pennsylvania ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers – a second-generation law firm managed by our lead attorney, with over 40 years of combined experience in federal criminal defense. If you received an SBA audit letter, a federal subpoena, or investigator contact about your PPP or EIDL loan – you’re facing a federal investigation. Pennsylvania has seen aggressive federal prosecution of pandemic loan fraud cases in Philadelphia, Pittsburgh, and Harrisburg.

This article covers PPP and EIDL fraud charges in Pennsylvania, how federal investigations work, penalties you face, and what to do immediately. We represent clients in Pennsylvania’s Eastern, Middle, and Western Districts.

PPP and EIDL Fraud Prosecutions in Pennsylvania

Pennsylvania’s three federal districts – Eastern (Philadelphia), Middle (Harrisburg), and Western (Pittsburgh) – have prosecuted hundreds of pandemic loan fraud cases since 2020. The SBA Office of Inspector General identified billions in potentially fraudulent loans statewide. Federal prosecutors work with the FBI, IRS Criminal Investigation, and SBA investigators.

PPP and EIDL loans served different purposes. PPP covered payroll costs to keep employees working. EIDL provided economic injury disaster loans for operating expenses. Both programs required truthful applications. Lying on either – about your business, employees, revenue, or how you spent funds – is federal fraud.

Investigators prioritize larger loans but prosecute smaller amounts too. They cross-reference your applications with IRS tax returns, state employment records, banking data, and credit reports. Discrepancies trigger investigations. Maybe you inflated payroll on your PPP application. Maybe you claimed higher revenue on your EIDL application than you reported to the IRS. Maybe you applied using fake businesses. Maybe you spent the money on personal expenses.

Federal Charges You’re Facing

Wire fraud is the primary charge. Submitting electronic loan applications uses interstate wire communications – that’s 18 U.S.C. § 1343, carrying up to 20 years in prison.

Bank fraud applies when you lie to financial institutions. That’s 18 U.S.C. § 1344 – maximum 30 years in prison and $1 million in fines.

Making false statements to the SBA violates 18 U.S.C. § 1014. If you lied about employee counts, payroll expenses, revenue, or business eligibility – you’re facing 30 years in prison.

DEFENSE TEAM SPOTLIGHT

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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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Money laundering charges get added when you moved funds between accounts, transferred money overseas, or attempted to hide spending. That’s 18 U.S.C. § 1956 – up to 20 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.

Conspiracy charges apply when anyone else was involved – accountants, business partners, loan brokers. If they helped prepare false documents or knew about inflated numbers, prosecutors charge conspiracy. Conspiracy carries the same penalties as the underlying fraud.

Intent Requirements