Louisiana PPP 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. If you’re facing PPP loan fraud charges in Louisiana, you’re dealing with federal prosecutors in the Eastern, Middle, or Western Districts who have prioritized pandemic fraud enforcement.

Louisiana businesses received substantial PPP funding during 2020 and 2021. Federal prosecutors in New Orleans, Baton Rouge, Lafayette, Shreveport, and other divisions have aggressively prosecuted fraud cases – securing significant prison sentences for defendants convicted of submitting false applications.

Louisiana PPP Fraud Prosecutions

Louisiana has three federal districts. The Eastern District covers New Orleans and surrounding parishes. The Middle District covers Baton Rouge. The Western District covers Lafayette, Lake Charles, Shreveport, Monroe, and Alexandria. All three districts have prosecuted PPP fraud cases in coordination with FBI fraud task forces and the SBA Office of Inspector General.

A New Orleans restaurant owner applies for PPP loans for three different businesses. Claims 55 employees and $1.1 million in annual payroll. Reality? He had 18 employees and $320,000 in actual payroll. Inflated numbers to get larger loans. Used funds for a fishing boat, vehicle purchases, gambling at Harrah’s. Federal investigators compared his applications against Louisiana Workforce Commission records and IRS filings – discrepancies everywhere. He’s now facing wire fraud, bank fraud, and false statements charges.

Or consider a Baton Rouge case. Someone claims to operate a construction company with $800,000 in revenue. Applies for a PPP loan, receives $250,000. The business barely existed – minimal operations, fabricated revenue, hardly any employee history. SBA auditors identify the fraud during compliance reviews. Federal charges follow.

How Louisiana Investigations Start

Most investigations begin with SBA Office of Inspector General data analytics. Software flags suspicious applications – businesses without tax histories, multiple loans from the same location, inconsistent information across databases, loans deposited into newly opened accounts.

Once flagged, FBI agents in Louisiana investigate. They subpoena bank records showing every transaction from the moment PPP funds hit your account. They pull tax returns for your business and personal finances. They review Louisiana Secretary of State business registrations. They interview employees, accountants, business partners, anyone connected to your company.

Some investigations start with whistleblowers. An employee reports that you inflated payroll numbers. A business partner who had a falling out contacts federal agents. A bank compliance officer files a Suspicious Activity Report after noticing unusual transactions. Once you’re under investigation, federal agents build their case methodically over months.

Federal Charges in Louisiana PPP Cases

Wire fraud under 18 U.S.C. § 1343 forms the foundation of most PPP prosecutions. Every electronic communication related to the fraud is a separate count. Submit your application online? Wire fraud. Receive funds electronically? Another count. Email documents to the lender? Another count.

Prosecutors charge multiple counts aggressively. We’ve seen Louisiana indictments with 20+ wire fraud counts for PPP applications involving multiple businesses. Each count carries up to 20 years in federal prison. These sentences can run consecutively – meaning 20 years per count adds up fast.

Bank fraud charges under 18 U.S.C. § 1344 add up to 30 years per count when the fraud involved a financial institution. Most PPP loans went through private lenders, so bank fraud charges are standard. False statements under 18 U.S.C. § 1001 add 5 years per count – each false certification on your application is a separate offense.

Money laundering charges under 18 U.S.C. § 1956 come up when defendants moved fraudulent proceeds. Transfer funds between accounts? Prosecutors call that laundering. Make large purchases or cash withdrawals? Laundering. Each transaction can be charged separately, adding 20 years per count.

Louisiana Federal Sentencing

Federal judges in Louisiana follow the U.S. Sentencing Guidelines. Your sentence is calculated based on loss amount and aggravating factors. In PPP fraud cases, loss is typically the full amount you received fraudulently.

Loss over $250,000 adds 10 levels to your base offense level. Over $550,000? Fourteen levels. Over $1.5 million? Eighteen levels. A first-time offender with no criminal history facing a $700,000 fraud is looking at roughly 51-63 months under the guidelines – over four years minimum.

