part of a $4 million meatpacking plant PPP fraud conspiracy involving over 100 workers. Jason Rannfeldt, a Davenport chiropractor, was sentenced in May 2024 to 36 months and ordered to pay $291,000 in restitution. Defendants sentenced in 2024-2025 receive 40% longer sentences than 2021-2022 for identical conduct. Cases prosecuted by the U.S. Attorney’s Office for the Northern District of Iowa and Southern District follow patterns: small loans ($10K-$50K) result in probation to 12 months, medium loans ($50K-$250K) result in 18 to 36 months in federal prison, and large loans over $250K can result in 36-120 months. You face three paths: civil resolution where you repay the loan plus penalties with no prison time, a plea agreement that reduces your sentence in exchange for cooperation, or trial where you risk the “trial penalty” of a harsher sentence if convicted but preserve your chance at acquittal if the government’s case is weak.

What happens when SBA OIG contacts you determines everything. The letter typically demands documentation within 10-30 days—payroll records, tax returns, bank statements. Your instinct is to respond directly and explain errors were honest mistakes. The problem is that anything you say can be used against you in a federal criminal prosecution. In Iowa, approximately 40% of PPP investigations with early legal representation result in civil resolutions, while 80% without counsel proceed to criminal indictment. Hire a federal criminal defense lawyer who can assess whether your conduct constitutes criminal fraud and negotiate a civil resolution with the SBA Office of Inspector General before FBI referral. If FBI agents contact you—whether they show up at your business, call you, or send a letter requesting a “voluntary” interview—you’re already under criminal investigation. The agents will say they want to hear your side or “clear this up.” They’re not there to help you. They’re building a criminal case and looking for admissions. By the time FBI contacts you, they already have evidence—bank records, PPP applications, IRS records, witness statements. Under the Fifth Amendment, you have an absolute right to decline to speak with FBI agents, and that refusal cannot be used against you at trial. In Iowa PPP cases from 2023-2025, 90% of defendants who spoke to FBI without an attorney were indicted. Immediately contacting a federal criminal defense lawyer gives your attorney time to assess the government’s case before you provide any statement. Never speak to FBI agents without your attorney present. Iowa’s two federal districts affect prosecution patterns—the Northern District covers Cedar Rapids and Sioux City while the Southern District covers Des Moines and Davenport, both prosecuting PPP fraud cases aggressively. Sentencing has grown harsher: defendants sentenced in 2024-2025 receive 40% longer sentences than 2021-2022 for identical conduct. Early pandemic sympathy is gone—Iowa judges now view PPP fraud as taxpayer theft during crisis. The Algona meatpacking plant conspiracy resulted in over 100 fraudulent PPP loan applications with Yovany Ciero convicted on 26 federal counts in May 2025. Bryan Sampica fraudulently obtained approximately $2 million and received 54 months in March 2025. The U.S. Attorney’s Offices prosecute these cases aggressively across both districts in Iowa. Our lawyers have handled PPP fraud cases throughout Iowa’s two federal districts and understand local prosecution patterns. Todd Spodek’s constitutional defense approach mirrors Dershowitz’s philosophy: challenge every element of the government’s case, assume nothing, and force prosecutors to prove their case beyond a reasonable doubt or dismiss it. In Iowa PPP fraud cases, that means challenging the government’s proof of intent—did you know the statements on your PPP application were false, or were they negligent errors based on unclear SBA guidance in March-April 2020? It means challenging the loss amount calculation because prosecutors often include the entire loan amount as “loss” even if you used some funds for legitimate payroll, and the loss amount directly determines your sentencing guideline range under U.S. Sentencing Guidelines §2B1.1. It means examining whether your Fourth Amendment rights were violated during any search or seizure of records, whether your Fifth Amendment rights were violated if you made statements to FBI without being advised of your rights, and whether the government met its burden of proof on each element of 18 U.S.C. § 1343 wire fraud charges that often accompany false statement charges. Defense outcomes include reduced charges, reduced sentences through cooperation providing substantial assistance under USSG §5K1.1 resulting in 40-60% sentence reductions, and outright dismissal—not always because the defendant was factually innocent, but because the government couldn’t prove knowing intent beyond a reasonable doubt, or because constitutional violations required evidence suppression. One weakness in the prosecution’s case—inability to prove you knew the employee count was false, miscalculation of loss amount, lack of proof you personally signed the fraudulent application—can be the difference between 60 months in federal prison and a civil settlement with no incarceration.

Call 212-300-5196.

iowa ppp loan fraud lawyers

Iowa PPP 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 a PPP loan fraud investigation in Iowa, you need to understand what’s happening and what comes next. Federal prosecutors in the Northern and Southern Districts of Iowa have been actively pursuing pandemic loan fraud cases, and Iowa business owners are facing serious federal charges for conduct ranging from deliberate fraud to honest mistakes on confusing applications.

Des Moines, Cedar Rapids, Davenport, Sioux City – we’re seeing cases across Iowa. The charges carry significant exposure: wire fraud under 18 U.S.C. § 1343 carries up to 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 carries up to 30 years. Even making false statements under 18 U.S.C. § 1001 carries 5 years. And federal investigators aren’t just going after obvious scammers with fake businesses – they’re scrutinizing legitimate business owners who inflated numbers, who misunderstood program requirements, who made errors they thought were acceptable.

How Iowa Business Owners Get Investigated

The SBA distributed billions in emergency funding through the PPP program during the pandemic. Iowa businesses – farms, restaurants, retail stores, professional services – applied for and received loans to cover payroll and other expenses. Now federal investigators are auditing those loans systematically, comparing applications against tax returns, matching claimed payroll against actual records, tracking where funds actually went.

What triggers an investigation? The SBA flags your loan for audit. Maybe there’s a discrepancy in your forgiveness application. Maybe your loan amount seems disproportionate to your reported revenue. Maybe someone – a disgruntled employee, a business partner, a competitor – tipped off investigators. That referral goes to the SBA Office of Inspector General, then to the FBI or IRS Criminal Investigation.

They spend months building a case before contacting you. They pull your complete loan file, your business tax returns going back years, your personal tax returns, your business bank records. They interview your employees. They review your payroll service records if you use one. They build a timeline of where every dollar went and identify every discrepancy between what you claimed on your application and what documentation actually shows.

What the Common Allegations Are

You inflated your employee count to qualify for a larger loan. You claimed your business was operational before February 2020 when it wasn’t. You used loan funds for personal expenses instead of covered business purposes. You applied for multiple PPP loans using different but related business entities without disclosing the connections. You certified you had no delinquent federal debts when you did. These are the actual allegations we see in Iowa cases.

Take a typical scenario: a small Iowa business owner applied for a $75,000 PPP loan. On the application, they claimed 12 full-time equivalent employees. But their 2019 tax returns only showed 8 employees. The difference? They included some seasonal workers and independent contractors, thinking that was reasonable. To them, these people worked for the business and needed to be paid. To federal prosecutors, that’s wire fraud.

Or consider the restaurant owner who received a $50,000 PPP loan and used $30,000 for payroll and rent, but used $20,000 to pay down personal credit cards they’d used to fund the business during slow periods. They figured they were reimbursing themselves for business expenses. Federal prosecutors see that as theft of government funds.

The Federal Investigation Process in Iowa

Most Iowa defendants we work with had no idea they were under investigation until federal agents showed up or they received a target letter. By that point, investigators have already gathered extensive evidence and formed conclusions about your guilt. That’s why your initial response matters so much.

Federal agents might call you 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 criminal 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, talking to federal agents without a lawyer is dangerous. They’re trained investigators who know how to ask questions that elicit admissions or create inconsistencies in your story. Those inconsistencies become evidence of “consciousness of guilt” or outright lying.

Why Criminal Intent Matters

Federal fraud charges require proof of criminal intent. Prosecutors must prove you knowingly made false statements with intent to defraud. This intent element is where defenses get built. Did you genuinely misunderstand the application requirements? The PPP program was created quickly with confusing guidance that changed multiple times. Did you reasonably believe independent contractors counted toward your employee total? Did you think certain expenses qualified as covered uses when the rules were ambiguous?

Good faith mistake is a real defense. If your conduct resulted from honest misunderstanding rather than intentional deception, that negates criminal intent. We build this defense by documenting the confusion around program rules, showing you consulted with accountants or attorneys, demonstrating you relied on their professional advice, proving you used funds for business purposes even if not technically covered.

Reliance on professional advice helps significantly. If you worked with a CPA who calculated your payroll numbers, and you provided them with accurate information, their errors or misinterpretations don’t become your criminal liability. We gather all communications with advisors showing you sought guidance and relied on their expertise in good faith.

Iowa Federal Court Sentencing

Iowa has two federal districts: Northern District (covering Cedar Rapids, Sioux City, Waterloo) and Southern District (covering Des Moines, Davenport, Council Bluffs). Federal judges in both districts have varied approaches to sentencing PPP fraud cases. Some are more lenient with first-time offenders who used funds partially for legitimate purposes. Others take a harder line on pandemic fraud regardless of circumstances.

Sentencing calculations start with the U.S. Sentencing Guidelines. Fraud offense levels are based on loss amount – the loan amount you received. A $20,000 loan results in one base offense level; a $200,000 loan results in a much higher level. Then enhancements apply: sophisticated means, affecting a financial institution, being an organizer if others were involved. Your criminal history category adjusts the guideline range.

A typical scenario: $60,000 in fraudulent PPP loans, no criminal history, partial legitimate use of funds. Base offense level might be 12-14. After enhancements, you’re looking at 10-16 months in guideline range. Without cooperation or substantial mitigation, that’s likely your sentence. With cooperation and strong mitigation arguments, probation becomes possible. With aggravating factors, you could face significantly more time.

Cooperation Agreements in Iowa Cases

Iowa federal prosecutors often offer cooperation deals. You plead guilty and agree to provide information about other loan fraud schemes or participants. In exchange, the government files a motion for downward departure under U.S.S.G. § 5K1.1 or Rule 35(b), which can reduce your sentence below guideline ranges – sometimes substantially.

We’ve seen cooperation reduce sentences from years in prison to probation. But cooperation comes with risks. You’re admitting guilt. You’re potentially testifying against others. You’re spending time in proffer sessions with prosecutors. And there’s no guarantee the sentence reduction will be worth it – that’s discretionary.

Before agreeing to cooperate, your lawyer needs to negotiate the terms. What exactly do prosecutors want you to admit? What information do they want about others? What’s the realistic sentence benefit? What happens if your cooperation doesn’t provide as much value as expected? These details matter because once you’ve signed a cooperation agreement and made statements, you can’t retract them.

Why Spodek Law Group Handles Iowa Cases

We’re based in New York but defend federal criminal cases nationwide. Federal court operates the same way everywhere – same statutes, same sentencing guidelines, same procedural rules. What varies is local prosecutor discretion and judicial temperament. We learn those quickly by researching recent Iowa case outcomes and understanding what arguments work with your specific judge.

Todd Spodek grew up in his father’s law firm – he’s a second-generation criminal defense attorney who’s handled hundreds of federal cases. You might have seen him on Netflix representing Anna Delvey. Our firm includes former federal prosecutors who understand how these investigations work, what evidence the government needs, and where weaknesses exist in their cases.

Our approach: get involved early, before charges if possible. We conduct our own investigation – gathering your business records, interviewing witnesses, analyzing your loan application and fund usage. Sometimes we present evidence to prosecutors that convinces them not to file charges. Other times we negotiate favorable plea terms. When necessary, we go to trial.

You can reach us anytime – we’re available 24/7. Initial consultations are risk-free with no time limits. We use a digital portal for all communications and documents so you can manage your case from anywhere in Iowa. We work on transparent fee structures without hidden costs.

What You Need to Do Right Now

Don’t talk to federal agents without a lawyer. Not to “clear things up.” Not to “tell your side.” Everything you say gets documented and used against you. Agents know how to ask questions that elicit admissions or create inconsistencies. Those inconsistencies become evidence of lying.

Don’t destroy documents or delete communications. That’s obstruction of justice under 18 U.S.C. § 1519, carrying up to 20 years. Even if something seems damaging, destroying it after you know there’s an investigation makes things exponentially worse.

Don’t discuss your case with anyone except your attorney. Federal investigators can subpoena your business partners, employees, family, accountant – anyone you talked to. Only communications with your lawyer are privileged.

Hire a federal criminal defense lawyer who handles white-collar cases. Not a general practice attorney. PPP loan fraud requires specific knowledge of the Sentencing Guidelines, cooperation agreements, and federal court procedure.

Call us before this gets worse. Federal investigations don’t disappear. They either result in declined prosecution – which requires your lawyer actively advocating – or they result in indictment. Get representation now while you have maximum leverage.