You’ve been Googling sentences. Looking at statutory maximums. Seeing numbers like 30 years, 100 years, life in prison. Those numbers are meant to terrify you into compliance – and they’re working.
Welcome to Federal Lawyers. Our goal is to show you what prosecutors don’t want you to understand about federal sentencing: the maximum prison sentence for PPP and EIDL fraud isn’t the number that determines how long you’ll actually serve. Nobody gets 100 years for pandemic loan fraud. What actually determines your sentence is a mathematical formula that converts the dollars you took into the months you’ll spend in federal prison. That formula lives in the Federal Sentencing Guidelines, specifically § 2B1.1. And once you understand how it works, you’ll realize the “maximum” was never the point. The minimum based on your loss amount is what you should have been afraid of all along.
That’s the fundamental truth about federal sentencing that most legal websites won’t explain. They’ll list the statutory maximums – 30 years for bank fraud, 30 years for wire fraud, 30 years for false statements. Add them up and you get 90 years. Throw in money laundering and conspiracy and you’re looking at theoretical exposure of 150 years. But here’s what matters: Michael Fullerton, who committed one of the largest PPP fraud schemes prosecuted, got 286 months. That’s about 24 years – not 150. The math between what prosecutors threaten and what judges impose is completely different.
The Number Everyone Fears (And Why It’s Wrong)
Heres the statutory breakdown that scares everyone. Bank fraud under 18 USC §1344 carries a maximum of 30 years imprisonment and a $1 million fine. Wire fraud under 18 USC §1343 carries 20 years – but if the fraud affects a financial institution, it jumps to 30 years. Making false statements to the SBA or a bank under 18 USC §1014 adds another 30 years. Money laundering under 18 USC §1956 adds 20 years per count.
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(212) 300-5196Stack all those together and you’re looking at theoretical exposure exceeding 100 years in federal prison. A single fraudulent PPP application could theoretically result in multiple counts of wire fraud (every email, every electronic transfer), bank fraud, false statements, and money laundering. Prosecutors list all these charges on the indictment specifically because the combined maximum sentence creates psychological pressure.
But here’s what actually happens in court. Judges don’t sentence people to 100 years for PPP fraud. They’re following the Federal Sentencing Guidelines, which calculate your sentence based on loss amount and offense characteristics – not statutory maximums. The statutory maximum is the ceiling. The guidelines calculation is the floor. And the floor is what matters, becuase thats usualy were sentences land.
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Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.
Think about the psychology of this. You’re facing an indictment with 12 counts. The prosecutor tells you theoretically facing 120 years. Then they offer a plea deal: plead guilty to one count of bank fraud, and they’ll recommend 4 years. That offer looks like a gift from heaven – even though 4 years might actualy be above what the guidelines call for. The maximum exists to make the plea offer feel generous. Its leverage, not reality.
You submitted a PPP loan application during COVID and now realize some employee count numbers may have been inaccurate.
Could this be considered fraud?
Inaccuracies in PPP applications can trigger federal fraud charges carrying up to 20 years in prison. However, honest mistakes differ from intentional misrepresentation. Documentation of your good-faith efforts is critical to your defense.
This is general information only. Contact us for advice specific to your situation.
The Real Math: How Dollars Become Months
OK so here’s the formula that actually determines your sentence. Federal Sentencing Guidelines § 2B1.1 governs all fraud and deceit offenses. It starts with a base offense level, then adds levels based on loss amount:
- Loss under $6,500: Base level 6
- $6,500 to $15,000: Add 2 levels
- $15,000 to $40,000: Add 4 levels
- $40,000 to $95,000: Add 6 levels
- $95,000 to $150,000: Add 8 levels
- $150,000 to $250,000: Add 10 levels
- $250,000 to $550,000: Add 12 levels
- $550,000 to $1.5 million: Add 14 levels
- $1.5 million to $3.5 million: Add 16 levels
- $3.5 million to $9.5 million: Add 18 levels
- Over $9.5 million: Add 20+ levels
