portland ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers, a second-generation firm managed by our lead attorney – with over 50 years combined experience defending federal fraud prosecutions nationwide. If you’re facing PPP or EIDL fraud charges in Portland, you’re dealing with federal prosecutors from the District of Oregon who handle pandemic fraud cases at the U.S. Attorney’s Office in downtown Portland. These prosecutors have charged business owners throughout the metro area – including Beaverton, Gresham, Hillsboro, and Vancouver across the river – with bank fraud, wire fraud, and false statements for allegedly inflating payroll figures, misrepresenting employee counts, using proceeds for unauthorized purposes, or submitting applications through entities prosecutors claim were shells created to multiply loan amounts. What makes Portland cases uniquely challenging is that federal judges here are known for progressive sentencing in some contexts but remain tough on fraud, particularly when they believe defendants exploited pandemic relief programs designed to help struggling businesses and workers during economic crisis.

Federal PPP Fraud Prosecution in Portland

Portland’s federal courthouse at 1000 SW Third Avenue is where most PPP and EIDL fraud cases are tried. The U.S. Attorney’s Office has brought cases ranging from restaurant owners who allegedly inflated employee counts to secure larger loans, to construction contractors who prosecutors claim fabricated payroll records, to retail operators accused of using proceeds for personal expenses rather than business operations. One case that drew local attention involved a Portland business owner charged with obtaining $400,000 across three entities – prosecutors argued the companies were shells with no legitimate operations, while defense claimed they were separately managed businesses with distinct employees and operations. After conviction, the court imposed a 5-year sentence.

EIDL fraud prosecutions in Portland often involve smaller loan amounts but carry serious consequences nonetheless. Prosecutors have charged defendants with obtaining $150,000 advances through applications containing false information about business revenue, employee counts, or operational history. These cases frequently involve business owners who legitimately operated businesses before the pandemic but allegedly exaggerated figures to qualify for larger advances – conduct prosecutors frame as criminal fraud even when defendants argue they made good-faith estimates under ambiguous guidance.

Bank Fraud and Wire Fraud Charges

Bank fraud under 18 U.S.C. § 1344 is the most serious charge in PPP cases, carrying a maximum of 30 years in federal prison. This statute applies whenever you allegedly made false statements to obtain loan funds, and prosecutors use it aggressively in Portland. The statute doesn’t require proof you intended to permanently deprive the bank of money – only that you knowingly made material misrepresentations to obtain funds, even if you planned to use proceeds for legitimate business purposes.

Wire fraud charges under 18 U.S.C. § 1343 get stacked on top when you used electronic communications during the application process: submitting online forms, emailing documents to lenders, receiving wire transfers. Each electronic communication can be charged as a separate count, which is how prosecutors create massive exposure. We’ve seen Portland prosecutors charge 10-15 wire fraud counts for single loan applications, each carrying 20 years maximum, creating theoretical sentences of centuries to pressure defendants into guilty pleas.

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Legal Scenario: What Would You Do?

Scenario

You applied for both a PPP loan and an EIDL loan for your Portland food cart business during the pandemic, but you inflated your employee count and payroll figures to qualify for larger amounts. Now a federal agent from the SBA Office of Inspector General has contacted you requesting documentation for both loans.

Can I be charged separately for both the PPP and EIDL fraud even though they were part of the same effort to keep my business afloat?

Attorney's Answer

Yes, federal prosecutors in the District of Oregon regularly charge PPP and EIDL fraud as separate counts under 18 U.S.C. § 1343 (wire fraud) and 18 U.S.C. § 1014 (false statements to a financial institution), with each count carrying up to 20 and 30 years respectively. The SBA OIG works closely with the U.S. Attorney's Office in Portland to build cases involving multiple pandemic relief programs, and applying for both programs with false information can significantly increase your exposure. Voluntary disclosure and cooperation before an indictment can sometimes lead to more favorable outcomes, including the possibility of a pre-charge resolution. You should not respond to the agent's requests or provide any documents until you have an attorney who can assess the strength of the government's evidence and negotiate on your behalf.

This is general information only. Contact us for advice specific to your situation.

Identity Theft Enhancements

In cases involving use of other people’s information to apply for EIDL loans, prosecutors add aggravated identity theft charges under 18 U.S.C. § 1028A. This carries a mandatory consecutive 2-year sentence that must run after any sentence imposed on underlying fraud charges. Even defendants with no criminal history face significant prison time when identity theft charges are added – the 2-year mandatory minimum can’t be reduced through acceptance of responsibility or other guideline reductions.

Defenses That Work in Portland Federal Court