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 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.
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(212) 300-5196Federal 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.
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Money laundering charges get added when you moved funds to hide spending. That’s 18 U.S.C. § 1956 – up to 20 years.
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.
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.
