Texas 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 in federal criminal defense. If you’re facing a PPP or EIDL fraud investigation in Texas – whether in Houston, Dallas, Austin, San Antonio, or elsewhere – you need experienced federal defense counsel immediately. Texas has seen more pandemic loan fraud prosecutions than almost any other state.

This article covers PPP and EIDL fraud charges in Texas, how federal investigators build cases, what penalties you face, and why you need a lawyer now. We represent clients in Texas’s four federal districts and nationwide.

Texas’s PPP and EIDL Fraud Landscape

Texas has four federal districts – Northern (Dallas/Fort Worth), Southern (Houston), Eastern (Tyler/Beaumont), and Western (San Antonio/Austin). All four have aggressively prosecuted pandemic loan fraud since 2020. The SBA Office of Inspector General identified billions in potentially fraudulent loans across Texas – the state’s large small business population made it a hotspot for fraud investigations.

PPP loans covered payroll costs. EIDL loans provided economic injury disaster assistance. Both required truthful applications. Lying on either – about your business, employees, revenue, expenses, or spending – is federal fraud.

Federal investigators in Texas prioritize large loans but prosecute smaller amounts too. They cross-reference your applications with IRS tax returns, state employment records, banking data, and business registrations. Discrepancies trigger investigations. Maybe you inflated payroll on your PPP application. Maybe you claimed higher revenue on your EIDL application than you reported to the IRS. Maybe you spent loan money on personal expenses instead of business costs.

Federal Charges You’re Facing

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.

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 or knew about inflated numbers, prosecutors charge conspiracy. Conspiracy carries the same penalties as the underlying fraud.

Intent Requirements

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 illegal.

You claimed $600,000 in payroll when you paid $250,000? You knew that was wrong. You claimed $1.2 million in revenue when your tax return showed $500,000? You knew that was false. Prosecutors don’t need to prove sophistication – just deliberate lies.

How Federal Investigations Work in Texas

Investigators start with your bank accounts. They 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.

They interview employees, former employees, vendors, landlords – anyone who can verify your business operations. If you claimed 30 employees but investigators find only 12 – that’s fraud.

Forensic accountants review spending patterns. PPP funds were for payroll, rent, utilities. EIDL funds covered working capital and fixed debts. If you bought vehicles, boats, jewelry, or vacations – prosecutors will argue fraudulent intent.

Sentencing in Texas Federal Courts

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. 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 Texas sentences show the pattern. A Houston defendant who obtained $900,000 through false applications got 60 months. A Dallas business owner who lied about payroll to get $400,000 received 36 months. An Austin defendant who submitted fake documents got 24 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 Contacted

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. Everything you say becomes evidence. Politely decline 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 negotiate before indicting.

Why We Handle Texas PPP and EIDL Cases

Spodek Law Group has represented clients in federal prosecutions since 1976. Todd Spodek’s father founded this firm – Todd grew up in federal courtrooms.

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

We’ve handled high-profile federal cases. 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 Houston, Dallas, Austin, San Antonio, and throughout Texas’s federal districts. We’re available 24/7.

Our Defense Strategy

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 program rules?

We negotiate aggressively. Prosecutors want convictions – they’ll consider deals that reduce charges and recommend lower sentences. We’ve gotten 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.

Texas PPP and EIDL loan fraud investigations are serious federal prosecutions. If you’re under investigation or facing charges in Houston, Dallas, Austin, San Antonio, or anywhere in Texas – call us immediately.