Thanks for visiting Federal Lawyers – a second-generation law firm managed by our lead attorney, with over 40 years of combined experience in federal criminal defense. If you’re facing a PPP or EIDL fraud investigation in Connecticut – you need experienced federal defense counsel immediately. The District of Connecticut has aggressively prosecuted pandemic loan fraud cases across Hartford, New Haven, Bridgeport, and Stamford.
This article explains PPP and EIDL fraud charges in Connecticut, how federal investigators build cases, what penalties you face, and what to do now. We represent clients in Connecticut’s federal district and nationwide.
PPP and EIDL Fraud in Connecticut
The District of Connecticut – covering the entire state with courthouses in Hartford, New Haven, and Bridgeport – has prosecuted numerous pandemic loan fraud cases since 2020. The SBA Office of Inspector General identified hundreds of millions in potentially fraudulent loans across the state. Federal investigators work with the FBI, IRS Criminal Investigation, and SBA fraud units.
PPP loans covered payroll costs. EIDL loans provided economic injury disaster assistance. Both required truthful applications. Lying on either – about your business, employees, revenue, or spending – is federal fraud.
Your loan gets flagged when discrepancies appear. Maybe your PPP payroll numbers don’t match your tax returns. Maybe your EIDL revenue claims exceed what you reported to the IRS. Maybe you spent loan money on personal expenses instead of business costs.
Federal investigators cross-reference applications with IRS data, Connecticut state employment records, banking transactions, and business registrations. When numbers don’t match – you get investigated.
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(212) 300-5196Federal Charges in Connecticut
Wire fraud is standard. Submitting electronic loan applications uses interstate communications – that’s 18 U.S.C. § 1343, carrying up to 20 years in federal prison.
Bank fraud applies when you lied to financial institutions. That’s 18 U.S.C. § 1344 – maximum 30 years and $1 million in fines.
False statements to the SBA violate 18 U.S.C. § 1014. If you lied about employee counts, payroll, revenue, or eligibility – you’re facing 30 years.
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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 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.
Money laundering charges get added when you moved funds to hide spending. That’s 18 U.S.C. § 1956 – up to 20 years.
Conspiracy charges apply when others were involved. If accountants, partners, or consultants helped prepare false documents, prosecutors charge conspiracy. Conspiracy carries the same penalties as the underlying fraud.
