Mecklenburg County PPP Loan Fraud Lawyers

Mecklenburg County PPP Loan Fraud Lawyers

Welcome to Spodek Law Group. We handle federal PPP loan fraud cases across North Carolina, including Mecklenburg County and the Western District of North Carolina. Our goal is to protect your rights, your freedom, and your future when federal prosecutors come calling about pandemic relief funds you recieved years ago.

If you took out a PPP loan in 2020 and thought you were safe by now, your wrong. The bank fraud statute under 18 U.S.C. 1344 extends through 2030. Federal prosecutors are activley filing new charges in 2025 for loans obtained five years ago. This isnt old news. This is your reality right now.

The Western District of North Carolina has become one of the most aggressive federal districts in the country for PPP fraud prosecutions. Charlotte federal judges are handing down sentences that should terrify anyone who cut corners on their application. The pandemic is over. The sympathy is completley gone. Even elected officials are getting indicted.

The Charlotte Federal Courthouse Reality

Heres the thing about Mecklenburg County PPP fraud cases that nobody tells you. The Western District of North Carolina handles these prosecutions with absolutley zero mercy. And the cases coming out of Charlotte right now are shocking.

In May 2025, Charlotte City Council member Tiawana Brown was indicted for fraud related to pandemic-era relief funds. A sitting city council member. Someone elected to represent the people of District 3 is now facing federal charges for PPP fraud. She and her daughters allegedly filed false applications and fraudulent tax forms, recieving at least $124,165 in PPP loans.

Let that sink in for a second. Heres the paradox that makes this case so remarkable. Tiawana Brown was the first formerly incarcerated person ever elected to Charlotte City Council. She won her seat in 2023. Now, two years later, shes facing federal indictment. From prison to politics and potentialy back to prison. The cycle is almost unbelievable.

What did she spend the PPP money on? This is were it gets absurd. She spent it on Louis Vuitton merchandise. She spent $15,000 on a birthday party that included a balloon arch, a rose wall, a rented throne, and a horse-drawn carriage. Thats were your pandemic relief money went. A fifteen thousand dollar birthday party with a throne.

And heres the truly stunning part. Brown says she wont resign from city council. She plans to run for reelection while under federal indictment. The denial is almost impossible to comprehend. But the federal government dosent care about her political plans. They care about the evidence. They care about the documents. They care about the bank records showing were that money actualy went. A throne and a horse-drawn carriage. The government has receipts for all of it.

How They Actually Catch You

OK so heres something people dont realize about PPP fraud investigations. The government isnt randomly auditing loans. Theyre using data analytics, cross-referencing tax records, and following social media posts. Theyve been building these cases for years. Methodicaly. Patiently. Waiting for the right moment to move.

Glynn Paul Hubbard Jr. was indicted in July 2023 for allegedly obtaining more than $1.2 million in fraudulent PPP and EIDL loans. Heres how he got caught. He was openly promoting himself on social media as a “PPP loan consultant.” He advertised his services through personal referrals and social media posts. The government was watching.

Think about that for a moment. If you posted anything on Facebook, Instagram, or anywhere else about helping people get PPP loans, the government probly has screenshots. If you bragged about getting a big loan, they know. If you showed off purchases that dont match your reported income, thats evidence.

The SBA Office of Inspector General has been activley working with IRS Criminal Investigation and the FBI on these cases. They have access to everything. Banking records. Tax filings. Payroll data. Social media accounts. When your PPP application claims you had 20 employees making significant wages, and your 2019 tax return shows a completley different picture, that discrepency is automaticaly flagged.

The Consultant Scheme

In March 2025, Jeannetta Blackmon from Charlotte was sentenced to 30 months in federal prison for orchestrating a $1.5 million fraudulent disaster relief loan scheme. Thats two and a half years behind bars. She was also ordered to pay $1,549,737 in restitution.

Heres the thing that makes the Blackmon case especialy important. She had two revenue streams from fraud. First, she obtained fraudulent PPP and EIDL loans for herself. Second, she charged customers fees to prepare and submit fraudulent applications on their behalf. She collected over $300,000 in consultant fees from people who paid her to help them commit fraud.

If you used a consultant or preparer to file your PPP application, and that person is now under investigation, you are probably next. The government dosent just prosecute the consultant. They prosecute the clients too. Every application Blackmon filed is now evidence. Every client who paid her is a potential defendant.

This is the uncomfortable truth that most people dont want to hear. When your consultant gets caught, they often cooperate with the government. They hand over client lists, emails, and payment records. The government uses that information to identify everyone who participated in the scheme. If you thought using a consultant gave you cover, your completley wrong. Your actualy in a worse position because now theres a witness who can testify against you. And that witness has every incentive to tell prosecutors exactley what you said when you hired them.

