Oregon PPP Loan Fraud Lawyers

Thanks for visiting Spodek Law Group, a second-generation criminal defense firm managed by Todd Spodek – with over 50 years combined experience defending federal fraud cases nationwide. If you’re facing PPP loan fraud charges in Oregon, you’re dealing with federal prosecutors from the District of Oregon who handle pandemic fraud cases with intensity despite the relatively small number of prosecutions compared to larger districts. The U.S. Attorney’s Office covering Portland, Eugene, and Medford has charged business owners throughout the state with bank fraud, wire fraud, and false statements for allegedly inflating payroll figures, misrepresenting employee counts, using proceeds for unauthorized purposes, or submitting multiple applications through related entities. What makes Oregon cases particularly challenging is that federal prosecutors and judges here often take a progressive approach to sentencing in some contexts but remain tough on fraud cases, viewing pandemic loan fraud as exploitation of programs designed to help vulnerable businesses and workers during crisis.

PPP Fraud Enforcement in Oregon

The District of Oregon has pursued PPP fraud cases selectively, focusing resources on higher-dollar prosecutions and cases involving sophisticated schemes rather than every minor misstatement. One Portland case that drew attention involved a business owner who allegedly obtained over $500,000 through applications claiming employees who didn’t exist – prosecutors presented evidence showing the defendant created false payroll records and submitted fabricated tax documents to support loan applications. The court imposed a 4-year sentence followed by supervised release and full restitution.

Oregon prosecutors have also charged cases involving identity theft, where defendants allegedly used stolen personal information to submit multiple EIDL applications. These cases often result in aggravated identity theft charges under 18 U.S.C. § 1028A, which carry mandatory consecutive 2-year sentences that must run after any sentence imposed on underlying fraud charges. Even defendants with no prior criminal history face significant prison time when identity theft charges are added to fraud prosecutions.

Common Federal Charges in Oregon

Bank fraud under 18 U.S.C. § 1344 carries up to 30 years in federal prison and applies whenever you allegedly made false statements to obtain PPP funds. Prosecutors use this statute aggressively, arguing that any material misstatement on loan applications constitutes bank fraud regardless of your intent or whether you used proceeds for legitimate purposes. The statute doesn’t require proof you intended to permanently deprive the bank of money – only that you knowingly made misrepresentations to obtain funds.

Wire fraud charges under 18 U.S.C. § 1343 get added when you used electronic communications: submitting online applications, emailing documents to lenders, receiving wire transfers of loan proceeds. Each electronic communication can be charged as a separate count. We’ve seen Oregon prosecutors charge 8-12 wire fraud counts for single loan applications, creating theoretical exposure of 160-240 years to pressure defendants into guilty pleas rather than trials.

False Statements and Money Laundering

False statements charges under 18 U.S.C. § 1001 criminalize lying to federal agencies and carry 5 years maximum. Prosecutors use this when you allegedly provided false information to SBA even if banks approved loans without detecting problems. Money laundering charges under 18 U.S.C. § 1956 get added when prosecutors claim your spending patterns demonstrate you knew funds were obtained fraudulently – purchasing luxury items, transferring money offshore, or using proceeds for purposes unrelated to business operations that prosecutors frame as evidence of criminal intent.

Building Strong Defenses

The most effective defenses challenge intent and materiality. Prosecutors must prove you knowingly made false statements – not that you made good-faith errors or relied on bad advice from accountants. We build intent defenses by presenting evidence that you consulted professionals before applying, that you relied on their calculations and recommendations, that you made reasonable interpretations of SBA guidance that was ambiguous during rapid program rollout in early 2020.

We present testimony from the accountants and business advisors you consulted, showing they reviewed your materials and advised that your applications were accurate. We present character witnesses who testify about your reputation for honesty and legitimate business operations spanning years. We show that you disclosed information to lenders voluntarily rather than concealing it, demonstrating lack of criminal intent.

Materiality Challenges

Even if statements were false, prosecutors must prove they were material – meaning they influenced lending decisions. If you overstated payroll by $25,000 but would have qualified for the same loan with accurate figures, that undermines the fraud charge. If banks approved your loan despite obvious red flags that should have triggered denial, that suggests your statements weren’t material. We hire forensic accountants who analyze applications and testify about whether alleged misstatements actually affected loan amounts or eligibility determinations.

Negotiating with Oregon Federal Prosecutors

The U.S. Attorney’s Office in Oregon handles a smaller PPP fraud caseload than urban districts, which means prosecutors have time to thoroughly evaluate cases but also discretion to resolve cases reasonably when presented with strong mitigation. We’ve successfully negotiated reduced charges by presenting evidence showing: defendants made good-faith errors, relied on professional advice, legitimately believed they were eligible, spent substantial portions of proceeds on legitimate business expenses.

Pleading to false statements under § 1001 instead of bank fraud reduces maximum exposure from 30 years to 5 years, dramatically affecting guideline calculations. We also negotiate over loss amounts, which determine guideline ranges. Government claims $200,000 loss, we present evidence showing $80,000 was spent on payroll and rent – reducing actual loss to $120,000 and lowering offense levels by 2-4 points, which translates to months or years less incarceration.

Sentencing in Oregon Federal Court

Federal judges in Oregon are known for carefully considering individual circumstances and often imposing below-guideline sentences when presented with compelling mitigation. However, they take fraud cases seriously, particularly when they involve exploitation of pandemic relief programs. Successful sentencing requires presenting evidence beyond just asking for leniency: demonstrating lack of criminal history, strong family and community ties, acceptance of responsibility, rehabilitation efforts, charitable work, and the extraordinary economic pressures that created desperation during the pandemic.

We present letters from community members, employers, family, and religious leaders who vouch for your character. We hire experts who testify about economic conditions in your industry during 2020, showing that business owners faced unprecedented uncertainty and made decisions under extreme pressure without criminal intent. We argue for alternatives to incarceration – probation, home confinement, community service – emphasizing that restitution and supervised release accomplish sentencing goals without destroying families and businesses.

Pre-Indictment Strategies

If you become aware of an investigation early – because investigators contacted your bank, interviewed employees, or agents approached you for voluntary interviews – that’s the critical moment to hire counsel. We’ve successfully negotiated declinations by presenting prosecutors with evidence showing: you made good-faith errors, you relied on professional advice, ambiguous SBA guidance made it reasonable to interpret eligibility differently, you’ve already repaid questionable amounts, your business was and remains legitimate.

Federal prosecutors have discretion whether to charge cases. When we intervene early with compelling evidence contradicting criminal intent or demonstrating lack of materiality, we sometimes persuade prosecutors that federal prosecution isn’t warranted. Even when we can’t prevent charges entirely, early intervention often results in more favorable charging decisions – fewer counts, lower loss amounts, reduced charges.

What Spodek Law Group Does

We defend PPP fraud cases in federal court throughout Oregon and nationwide. We intervene during investigations before charges are filed, presenting evidence to prosecutors that sometimes leads to declinations. After indictment, we file motions challenging the legal sufficiency of charges, arguing that alleged conduct doesn’t meet fraud elements under federal law. We move to suppress evidence obtained through improper searches or overly broad subpoenas.

We conduct independent investigations, interviewing witnesses prosecutors ignored and hiring expert witnesses – forensic accountants, industry specialists – who testify about why your conduct was consistent with legitimate business practices. At trial, we cross-examine cooperating witnesses about their criminal histories and motivations to fabricate. We present defenses focused on intent, materiality, and good-faith reliance on ambiguous guidance during unprecedented crisis.

At sentencing, we fight for below-guideline sentences by presenting compelling mitigation that humanizes you to judges who otherwise see only financial crime statistics. We’ve secured probationary sentences for defendants facing guideline ranges calling for years in prison by demonstrating extraordinary circumstances and presenting powerful evidence of character and rehabilitation.

At Spodek Law Group, Todd Spodek has defended high-profile cases others thought unwinnable – including the client whose story became a Netflix series. When you’re facing years in federal prison for PPP fraud charges in Oregon, aggressive defense from day one determines the outcome. We’re available 24/7 at our offices throughout NYC and Long Island. Reach out now – early intervention makes enormous difference in federal fraud cases.