PPP Fraud Fines and Restitution How Much Will You Owe

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 convicted of PPP fraud, prison time is just part of the punishment. You’ll also owe massive amounts in restitution and fines – and these financial obligations don’t disappear when you finish your sentence.

Criminal Restitution Is Mandatory

Federal courts must order restitution in fraud cases under the Mandatory Victims Restitution Act. The judge has no discretion – if you’re convicted, you’re paying back what you stole.

In June 2025, Richard Nieto was sentenced to 46 months in prison for PPP fraud involving $913,000 in loans. The court ordered him to pay $962,438 in restitution – more than the loan amount because it included interest and investigation costs.

Renetta Golden-Larimore got 51 months in prison and $908,278 in restitution for her role in obtaining over $900,000 in fraudulent PPP loans. She also had to forfeit $75,833 – money the government traced directly to the fraud.

In August 2025, a Nevada man was ordered to pay $11,793,064 in restitution for fraudulently obtaining more than $11 million in PPP loans. He laundered the money through real estate, gambling and luxury purchases. The court also ordered forfeiture of $11,231,186, two vehicles and five properties.

Restitution isn’t dischargeable in bankruptcy. It survives your death – your estate owes it. The government can garnish your wages, seize your tax refunds, take your Social Security benefits and place liens on your property until it’s paid in full.

How Courts Calculate Restitution Amounts

Restitution typically equals the full loan amount plus accrued interest. Courts also include administrative costs, investigation expenses and any consequential damages suffered by victims.

If you obtained $50,000 in fraudulent PPP loans three years ago and the government spent $10,000 investigating and prosecuting you, the restitution order could be $60,000 plus interest. The interest calculation depends on when you received the funds and when you’re sentenced.

Some defendants argue they should only owe restitution for funds they actually spent, not the full loan amount. Courts reject this argument. Once you obtained money through fraud, you owe full restitution regardless of whether you still have the money or spent it all.

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Legal Scenario: What Would You Do?

Scenario

You received a PPP loan of $150,000 for your small business during the pandemic, but you used a significant portion of the funds for personal expenses including a car payment and home renovations. Now the SBA has referred your case to the DOJ, and you've received a target letter indicating you're under investigation for PPP fraud.

If I'm convicted, how much will I actually owe in fines and restitution on top of any prison sentence?

Attorney's Answer

Under 18 U.S.C. § 1343 (wire fraud), you face fines up to $250,000 per count, and under the Mandatory Victims Restitution Act (18 U.S.C. § 3663A), the court is required to order full restitution to the SBA for the entire fraudulently obtained loan amount — meaning you would owe back every dollar of that $150,000 regardless of how much you actually misused. These financial obligations survive bankruptcy and can be collected through wage garnishment, asset seizure, and tax refund intercepts for decades after your sentence ends. An experienced federal defense attorney may be able to negotiate a plea that reduces the restitution amount by demonstrating that a portion of the funds were legitimately used for qualifying business expenses, potentially saving you tens of thousands of dollars.

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

Joint and Several Liability in Conspiracy Cases

If you participated in a conspiracy involving multiple defendants, you can be held jointly and severally liable for the entire loss – not just your portion. Say three people conspired to obtain $500,000 in fraudulent PPP loans, and you personally received $50,000. The court can order you to pay the full $500,000 in restitution.

The government can collect the full amount from any defendant in the conspiracy who has assets. If the other co-defendants are broke and you have money, the government will collect from you first. You then have to sue your co-conspirators for contribution – good luck with that.

Criminal Fines Add to the Financial Burden