South Carolina PPP and EIDL Loan Fraud Lawyers

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience handling federal criminal defense. If federal investigators contacted you about your PPP or EIDL loan, if you received an SBA audit letter, or if you got a grand jury subpoena – you’re facing a federal investigation. South Carolina has seen aggressive prosecution of pandemic loan fraud in Charleston, Columbia, and Greenville.

This article explains PPP and EIDL fraud charges in South Carolina, how federal prosecutors build cases, what penalties you face, and what to do now. We represent clients in South Carolina’s federal district and nationwide.

Federal Pandemic Loan Fraud in South Carolina

The District of South Carolina – covering Charleston, Columbia, Greenville, and surrounding areas – has prosecuted numerous PPP and EIDL 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 during the pandemic. EIDL loans provided economic injury disaster assistance for operating expenses. Both required truthful applications. Lying on either application – about your business, employees, revenue, expenses, or how you spent money – is federal fraud.

Your loan gets flagged when discrepancies appear between your application and other records. 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 applied using businesses that didn’t exist. Maybe you spent loan money on personal expenses instead of business costs. These inconsistencies trigger investigations.

Federal investigators prioritize larger loans but prosecute smaller amounts too. They cross-reference applications with IRS data, state employment records, banking transactions, and business registrations. When numbers don’t match – you get investigated.

Federal Charges in PPP and EIDL Fraud

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 in prison and $1 million in fines.

False statements to the SBA violate 18 U.S.C. § 1014. If you lied about employee counts, payroll expenses, revenue, or eligibility – you’re facing 30 years.

Money laundering charges get added when you moved funds to hide spending or transferred money overseas. That’s 18 U.S.C. § 1956 – up to 20 years.

Conspiracy charges apply when others were involved – accountants, business partners, consultants. If they helped prepare false documents or knew about inflated numbers, prosecutors charge conspiracy to commit fraud. Conspiracy carries the same penalties as the underlying offense.

What Prosecutors Must Prove

Intent is critical. Prosecutors must prove you knowingly made false statements. “Knowingly” means you understood the information was false when you submitted it – not that you understood it was criminal.

You claimed $400,000 in payroll when you actually paid $150,000? You knew that was wrong. You claimed $800,000 in annual revenue when your tax return showed $300,000? You knew that was false. Prosecutors don’t need to prove criminal sophistication – just deliberate lies.

How Investigators Build Cases

They start with your bank accounts. Investigators subpoena every transaction in your business and personal accounts for 2019 through 2021. They analyze how you spent PPP and EIDL funds – looking for personal purchases, luxury items, cash withdrawals, transfers to family.

Next they pull your tax returns. Your 2019 and 2020 returns show actual payroll and revenue. If your applications claimed higher amounts – that’s documentary evidence of fraud.

They interview employees, former employees, vendors, and landlords to verify your business operations. If you claimed 20 employees but investigators find only 8 who actually worked there – that’s fraud.

Forensic accountants review spending patterns. PPP funds were for payroll, rent, utilities. EIDL funds covered working capital, accounts payable, fixed debts. If you bought vehicles, boats, or paid personal credit cards – prosecutors will argue fraudulent intent from the start.

Sentencing in South Carolina

Federal sentencing guidelines base punishment on loss amount. Fraud involving $150,000 to $250,000 significantly increases sentencing. Over $550,000 – you’re looking at years in prison.

Acceptance of responsibility matters enormously. If you cooperate, admit wrongdoing, and accept a plea deal early – judges can reduce sentences by up to 30%. If you go to trial and lose – you get the maximum.

Recent South Carolina sentences show typical outcomes. A Charleston defendant who obtained $500,000 through false applications got 36 months. A Columbia business owner who lied about payroll to get $250,000 received 24 months. A Greenville defendant who submitted fake revenue documents got 18 months.

Restitution is mandatory – you repay every dollar. Fines reach $250,000 for individuals and $500,000 for organizations. Asset forfeiture is common – the government seizes property purchased with fraudulent funds.

What to Do When Investigators Contact You

Don’t talk to federal agents without a lawyer. If FBI or IRS agents show up asking about your PPP or EIDL loan – don’t answer. Don’t try to explain discrepancies. Everything you say becomes evidence. Politely decline to speak and contact a federal defense attorney immediately.

If you receive a grand jury subpoena – prosecutors are presenting evidence to indict you. You need legal representation before producing documents.

Target letters notify you that you’re under investigation. If you get one – prosecutors are considering charges and may be willing to negotiate before indicting.

Why Spodek Law Group Handles These Cases

We’ve represented clients in federal prosecutions since 1976. Todd Spodek’s father founded this firm as a federal criminal defense practice – Todd grew up watching federal trials.

Our team includes former federal prosecutors who worked fraud cases from the government side. They know how prosecutors think, what evidence they need, what weaknesses exist.

We’ve handled high-profile federal cases that got national attention. Todd Spodek represented Anna Delvey in her fraud prosecution – now a Netflix series. We represented the Ghislaine Maxwell juror in his misconduct case.

We handle PPP and EIDL fraud cases in Charleston, Columbia, Greenville, and throughout South Carolina’s federal district. We’re available 24/7 because federal investigations don’t wait.

Our Defense Approach

We investigate before the government finishes. When you hire us during the investigation stage – we can sometimes prevent charges entirely. We submit presentations to prosecutors explaining why evidence doesn’t support fraud charges.

If charges are filed, we challenge every element. Did you make false statements, or rely on professional advice? Did you have fraudulent intent, or misunderstand complex program rules?

We negotiate aggressively. Prosecutors want convictions – they’ll consider deals that reduce charges and recommend lower sentences. We’ve gotten serious fraud charges reduced and secured probation instead of prison.

Some cases should go to trial. When evidence is weak or intent is missing – we try cases.

South Carolina PPP and EIDL loan fraud investigations are serious federal prosecutions. If you’re under investigation or facing charges – call us immediately.