Fort Worth 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 defending federal criminal cases across the country. If you’re under investigation for PPP or EIDL loan fraud in Fort Worth, you already understand the stakes. Federal prosecutors in the Northern District of Texas have made pandemic loan fraud enforcement a top priority, and Fort Worth business owners are facing serious charges for conduct that ranges from deliberate fraud schemes to honest mistakes on confusing applications.

Fort Worth sits in the Northern District of Texas, which also covers Dallas, but federal prosecutors in Fort Worth handle their own caseload. We’re seeing wire fraud charges, bank fraud charges, false statement charges – all related to SBA loan applications filed during the pandemic. The exposure is significant: wire fraud carries 20 years, bank fraud carries 30 years, and even making false statements carries 5 years in federal prison.

What Gets Fort Worth Business Owners Charged

The SBA distributed billions in emergency funding through PPP and EIDL programs. Fort Worth businesses – from restaurants to construction companies to consulting firms – applied for and received loans. Now federal investigators are auditing those loans, comparing applications against tax returns, matching claimed payroll numbers against actual payroll records, tracking where loan funds actually went.

Common allegations: 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 EIDL funds for personal expenses instead of business purposes. You applied for multiple loans using related business entities without disclosing the connections. You certified you had no delinquent federal debts when you did. Each of these can support federal fraud charges.

What catches people is the investigation timeline. The SBA flags your loan for audit – maybe because of a discrepancy in your forgiveness application, maybe because your loan amount seems disproportionate to your reported revenue, maybe because someone 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 you ever hear from them.

The Federal Investigation Process

By the time federal agents contact you, they’ve already gathered significant evidence. They’ve pulled your complete loan file from the SBA. They’ve subpoenaed your business bank records going back years. They’ve reviewed your tax returns. They’ve interviewed your employees, maybe even conducted surveillance on your business. They’ve built a timeline of where the money went and identified every discrepancy between what you claimed and what documentation shows.

Then they reach out. Maybe agents show up at your business or home wanting to “ask a few questions.” Maybe you receive a grand jury subpoena for documents. Maybe you get a target letter from the U.S. Attorney’s Office informing you that you’re under investigation for federal crimes. This is when most Fort Worth business owners realize they need a lawyer – but by this point, investigators have already done most of their work.

That’s why your response matters so much. Talking to agents without a lawyer – even if you think you’re just clearing up misunderstandings – gives them statements they’ll use against you. Any inconsistency between what you say now and what’s in your documentation becomes evidence of lying. Any admission gets locked in before you understand what you’re being charged with.

Criminal Intent and How Defenses Get Built

Federal fraud charges require proof of criminal intent. Wire fraud under 18 U.S.C. § 1343 requires prosecutors to prove you knowingly made false statements with intent to defraud. Bank fraud under 18 U.S.C. § 1344 requires the same. Making false statements under 18 U.S.C. § 1001 requires knowing and willful false statements.

This intent element is where defenses get built. Did you genuinely misunderstand whether independent contractors counted toward your employee numbers? The PPP program guidance was confusing and changed multiple times. Did you reasonably believe certain expenses qualified as covered uses when the rules were unclear? Did you rely on your accountant’s calculations without knowing they were incorrect?

Good faith mistake is a real defense. If you can show 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 professionals, demonstrating you disclosed accurate information to advisors, proving you used funds for business purposes even if not technically covered.

What About Cooperation Agreements?

Fort Worth 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, which has personal safety implications. You’re spending months in proffer sessions detailing everything you know. And there’s no guarantee the sentence reduction will be worth it – that’s entirely discretionary.

Before agreeing to cooperate, your lawyer needs to negotiate the terms. What exactly do prosecutors want you to admit? What’s the expected sentence benefit? What happens if your information turns out to be less useful than they hoped? What are your obligations if called to testify? These details matter because once you’ve signed a cooperation agreement and made statements, you can’t walk them back.

Fort Worth Federal Court Sentencing

The Northern District of Texas includes Fort Worth, Dallas, and several other divisions. Federal judges here have varied approaches to sentencing PPP fraud cases. Some are more lenient with first-time offenders who used funds partially for legitimate business purposes. Others view pandemic fraud as particularly egregious exploitation of a national emergency.

Sentencing calculations start with the U.S. Sentencing Guidelines. Fraud offense levels are based on loss amount – the loan amount factors in, but so does intended loss versus actual loss. Enhancements apply for sophisticated means, for affecting financial institutions, for being an organizer if others were involved. Then your criminal history category adjusts the guideline range.

A typical scenario: $100,000 in fraudulent PPP loans, no criminal history, partial legitimate use of funds. Base offense level might be 14-16. Add enhancements and you’re looking at 15-21 months in guideline range. Without cooperation or substantial mitigation, that’s likely your sentence. With cooperation, you might get probation. With aggravating factors like obstruction or sophisticated fraud, you could face significantly more time.

Why Spodek Law Group Handles Fort Worth 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, judicial temperament, and enforcement priorities. We learn those quickly by researching recent Fort Worth case outcomes, consulting with local counsel, and understanding what arguments resonate 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, or read about our representation of the juror in the Ghislaine Maxwell case. We’re known for taking on cases other firms won’t touch, cases they say are unwinnable.

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. And when necessary, we go to trial. We have former federal prosecutors on our team who understand how the government builds these cases and where the weaknesses are.

You can reach us anytime – we’re available 24/7 for consultations. Initial calls are risk-free with no time limits. We want you to understand your situation fully before deciding whether to hire us. We use a digital portal for all communications, documents, and billing so you can manage your case from anywhere. And we work on transparent fee structures without hidden costs.

What You Need to Do Right Now

Don’t talk to federal agents or investigators without a lawyer. Not to “clear things up.” Not to “tell your side of the story.” Everything you say gets documented and used against you. Agents are trained to ask questions that elicit admissions or create inconsistencies. Those inconsistencies become evidence of lying – which is itself a separate federal crime.

Don’t destroy any documents or delete communications. That’s obstruction of justice under 18 U.S.C. § 1519, carrying up to 20 years in federal prison. Even if an email or bank statement seems damaging, destroying it after you know there’s an investigation makes things exponentially worse. Your lawyer can work with problematic documents; prosecutors use destroyed documents to prove consciousness of guilt and add charges.

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

Hire a federal criminal defense lawyer who handles white-collar cases. Not a general practice attorney. Not someone who primarily does state court work. PPP loan fraud is a specific federal offense requiring knowledge of the Sentencing Guidelines, cooperation agreements, proffer procedures, and how to negotiate with Assistant U.S. Attorneys in the Northern District of Texas.

Time Matters More Than You Think

Once you’re contacted by investigators or receive a target letter, the case is already advanced. But it’s not too late. Your lawyer can still conduct their own investigation, gather exculpatory evidence, interview witnesses who support your version of events, and present a defense to prosecutors before charges are filed. Sometimes that’s enough to convince them criminal charges aren’t warranted.

If charges are inevitable, early involvement means better plea negotiations. Prosecutors give more favorable deals to defendants who accept responsibility early versus those who fight until trial and then plead guilty. We’ve negotiated agreements that reduce 20-year wire fraud charges to misdemeanors with probation by getting involved early and demonstrating our client’s cooperation.

The worst thing you can do is ignore this and hope it goes away. Federal investigations don’t disappear. They either result in declined prosecution – which requires your lawyer actively advocating for that outcome – or they result in indictment. Get representation now while you still have maximum leverage to shape how this resolves. Call us before this gets worse.