massachusetts ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers. We’re a second-generation law firm managed by our lead attorney – with over 40 years of combined experience defending federal criminal cases across the country. If you’re facing a PPP or EIDL loan fraud investigation in Massachusetts, you’re dealing with serious federal charges. Prosecutors in the District of Massachusetts have been aggressive about pursuing pandemic loan fraud cases, and Massachusetts business owners are getting charged for conduct that ranges from deliberate fraud schemes to honest mistakes on confusing applications.

Boston, Worcester, Springfield, Cambridge – we’re seeing cases throughout Massachusetts. The exposure is significant: wire fraud carries 20 years in federal prison, bank fraud carries 30 years, and making false statements carries 5 years. Federal investigators aren’t just targeting obvious scammers – they’re scrutinizing legitimate business owners who inflated payroll numbers, who misunderstood eligibility requirements, who used funds in ways they thought were acceptable but technically weren’t.

Why Massachusetts Has So Many PPP Fraud Prosecutions

Massachusetts saw billions in PPP and EIDL loans distributed during the pandemic. Boston-area businesses, restaurants, healthcare providers, tech startups – thousands of companies applied for and received emergency funding. Now federal investigators are auditing those loans systematically, comparing applications against tax returns, matching claimed payroll against actual records, tracking where funds went by reviewing business bank accounts.

The District of Massachusetts U.S. Attorney’s Office in Boston has made PPP fraud a priority. They’ve prosecuted dozens of cases already and they’re not slowing down in 2025. What gets people charged? You claimed 30 employees when you actually had 22. You said your business was operational since 2019 when it didn’t start until 2020. You used EIDL funds to pay personal expenses instead of business expenses. You received multiple loans using related business entities without disclosing the connections. These are the actual allegations we see.

How Investigations Start

The SBA flags your loan for audit. Maybe there’s a discrepancy between your application and your forgiveness request. Maybe your loan amount seems disproportionate to your reported revenue. Maybe an algorithm identifies unusual patterns. Maybe someone tips off investigators – a disgruntled employee, a former business partner. That referral goes to the SBA Office of Inspector General, then to the FBI or IRS Criminal Investigation.

They spend months building their case before you know they’re investigating. They pull your complete loan file from the SBA. They subpoena your business bank records going back years. They review your tax returns. They interview your employees. They sometimes conduct surveillance on your business. They build a comprehensive timeline of where every dollar went and identify every discrepancy between what you claimed and what documentation shows.

By the time federal agents contact you – whether by phone call, home visit, grand jury subpoena, or target letter – they’ve already gathered extensive evidence and formed conclusions about your guilt. That’s why your initial response matters so much. Talking without a lawyer can turn a borderline case into a certain conviction.

DEFENSE TEAM SPOTLIGHT

Todd Spodek

Lead Attorney & Founder

Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

NY Bar Admitted Multi-State Licensed Federal Courts

Meet the Full Team

The Charges and What They Mean

Wire fraud under 18 U.S.C. § 1343 is the most common charge. If you submitted a loan application electronically and made false statements, that’s wire fraud. Maximum sentence: 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 applies when you made false statements to obtain funds from a financial institution. Maximum sentence: 30 years. Making false statements under 18 U.S.C. § 1001 covers lying to the federal government. Maximum sentence: 5 years.

Legal Scenario: What Would You Do?

Scenario

You submitted a PPP loan application during COVID and now realize some employee count numbers may have been inaccurate.

Could this be considered fraud?

Attorney's Answer

Inaccuracies in PPP applications can trigger federal fraud charges carrying up to 20 years in prison. However, honest mistakes differ from intentional misrepresentation. Documentation of your good-faith efforts is critical to your defense.

This is general information only. Contact us for advice specific to your situation.

Prosecutors often stack these charges. You might face wire fraud for the initial application, bank fraud for submitting it to the lender, and false statements for certifying the information was accurate. Each count carries separate penalties even though they all relate to the same conduct. This gives prosecutors enormous leverage during plea negotiations – agree to plead to one count and they’ll dismiss the others.