Atlanta PPP Loan Fraud Lawyers

Atlanta PPP Loan Fraud Lawyers

The SBA flagged your PPP loan for audit. Or federal agents in Atlanta – FBI, HSI – contacted you about your Paycheck Protection Program application. You’re in Georgia facing potential federal charges. The Northern District of Georgia just convicted a Marietta man for $9.6 million in PPP fraud in July 2025. His sentencing is scheduled for November. Here’s what happens in Atlanta federal court when PPP fraud is prosecuted.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended clients facing federal PPP fraud prosecutions in the Northern District of Georgia for over 40 years. We know how aggressively Atlanta federal prosecutors charge these cases, what sentences judges actually impose, and what strategies work in 2025.

The federal government approved your PPP loan in 2020 with minimal verification – sometimes in 24 hours. Now in 2025, the same government is prosecuting Atlanta business owners for applications they greenlit. A former assistant city attorney and a police officer were sentenced for a $15 million PPP fraud scheme. If prosecutors will charge law enforcement officers and attorneys, they will absolutely prosecute anyone.

Recent Atlanta PPP Sentencings Show the Range

Jerry Baptiste received 6 and a half years in federal prison in February 2025 for his role in a PPP fraud scheme. He was ordered to pay $830,417 in restitution plus 3 years of supervised release after prison. