FEDERAL CRIMINAL LAWYERS

Alabama PPP Loan Fraud Lawyers

You got a letter from the SBA Office of Inspector General last week, maybe requesting PPP loan documentation for your Birmingham business with a 10-day response deadline, maybe after FBI agents showed up at your Montgomery office asking questions about your 2020 PPP loan application and employee count, maybe after you received a federal grand jury subpoena for your Mobile company’s payroll records from 2020-2021, maybe after a criminal complaint was filed in the Northern District alleging you inflated your Huntsville business’s employee numbers on the PPP application, maybe after an investigation letter arrived about your Tuscaloosa 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 Alabama 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 “Alabama 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 Alabama’s three federal districts—Northern District in Birmingham, Middle District in Montgomery, and Southern District in Mobile—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. Alabama PPP fraud cases are prosecuted in three federal districts—Northern District based in Birmingham and Huntsville, Middle District based in Montgomery, and Southern District based in Mobile—under 18 U.S.C. § 1014 which carries up to 30 years in federal prison and a $1 million fine. The reality in Alabama is that actual sentences are far below the statutory maximum. In 2024, Quincy T. Thomas was sentenced to 41 months in federal prison for a $60,000 PPP loan fraud case in the Northern District. Cases prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama show a pattern: small loans ($20K-$75K) result in 12-30 months average sentences, medium loans ($75K-$350K) result in 30 to 60 months in federal prison, and large loans over $350K can result in 60-120 months depending on aggravating factors. You face three possible paths: civil resolution where you repay the loan plus penalties with no prison time (only available early in investigation), 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 that errors were honest mistakes. The problem is that anything you say can be used against you in a federal criminal prosecution. If your response contradicts other evidence, you’ve provided additional fraud evidence. In Alabama, approximately 40% of PPP investigations with early legal representation result in civil resolutions, while 80% without counsel proceed to criminal indictment. The critical decision point is in the first 10 days. Hire a federal criminal defense lawyer who can assess whether your conduct constitutes criminal fraud, and potentially 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 Alabama PPP cases from 2023-2025, 90% of defendants who spoke to FBI without an attorney were subsequently 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. Alabama’s three federal districts handle PPP fraud prosecutions differently. The Northern District covering Birmingham, Huntsville, and surrounding areas has prosecuted 47 PPP fraud cases between 2023-2025, with Assistant U.S. Attorneys focusing on cases with clear false statements even if the loan amount is relatively small—the Quincy T. Thomas case involved only $60,000 but still resulted in 41 months federal prison. The Middle District based in Montgomery has prosecuted 28 cases in the same period, typically prioritizing loans over $150,000 with multiple false statements. The Southern District covering Mobile and the Gulf Coast has prosecuted 34 cases and has been the most aggressive, pursuing criminal charges even for loans as small as $20,000 if the application contained obvious false statements. Where your case is prosecuted matters because federal judges in Birmingham, Montgomery, and Mobile have different sentencing tendencies. Our lawyers have handled PPP fraud cases in all three Alabama federal districts and understand how local prosecution practices affect your case strategy. 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 Alabama 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 18 U.S.C. § 1014 false statement charges. Many PPP fraud cases in Alabama have resulted in reduced charges, reduced sentences, or outright dismissal not because the defendant was factually innocent, but because the government couldn’t prove knowing intent beyond a reasonable doubt, or because the defendant’s cooperation provided substantial assistance under USSG §5K1.1 resulting in sentence reductions of 40-60%, or because constitutional violations required suppression of key evidence. 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.