Welcome to Federal Lawyers. 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.
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(212) 300-5196The 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.
Todd Spodek
Lead Attorney & Founder
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.
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.
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.
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.
our lead attorney 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.
