Maximum Prison Sentences for PPP and EIDL Fraud Convictions

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. 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.

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

Federal prosecutors charge PPP fraud cases aggressively. You won’t just face one count of wire fraud. You’ll face wire fraud for each application, bank fraud for each deposit, false statements for each certification, and money laundering for moving the money around afterward.

A Nevada man learned this lesson in August 2025 when he got over 15 years in prison for obtaining more than $11 million in PPP loans and laundering the funds through real estate purchases, gambling and luxury items. The money laundering charges alone added substantial prison time to his sentence.

Aggravated identity theft is particularly brutal because it carries a mandatory minimum of two years that runs consecutive to whatever sentence you get for the fraud itself. There’s almost no way around it. Even if the judge wants to give you probation on the fraud charges, you’re still serving two years in federal prison if identity theft is involved.

When the Government Stacks Charges

Prosecutors use charging decisions as leverage. They’ll indict you on every possible charge to pressure you into pleading guilty. Even if you go to trial and get acquitted on some counts, a conviction on just one or two charges can still mean years in federal prison given the statutory maximums.

We’ve seen cases where defendants faced 20-count indictments for PPP fraud involving three loan applications. Each application generated multiple charges – wire fraud for submitting it electronically, bank fraud for the deposit, false statements for lying about employees and payroll, and money laundering for spending the money.

Federal Sentencing Is Different From State Court

If you’ve only dealt with state criminal charges before, federal sentencing will shock you. There’s no parole in the federal system. You serve at least 85% of whatever sentence the judge imposes. A 46-month sentence means you’re doing roughly 39 months before release.

Federal judges calculate sentences using the United States Sentencing Guidelines, which are driven primarily by the loss amount and your criminal history. The guidelines are advisory, not mandatory – but judges rarely deviate significantly from them without a compelling reason.

PPP fraud cases also trigger restitution orders requiring you to pay back the full loan amount, plus interest. That restitution obligation survives bankruptcy and follows you for the rest of your life until it’s paid.

Why Spodek Law Group

We represent clients facing federal fraud charges nationwide. Todd Spodek is a second-generation criminal defense attorney who has handled hundreds of federal cases – including complex fraud prosecutions that other attorneys said were unwinnable.

Our team includes former federal prosecutors who understand exactly how the government builds these cases. We’ve represented clients in cases that made national headlines – the Anna Delvey trial covered by Netflix, juror misconduct in the Ghislaine Maxwell case, and a $12 million Ponzi scheme that resulted in only six months when prosecutors wanted years.

PPP fraud prosecutions aren’t slowing down in 2025. The statute of limitations was extended to ten years in 2022, which means the government has until 2032 or later to bring charges against people who committed fraud in 2020-2022. They’re still actively investigating and indicting defendants.

You need an attorney who knows federal sentencing inside and out. We analyze the loss amount calculations, identify weaknesses in the government’s case, negotiate with prosecutors for charge reductions and cooperate when it makes sense to reduce your exposure. Time matters in these cases – contact us immediately if you’re under investigation or have been charged.