What Happens When the SBA Office of Inspector General Contacts You?

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience in federal criminal defense. If the SBA Office of Inspector General has contacted you about your PPP or EIDL loan, you’re facing a serious investigation that could lead to federal criminal charges, prison time, and financial ruin. The OIG doesn’t contact borrowers for routine matters – they contact you when they suspect fraud.

This article explains what the SBA OIG is, why they’re investigating you, and what you need to do immediately to protect yourself.

What the SBA Office of Inspector General Does

The SBA OIG is the watchdog agency that investigates fraud, waste, and abuse in SBA programs. They have special agents with law enforcement authority who investigate criminal activity, and they work closely with the FBI, DOJ, and IRS Criminal Investigation.

In 2025, the SBA OIG is aggressively investigating PPP and EIDL loan fraud. They’ve identified billions of dollars in potentially fraudulent loans, and they’re systematically reviewing applications that triggered fraud detection systems. Congress extended the statute of limitations for COVID loan fraud to 10 years, so investigations will continue well into the 2030s.

Recent enforcement actions show how seriously the government is taking PPP fraud. In June 2025, Stephanie Hockridge was convicted for her role in a scheme to fraudulently obtain tens of millions through PPP. Fourteen defendants were arrested in May 2025 for obtaining over $25 million in fraudulent loans. The government is prosecuting these cases aggressively.

Why the SBA OIG Contacts You

The OIG contacts borrowers when they’ve identified potential fraud. They’re not reaching out for routine loan servicing questions – your lender handles that. The OIG contacts you because their investigation found discrepancies between your loan application and other evidence.

Common triggers include mismatches between your application and IRS records, suspicious use of loan funds identified through bank account analysis, multiple loans to related businesses or individuals, businesses created shortly before or after pandemic eligibility dates, or Suspicious Activity Reports filed by your bank.

The SBA OIG uses data analytics to cross-check every loan application against IRS tax data, Social Security wage records, state business registration databases, and other government information. Automated systems flag discrepancies, and then human investigators review those flagged applications.

Forms of Contact from the SBA OIG

The OIG might send a letter requesting documents, call asking to schedule an interview, show up at your business unannounced, or issue a grand jury subpoena demanding documents or testimony.

Your response is critical. How you handle OIG contact determines whether you face criminal charges and what evidence prosecutors have against you.

Document Requests

OIG document requests typically demand business records, tax returns, bank statements, and payroll documentation. Don’t respond without legal representation. Every document you produce can become evidence in a criminal prosecution.

Interview Requests

OIG agents might ask to interview you. They’ll say they just want to “clear up some questions.” Don’t believe them. If the OIG wants to interview you, they’re building a criminal case.

Anything you say can be used against you. If your statements conflict with documents or other witness testimony, you’ll face additional charges for making false statements to federal agents.

Politely decline and contact a federal criminal defense attorney immediately. We handle all communication with the OIG.

What the OIG Investigation Process Looks Like

OIG investigations follow a predictable pattern. First, they gather documents – from you, your bank, your lender, IRS. They analyze those documents looking for evidence of false statements or misuse of funds.

Second, they interview witnesses. Your employees, business partners, accountants. They’re asking everyone about your business and loan application.

Third, they present findings to the DOJ. If OIG investigators believe they have evidence of criminal fraud, they refer the case to federal prosecutors. The US Attorney’s Office decides whether to file charges.

This process takes months. You might not hear anything for a long time after initial OIG contact. That doesn’t mean the investigation stopped.

Civil vs Criminal Investigations

Not every OIG investigation becomes criminal. Some cases stay civil – meaning the government demands repayment of the loan but doesn’t file criminal charges.

The distinction between civil and criminal depends on the evidence. Small discrepancies or honest mistakes typically stay civil. But false statements about basic eligibility requirements, fabricated documentation, or intentional misuse of funds typically trigger criminal referrals.

At Spodek Law Group, our goal is keeping your case on the civil track. We negotiate with the OIG and DOJ to resolve matters through repayment rather than prosecution. We present evidence showing mistakes rather than fraud, good faith reliance on professional advice, or circumstances that mitigate criminal exposure.

What You Should Do Immediately

If the SBA OIG has contacted you, take these steps immediately. First, don’t respond without an attorney. Don’t provide documents, don’t agree to an interview, don’t try to explain discrepancies.

Second, preserve all documents related to your loan. Don’t delete emails, don’t destroy records, don’t alter documentation. Destroying evidence is obstruction of justice – a separate federal crime.

Third, don’t discuss your loan with anyone except your attorney. Everyone you talk to can be subpoenaed to testify about those conversations.

Fourth, contact Spodek Law Group immediately. We represent clients in OIG investigations nationwide. We have former federal prosecutors who understand exactly how these investigations work.

How We Defend Against OIG Investigations

When the SBA OIG contacts you, we immediately assess your exposure. We review your loan application and supporting documentation to identify potential problems before the government finds them.

We handle all communication with the OIG. We determine what information they’re seeking, what evidence they already have, and whether they’re planning to refer your case to DOJ for criminal prosecution.

We present evidence and arguments that minimize your criminal exposure. Sometimes we can convince the OIG that discrepancies resulted from honest mistakes rather than intentional fraud. Sometimes we negotiate voluntary repayment that resolves the matter without criminal charges. Sometimes we prepare for the possibility that prosecutors file an indictment.

Our managing partner, Todd Spodek, is a second-generation criminal defense attorney who has handled hundreds of federal cases. We represented Anna Delvey in the case that became a Netflix series. We handled the Ghislaine Maxwell juror misconduct matter. We take on complex federal investigations that other firms avoid.

The Stakes Are High

OIG investigations lead to serious consequences. Federal PPP fraud charges carry up to 30 years in prison per count. Convictions result in prison time, restitution orders requiring full repayment, fines up to $1,000,000, and seizure of assets purchased with loan proceeds.

Even if you avoid criminal charges, the government can pursue civil penalties. False Claims Act cases allow triple damages plus penalties.

Don’t wait to get legal help. The earlier we’re involved, the better your outcome. If we represent you before the OIG refers your case to prosecutors, we can sometimes prevent criminal charges entirely.

Contact Spodek Law Group immediately if the SBA Office of Inspector General has contacted you. We’re available 24/7. Your freedom depends on the decisions you make right now – don’t face the OIG alone.