Washington PPP Loan Fraud Lawyers

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience defending federal criminal cases nationwide. If you’re facing PPP loan fraud charges in Washington state – or you’re under investigation by federal authorities – you need to understand how aggressively prosecutors are pursuing these cases in 2025.

We’re writing this because Washington residents are still being indicted and sentenced for pandemic fraud committed years ago. The U.S. Attorney’s Office for the Eastern District of Washington highlighted several major COVID-19 fraud prosecutions in 2024, with sentences ranging from 18 months to over 16 years in federal prison. These cases aren’t slowing down.

Washington PPP Fraud Prosecutions Hit Hard in 2024

Tyler Keith Andrews got sentenced to more than 16 years in federal prison in December 2024. He participated in a scheme that obtained over $16 million in COVID-19 relief funds – helping co-conspirators get about $13.4 million and obtaining another $4.5 million by submitting false applications for his own companies. His sentence also included three years of supervised release, restitution of over $16.3 million to the Small Business Administration, and forfeiture of more than $4.3 million.

Sixteen years. That’s a sentence you’d expect for violent crimes, not fraud. But that’s where federal sentencing guidelines land when you’re responsible for $16 million in fraud. The guidelines don’t care that it was pandemic loans instead of bank robbery.

William Philip Werschler and his businesses got charged with 23 counts of fraud in October 2024 for fraudulently obtaining approximately $1.5 million in COVID-19 relief funds. He allegedly used the money to buy luxury sports cars, purchase real estate, and pay off personal debt. Twenty-three federal counts. Each wire fraud count carries up to 30 years maximum.

Then there’s Nathan Michael Triano, who got sentenced to 18 months in federal prison in September 2024 for obtaining six COVID-19 relief loans totaling about $140,865 through false and fraudulent applications. Even relatively smaller amounts – under $150,000 – are resulting in federal prison time.

The Eastern District Is Charging Multiple-Defendant Conspiracies

In November 2024, Taylor Jashaun Kendall and Michael Tyriq Allen were charged with a dozen fraud counts as part of a scheme to obtain $300,000 in COVID-19 relief funding for themselves and others. Antonio Crawford submitted false applications in his name and on behalf of others to obtain more than $750,000.

These multi-defendant cases create additional risk. When you’re charged in a conspiracy, you’re responsible for the entire scope of the conspiracy – not just your individual portion. If you helped five other people submit fraudulent PPP applications totaling $1 million, federal prosecutors can hold you accountable for the full million in loss calculation, even if you personally only received $150,000.

This dramatically increases your sentencing exposure under the federal guidelines. Your offense level gets calculated based on total conspiracy loss, and that drives your recommended prison time.

Civil Enforcement Runs Parallel to Criminal Cases

The Western District of Washington continues pursuing civil False Claims Act cases alongside criminal prosecutions. Brands LLC recently agreed to pay $989,438 to resolve allegations the company improperly obtained a Paycheck Protection Program loan from the SBA.

Civil settlements don’t protect you from criminal prosecution. The government can pursue both simultaneously. You settle a civil case for hundreds of thousands in damages, then still face criminal charges for the same conduct. Settlement agreements typically preserve the government’s right to pursue criminal enforcement.

Federal law allows civil penalties of up to $27,894 per false claim as of 2025 – adjusted annually for inflation – plus treble damages. If you submitted three fraudulent PPP applications for $500,000 total, the civil case could seek $1.5 million in triple damages plus $83,682 in civil penalties. That’s before criminal restitution.

What Spending Patterns Trigger Federal Investigation

Federal investigators look at your bank records after you received PPP funds. They’re searching for specific red flags – luxury purchases, real estate transactions, personal debt payoff, transfers to family members, gambling, high-end vehicles.

The Werschler case perfectly illustrates this. Prosecutors alleged he used $1.5 million in PPP funds to buy luxury sports cars and real estate. Those purchases left a paper trail. Bank records show PPP deposits into business accounts, then transfers to personal accounts or direct purchases of assets.

Investigators also compare your claimed payroll expenses against actual payroll records. If you told the lender you had a monthly payroll of $80,000 but bank records show you only paid $30,000, that’s fraud. If you claimed 25 employees but tax records show you only had 8, that’s fraud.

The SBA Office of Inspector General and FBI financial crimes units specialize in forensic accounting. They reconstruct your entire financial picture – business accounts, personal accounts, credit card statements, tax returns, payroll records. They know exactly what they’re looking for.

Federal Sentencing in Washington PPP Cases

Federal judges in Washington’s Eastern and Western Districts use the U.S. Sentencing Guidelines to determine prison time. The guidelines are driven primarily by loss amount and criminal history.

For fraud offenses, the base offense level increases as the loss increases. Fraud involving $150,000 to $250,000 adds 12 levels. Over $250,000 to $550,000 adds 14 levels. Over $550,000 to $1.5 million adds 16 levels. Over $1.5 million to $3.5 million adds 18 levels. The levels keep climbing into the high 20s and low 30s for multi-million dollar fraud.

