Maximum Prison Sentences for PPP and EIDL Fraud Convictions

Thanks for visiting Federal Lawyers – a second-generation law firm managed by our lead attorney. We have over 40 years of combined experience defending clients in high-stakes federal cases. If you’re facing PPP or EIDL fraud charges, you need to understand the maximum prison exposure you’re dealing with. Federal prosecutors don’t play around with pandemic relief fraud – they’ve charged over 3,000 people since 2020, and the sentences keep getting longer.

The Statutory Maximums Are Terrifying

Bank fraud under 18 USC §1344 carries up to 30 years in federal prison and a $1 million fine. Wire fraud under 18 USC §1343 carries 20 years – or 30 years if the fraud affects a financial institution. Making false statements to the SBA or a bank under 18 USC §1014 also carries 30 years and a million-dollar fine.

That’s just the fraud charges. PPP and EIDL cases almost always involve multiple counts. Conspiracy to defraud the government adds five years. Money laundering under 18 USC §1956 adds 20 years per violation – and prosecutors love stacking money laundering charges on top of the underlying fraud. If you used someone else’s Social Security number or EIN to get the loan, you’re looking at a mandatory two-year consecutive sentence for aggravated identity theft under 18 USC §1028A.

Do the math. A typical PPP fraud case charged as bank fraud, wire fraud, false statements, money laundering and identity theft could theoretically carry over 100 years in federal prison. The statutes allow judges to impose these sentences consecutively, not concurrently.

What Sentences Are Courts Actually Imposing?

Judges aren’t handing out 100-year sentences for PPP fraud – but they’re not going easy either. In June 2025, Richard Nieto got 46 months for fraudulently obtaining $913,000 in PPP loans. He also got hit with $962,438 in restitution. In the same month, Renetta Golden-Larimore received 51 months for her role in obtaining over $900,000 in fraudulent PPP loans.

Even smaller cases result in prison time. A Cincinnati defendant got 18 months for a $21,000 PPP loan fraud in March 2025. He used the money for DoorDash, Grubhub, hotels and jail commissary – and now he’s doing time in a federal facility.

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.

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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.

Here’s what should scare you: defendants sentenced in 2024-2025 receive prison terms 40% longer on average than those sentenced in 2021-2022 for identical conduct. Early in the pandemic, some judges showed leniency. Those days are over. Federal judges in 2025 include prison time in nearly every PPP and EIDL fraud sentencing – regardless of the amount involved.

Why Multiple Charges Mean Longer Sentences