Aggravating factors increase sentences further. If you organized or led the fraud scheme – recruited others, managed multiple applications, coordinated the operation – that’s a 4-level enhancement. Sophisticated means – fake documents, shell companies, encrypted communications – adds 2 levels. Obstruction of justice adds another 2 levels if you destroyed evidence or lied to investigators.

Defense Strategies in Louisiana

Every PPP fraud case is defensible with the right legal strategy. The government must prove intent to defraud – that you knowingly made false statements with the purpose of obtaining funds you weren’t entitled to. If we can show lack of intent, that defeats the charges.

PPP rules were confusing, especially in early 2020. The SBA issued conflicting guidance. Lenders provided inconsistent information. Accountants misunderstood eligibility requirements. If you made mistakes based on confusion or reliance on professional advice, that’s negligence – not fraud. Negligence isn’t criminal.

We also challenge loss calculations. The government claims $800,000 in loss, but maybe you used $300,000 legitimately for payroll, rent, and utilities. If we prove partial legitimate use, we reduce the loss amount. Lower loss means lower sentencing guidelines and less prison time.

Sometimes we challenge evidence as improperly obtained. Did agents execute search warrants based on false or misleading affidavits? Did they question you without Miranda warnings? Did they coerce statements or violate your constitutional rights? We file suppression motions, and successful motions can destroy the government’s case.

Pre-Indictment Opportunities

The best time to hire federal criminal defense lawyers is before you’re indicted. During the investigation phase, we can communicate with Assistant U.S. Attorneys in Louisiana, present exculpatory evidence, negotiate resolutions that prevent charges.

We’ve secured pre-indictment agreements where Louisiana clients avoided charges entirely by making restitution and cooperating with investigators. Once you’re indicted, prosecutors have committed resources and have less incentive to negotiate favorable outcomes.

Cooperation and Sentence Reduction

If you have information about co-conspirators, other fraud schemes, or organized criminal activity, cooperation can dramatically reduce your sentence. Under U.S.S.G. § 5K1.1, prosecutors can file substantial assistance motions that reduce sentences by 40%, 50%, even 60%.

But cooperation has risks. You’re testifying against others, which creates potential safety concerns. You need attorneys who understand the cooperation process, negotiate favorable agreements, and protect your interests throughout.

Why Spodek Law Group for Louisiana Cases

We’ve built our reputation on complex, high-stakes federal cases. Todd Spodek represented Anna Delvey in the fraud case that became a Netflix series – a prosecution that required innovative defense strategies. We handled juror misconduct in the Ghislaine Maxwell trial. We secured a 6-month sentence for a client facing decades in prison for a $12 million Ponzi scheme.

Our team includes former federal prosecutors who understand how the government builds fraud cases. They know the investigation techniques, the charging decisions, the pressure tactics prosecutors use. That insider knowledge informs our defense strategies.

We’re available 24/7 through our digital portal, enabling us to represent clients nationwide including throughout Louisiana. When you receive a target letter, when agents execute a search warrant, when you’re arrested – you need immediate legal guidance. We provide that.

What Louisiana Defendants Should Do

Dont talk to federal investigators without an attorney present. Exercise your Fifth Amendment right to remain silent. Politely decline to answer questions and contact us immediately. Investigators aren’t trying to help you – they’re building a prosecution case. Every word you say can be used against you.

Dont destroy documents or delete communications. That’s obstruction of justice, which carries separate federal charges and sentencing enhancements. Preserve everything – bank records, tax returns, loan applications, emails, text messages, business documents.

Dont discuss your case with anyone except your attorney. Conversations with friends, family, business partners aren’t privileged and can be subpoenaed. Only communications with your attorney are protected by attorney-client privilege.

Time matters in federal cases. Early legal representation creates more options for favorable outcomes. Pre-indictment representation can prevent charges altogether. Post-indictment representation focuses on minimizing damage and reducing sentences. Either way, you need experienced federal criminal defense attorneys who understand PPP fraud prosecutions.

Contact Spodek Law Group for a consultation about your Louisiana PPP fraud case. Your freedom, your career, your future – they’re all at stake. We know how to defend federal fraud cases, and we’re ready to fight for you.