A first-time offender starts at Criminal History Category I. With an offense level of 18, the guidelines recommend 27-33 months. At level 22, it’s 41-51 months. At level 26, you’re looking at 63-78 months. At level 30, it’s 97-121 months.

Tyler Andrews’ 16-year sentence (about 192 months) suggests his offense level was in the mid-30s – which makes sense given the $16 million loss amount. The guidelines for that loss range, combined with possible sentencing enhancements for being an organizer or leader of the conspiracy, would produce recommended sentences in that range.

Nathan Triano’s 18-month sentence for $140,865 in fraud aligns with guidelines for loss amounts in that range, probably with acceptance of responsibility reductions for pleading guilty.

Acceptance of Responsibility Matters

If you plead guilty early and demonstrate genuine remorse, you can receive a 2-3 point reduction in your offense level. That translates to 6-12 months less prison time in many cases. But you only get this reduction if you plead guilty – defendants who go to trial and lose don’t receive it.

Federal judges also tend to sentence within or above the guidelines range for defendants convicted at trial. The “trial penalty” is real. Prosecutors offer plea deals with recommendations at the low end of the guidelines range. If you reject the deal and lose at trial, the judge might sentence at the high end or even above the range.

Cooperation can reduce your sentence even further. If you provide substantial assistance to prosecutors in charging other members of a conspiracy, the government can file a motion for downward departure. We’ve seen cooperating defendants receive sentences 40-50% below guidelines recommendations.

But cooperation has risks. You’re testifying against co-defendants who might retaliate. You’re admitting to additional crimes as part of your proffer. And if prosecutors don’t think your cooperation was valuable enough, they might not file the substantial assistance motion at all.

Why These Cases Take Years to Prosecute

Most PPP loans were disbursed in 2020 and 2021. Yet Washington state is still filing new criminal cases in late 2024 and 2025. Why the delay?

Federal financial crime investigations take time. The SBA Office of Inspector General reviews thousands of potentially fraudulent loans, prioritizes the largest and most egregious cases, then refers them to FBI and U.S. Attorney’s Offices. Agents subpoena bank records, interview witnesses, execute search warrants, and build cases for grand jury presentation.

Complex fraud cases involving multiple defendants and businesses can take 18-24 months to investigate. Then there’s grand jury proceedings, indictment, arraignment, discovery, motion practice, plea negotiations, and trial or sentencing. The entire process from initial investigation to final sentencing can span three years or more.

The statute of limitations was recently extended from five years to ten years for PPP fraud. That means prosecutors have until 2030 or later to charge fraud committed in 2020. They’re not rushing.

When You’re Under Investigation But Not Yet Charged

Many people first learn they’re under investigation when FBI agents knock on their door with a search warrant. Or they receive a grand jury subpoena demanding documents. Or their bank notifies them that federal investigators subpoenaed their account records.

At this stage, you haven’t been charged yet. You’re a target or subject of an investigation. What you do now can determine whether you get indicted.

Do not speak to federal agents without a lawyer present. Lying to federal agents is a separate crime carrying up to five years in prison – even if you’re not charged with the underlying fraud. Agents will tell you “we just want to hear your side of the story” or “this is your chance to clear things up.” Don’t fall for it. Politely decline to speak without your attorney present.

Do not destroy documents or delete electronic records. Obstruction of justice charges carry serious penalties and make you look guilty. If you receive a subpoena or search warrant, preserve everything.

Do contact a federal defense lawyer immediately. The investigation stage is when we have the most options – voluntary disclosure, cooperation agreements, convincing prosecutors not to file charges. Once you’re indicted, your options narrow.

Why Washington PPP Cases Require Federal Defense Experience

Washington state has talented criminal defense lawyers. But PPP fraud cases are federal prosecutions in the Eastern or Western District of Washington, handled by Assistant U.S. Attorneys who specialize in financial crimes. The investigating agencies are FBI, IRS Criminal Investigation, SBA Office of Inspector General, and sometimes Secret Service.

Your defense needs to match that sophistication. You need lawyers who understand federal sentencing guidelines, who can challenge the government’s loss calculations, who know how to negotiate cooperation agreements, and who’ve successfully defended complex federal fraud cases nationwide.

At Spodek Law Group – we’ve handled federal cases that made national news. Todd Spodek defended Anna Delvey in the fraud case that became a Netflix series. We represented the juror in the Ghislaine Maxwell misconduct case. We’ve defended federal fraud prosecutions involving millions of dollars across the country.

We represent clients nationwide in federal criminal cases. Washington is well within our practice area. We’ll appear in the Eastern or Western District, work with local counsel if needed, and handle your entire defense from investigation through trial or sentencing.

Our digital case management system means you’ll have 24/7 access to your case file, billing, and confidential communications. We’re available around the clock because federal investigations don’t respect business hours.

Our philosophy is simple – we’re loyal only to you, not to maintaining friendly relationships with federal prosecutors. We’ll negotiate when that serves your interests. We’ll fight at trial when that’s the better strategy. Either way, the goal is getting you the best possible outcome.

If you’re under investigation for PPP fraud in Washington state or you’ve already been charged, contact Spodek Law Group immediately. Every day you wait is a day prosecutors are building their case while you’re not building your defense.