Real Charlotte Sentences

Lets talk about what actually happens when you get caught. Evan Agustin Perez, 35 years old from Charlotte, was sentenced to 24 months in federal prison in February 2024 for obtaining approximately $720,000 in fraudulent PPP and EIDL loans. He was also ordered to pay $720,079.82 in restitution.

Two years in prison for a 35-year-old. Thats the reality of federal sentancing in Charlotte. And the restitution order means hes going to be paying that money back for decades. Even after he gets out of prison, the government will garnish his wages, seize his tax refunds, and take any assets he accumulates.

Perez ran the scheme from April 2020 to September 2021. He used multiple businesses: Augies Wish Foundation, EMP Haircare LLC, Touch of Precision School of Barbering Inc., and Roads to Success Early Learning Center LLC. Four different companies. Multiple fraudulent applications. The government built a case showing systematic fraud over more than a year.

Dontae Antonio Murphy from Charlotte got 12 months for his role in a national COVID-19 fraud scheme involving a purported janitorial and cleaning services company. Thats part of a larger case were over 20 defendants have been sentenced to federal prison. When you participate in a scheme with multiple people, everyone goes down together.

Todd Spodek and our team have seen this pattern repeatedly across the country. People who used multiple business entities, who worked with consultants, or who filed applications over extended periods face significantley harsher prosecution then those who made mistakes on a single application. The government treats systemic fraud differently then isolated errors.

The Timeline Nobody Explains

Heres how these investigations actualy work in practice. The SBA Office of Inspector General identifies suspicious applications through computer algorithms and data cross-referencing. Maybe your loan amount dosent match your reported income. Maybe your business address is a residential home. Maybe you claimed multiple employees but your tax records show you as a sole proprietor.

They refer it to the Department of Justice. An Assistant U.S. Attorney in Charlotte reviews the file. If theres enough evidence, they open a grand jury investigation. You wont know about any of this. Grand jury proceedings are completley secret.

The first sign your in trouble? FBI agents show up at your door. Or your bank sends you a letter saying your accounts been frozen. Or you get a target letter from the U.S. Attorneys Office. By then, the investigation has been running for months. Maybe years. The government has already interviewed witnesses, subpoenaed bank records, and analyzed your financial history. They know more about your finances then you probly remember yourself. They have spreadsheets. They have timelines. They have everything they need to prove the case before you even know theres an investigation.

Tiawana Brown was indicted in May 2025 for loans she got in 2020. Five years later. The government is extremley patient when it comes to financial crimes. They build cases methodicaly and carefully. They wait until they have everything they need before they move.

What Makes the Western District Different

The Western District of North Carolina has prosecuted 35+ defendants for CARES Act fraud. 28 individuals have been prosecuted specificaly for PPP and EIDL fraud. Charlotte has a dedicated financial crimes unit that handles these cases exclusivley. These prosecutors have seen hundreds of applications. They know every excuse. Theyve heard every explanation.

When Blackmon was collecting consultant fees from clients, prosecutors knew exactly how to build the case. They followed the money. They traced payments. They identified everyone who used her services. The entire network fell apart because the paper trail was irrefutable.

Spodek Law Group has handled PPP fraud cases in multiple federal districts. What we see in Western North Carolina is a court system thats had enough. The pandemic is over. Judges are tired of sob stories. They want to send a message that will deter others from even thinking about filing false applications.

The Cooperation Question

Heres were it gets complicated. When multiple people are involved in fraud, the government uses that leverage. The first person to cooperate gets the best deal. Everyone else gets hammered.

This happens constantley. Co-defendants who cooperate early get reduced sentences. Those who fight and lose get the maximum. But heres the trap – you cant cooperate your way out of a case if you dont have information the government actualy wants.

If your a small fish who got caught up in someone elses scheme – like one of Blackmons clients – cooperation might be your best option. If your the one who organized everything, cooperation might not save you. Blackmon ran the whole operation. Even if she wanted to cooperate, who would she give up? The government already had her client list.

The government wants people higher up the chain. They want information about other schemes they dont know about. They want testimony that will help convict others. If you cant provide that, your cooperation has limited value.

The Evidence Problem

Think the government needs your confession? They dont. Every PPP application was submitted electronicaly. Every bank transfer was recorded. Your tax returns from 2019 are already in IRS databases. If you claimed your business had 30 employees making significant wages but your 2019 Schedule C shows minimal revenue, thats a document. Thats evidence that proves the lie.

They dont need you to admit anything. They just need the paper trail. And that trail has been sitting in federal databases for five years, waiting for someone to look at it closley.

At Spodek Law Group, weve successfuly defended clients by attacking the governments evidence – showing that discrepancys had innocent explanations, that clients misunderstood the program requirements, that there was no intent to defraud. But that defense only works if you havent already made statements to federal agents that contradict your position. The moment you talk to the FBI without a lawyer, you create the evidence they need to convict you. This happens constantley. People think they can explain there way out of trouble. They cant. Every word you say becomes part of the governments case against you. And once those words are spoken, theres no taking them back.

Sentencing Realities in Western North Carolina

Lets talk numbers. The Western District of North Carolina follows these general sentancing patterns:

– Small loans ($10,000 – $50,000): Probation to 12 months
– Medium loans ($50,000 – $250,000): 18 to 36 months
– Large loans (over $250,000): 36 to 120+ months

But these are just starting points. Enhancements can add years to your sentence. If you used sophistocated means – fake documents, multiple applications, consultant fees – thats an enhancement. If you obstructed justice – lied to agents, destroyed documents – thats another enhancement. If you were an organizer or leader of a scheme involving others – thats even more time added.

Blackmon got 30 months for $1.5 million in fraud. Perez got 24 months for $720,000. Murphy got 12 months for his role in a national scheme. The pattern is clear. Federal prison time is the norm, not the exception.

The acceptance of responsibility reduction – three levels off your sentence – only applies if you plead guilty early. If you make the government prepare for trial and then plead guilty at the last minute, you dont get the full reduction. If you go to trial and lose, you get nothing.

What To Do If Your Under Investigation

First, stop talking. Dont call the bank to ask about your loan status. Dont email your accountant asking about the PPP application. Dont text your business partner about “that PPP thing we did.” Dont post anything on social media. Everything is discoverable in federal court.

Second, call a federal criminal defense attorney immediatly. Not a local criminal lawyer who handles DWIs and state charges. Not your business attorney who helped you file the application. Someone who has actualy defended PPP fraud cases in federal court and understands how these prosecutions work. Someone whos been through this before and knows what your facing.

Third, preserve documents but dont alter them. Deleting emails or shredding paperwork is obstruction of justice – a seperate federal crime that can add years to your sentence even if the underlying PPP fraud charge dosent stick.

At Spodek Law Group, our first step is always understanding were you stand. Are you a target, a subject, or a witness? Has a grand jury been convened? What evidence does the government likely have? Only after answering these questions can we develop a defense strategy that makes sense for your specific situation.

The Proactive Approach

Some clients come to us before any government contact. Maybe they realized their PPP application had errors after the fact. Maybe they used a preparer who they now suspect was fraudulent. Maybe they got a legitimate loan but spent it on unauthorized expenses instead of payroll.

In these situations, voluntary disclosure might be an option. Coming forward before your caught demonstates good faith to prosecutors. It dosent eliminate criminal exposure, but it can significantley reduce the consequences. Prosecutors look more favorably on someone who self-reports then someone who had to be investigated for years.

This is especialy important if you used a consultant like Blackmon. If your preparer is already under investigation or has been charged, the government probly already has your name. Your on a list somewhere. Coming forward proactivley gives you more options then waiting for the knock on your door.

Why Federal Experience Matters

Heres something most people dont understand about federal court. Its completley different from state court in almost every way. The rules are different. The prosecutors are different. The judges are appointed for life and have enormous discretion in sentencing.

Todd Spodek has handled federal cases across multiple districts throughout the country. We understand how to navigate the Western District of North Carolina specificaly – the local rules, the judicial preferences, the prosecutor tendancies. This matters more then you might think. A defense strategy that works in New York might fail completley in Charlotte.

When you call Spodek Law Group at 212-300-5196, your getting attorneys who have actualy stood in federal courtrooms defending clients against PPP fraud charges. Weve seen what works and what dosent work in these cases. We know which arguments resonate with judges and which ones fall flat.

The Clock Is Ticking

Remember Tiawana Brown, the Charlotte City Council member? Her indictment came in 2025 for loans she got in 2020. Five years later. The government is extremley patient when it comes to financial crimes. They build cases methodicaly and carefully. They wait until they have everything they need before they move.

If you got a PPP loan in 2020 and something wasnt right about it, youve been living with this hanging over you for five years now. Maybe nothing will happen. Or maybe an FBI agent shows up tommorrow morning.

The difference between those outcomes often comes down to what you do today. Waiting until your arrested is the worst possible strategy. By then, the government has already decided your guilty. Theyve already presented evidence to a grand jury. Theyve already gotten an indictment. Your options are dramaticaly limited.

Call us now. Lets figure out were you stand before the government does it for you. The window is closing. Every day you wait is another day the government has to build there case. Dont let them finish before you even start fighting back.