Alabama PPP Loan Fraud Lawyers
April 2024: U.S. District Court Judge L. Scott Coogler sentences Kenzarian Lemark Harris, 38, to 36 months in federal prison for wire fraud involving a $20,833 PPP loan. Same courthouse, same judge, same charges—Reginald Dewayne Rhodes, Jr., 26, receives 18 months for an $11,770 PPP loan. Harris obtained $9,063 more in fraudulent funds; Rhodes received half the prison time. Both men from Tuscaloosa submitted false PPP applications claiming nonexistent businesses. The sentencing disparity wasn’t about the fraud amount. Rhodes accepted responsibility. Harris didn’t. That differential—acceptance versus resistance—determines whether you serve 18 months or 36 months in Alabama’s Northern District federal court.
Federal Lawyers defends PPP fraud cases in Alabama’s three federal districts: Northern (Birmingham), Middle (Montgomery), and Southern (Mobile). our lead attorney manages this second-generation firm with over 40 years of combined experience in federal fraud defense. When Alabama federal prosecutors charge you with 30-year maximum statutes for pandemic-era loan applications, constitutional defenses aren’t optional.
Need Help With Your Case?
Don't face criminal charges alone. Our experienced defense attorneys are ready to fight for your rights and freedom.
- 100% Confidential
- Response Within 1 Hour
- No Obligation Consultation
Or call us directly:
(212) 300-5196What Defenses Actually Work in Alabama Federal Court
Good faith reliance on professional advice. If your Alabama accountant calculated payroll costs using a methodology that included owner compensation categories the SBA later clarified were ineligible—that’s not fraud. That’s a paperwork dispute. Federal prosecutors in Birmingham, Montgomery, or Mobile must prove you KNEW your application contained false statements. Reliance on a CPA’s calculations negates criminal intent. Judge Coogler’s 50% sentencing reduction for Rhodes demonstrates Alabama federal judges recognize this defense when defendants demonstrate actual reliance on professional guidance during the chaos of April 2020 lockdowns.
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.
You applied for a PPP loan for your small business in Alabama during the pandemic, but you exaggerated your payroll numbers to qualify for a larger amount. Now you've received a target letter from the U.S. Attorney's Office in the Northern District of Alabama indicating you're under investigation for PPP loan fraud.
Could I really face federal prison time over a PPP loan that was only around $20,000?
Absolutely—as recent cases in Judge Coogler's courtroom demonstrate, defendants have received 18 to 36 months in federal prison for fraudulent PPP loans as small as $11,770. PPP fraud is prosecuted under federal wire fraud statutes (18 U.S.C. § 1343), which carry a maximum sentence of 20 years per count, regardless of the dollar amount involved. Sentencing depends on factors like the amount of loss, whether you voluntarily repaid funds, and your criminal history, which is why two defendants with similar charges in the same Alabama courthouse received vastly different sentences. An experienced federal defense attorney can negotiate with prosecutors, potentially securing reduced charges or arguing for downward departures at sentencing before it's too late.
This is general information only. Contact us for advice specific to your situation.
Ambiguous SBA guidance. The CARES Act passed March 27, 2020. The SBA issued the first PPP Interim Final Rule on April 2, 2020—six days later. That rule left basic eligibility questions unanswered: How do independent contractors calculate payroll? Can sole proprietors include owner compensation? What documentation proves business operations? The SBA revised these answers through 85 separate guidance documents between April and August 2020, contradicting prior interpretations. When prosecutors in Alabama’s Middle District charged Michelle Denise McIntyre and obtained 114 months in prison for Restaurant Revitalization Fund fraud in April 2025, they relied on guidance that didn’t exist when she submitted her application. That temporal disconnect creates constitutional problems for prosecutors.
