Maine 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 Maine, you’re dealing with federal prosecutors in the District of Maine who take pandemic fraud seriously.

Maine businesses received substantial PPP funding during 2020 and 2021. While Maine’s fraud prosecutions haven’t been as numerous as larger states, federal prosecutors in Portland and Bangor have pursued cases aggressively when fraud is identified. These prosecutions carry significant prison time.

PPP Fraud Prosecutions in Maine

The District of Maine covers the entire state, with divisions in Portland and Bangor. Federal prosecutors here work with FBI agents and the SBA Office of Inspector General to investigate PPP fraud schemes.

A Portland business owner applies for PPP loans claiming 30 employees and $600,000 in annual payroll. Reality? He had 9 employees and $170,000 in actual payroll costs. Inflated the numbers to get a larger loan. Used funds for boat purchases, home renovations, personal investments. Federal investigators compared his application against Maine Department of Labor records and IRS filings – discrepancies everywhere. He’s now facing wire fraud and false statements charges.

Or consider a case from southern Maine. Someone claims to operate a consulting business with $500,000 in revenue. Applies for a PPP loan, receives $150,000. The business barely existed – minimal operations, fabricated revenue, no substantial client base. SBA auditors identify the fraud during compliance reviews. Federal charges follow months later.

How Maine Investigations Work

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

Once flagged, FBI agents investigate. They subpoena bank records showing every transaction. They pull tax returns. They review Maine Secretary of State business registrations. They interview employees, accountants, anyone connected to your business. They compare your PPP application against IRS records, state unemployment filings, anything showing actual business operations.

Some cases start with tips from whistleblowers – employees who know you inflated numbers, business partners who report fraud, bank officers who file Suspicious Activity Reports. Once you’re under investigation, federal agents build their case methodically.

Federal Charges in Maine PPP Cases

Wire fraud under 18 U.S.C. § 1343 is the primary charge. 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. We’ve seen indictments with 15+ wire fraud counts for a single loan application. Each wire fraud count carries up to 20 years in federal prison. Bank fraud under 18 U.S.C. § 1344 adds up to 30 years per count when the fraud involved a financial institution. 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 you moved funds around. Transferred PPP money from business to personal accounts? That’s laundering. Made large purchases? Laundering. Each transaction can be charged separately, adding 20 years per count.

Maine Federal Sentencing

Federal judges in Maine 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. These enhancements translate to years in prison. A first-time offender with no criminal history facing a $400,000 fraud is looking at roughly 30-37 months under the guidelines – over two years minimum.

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

Defending PPP Fraud Cases in Maine

Every case has defensible angles. 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. The SBA changed guidance multiple times during 2020. Lenders gave inconsistent advice. Accountants misunderstood 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 $500,000 in loss, but maybe you used $200,000 legitimately for payroll and rent. 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 without probable cause? Did they question you without Miranda warnings? Did they coerce statements? We file suppression motions, and successful motions can cripple the government’s case.

Pre-Indictment Representation in Maine

The best time to hire federal criminal defense lawyers is before you’re indicted. During the investigation phase, we can communicate with federal prosecutors, present evidence of innocence, negotiate resolutions that prevent charges.

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

Cooperation Options

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

Cooperation has risks. You’re testifying against others, which creates concerns. You need attorneys who understand the process and protect your interests.

Why Spodek Law Group for Maine Cases

We handle complex federal cases nationwide. Todd Spodek represented Anna Delvey in the fraud case that became a Netflix series. We handled juror misconduct in the Ghislaine Maxwell trial. We secured a 6-month sentence for a client facing decades 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 sentencing strategies. That insider knowledge shapes our defense approach.

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

What Maine Defendants Should Do

Dont talk to federal investigators without an attorney. Exercise your Fifth Amendment right to remain silent. Politely decline to answer questions and contact us immediately. Investigators are building a prosecution case – anything you say will be used against you.

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

Dont discuss your case with anyone except your attorney. Conversations with friends, family, business partners can be subpoenaed. Only attorney-client communications are privileged.

Time matters in federal cases. Early legal representation creates more options. Pre-indictment representation can prevent charges. Post-indictment representation focuses on minimizing damage and reducing sentences.

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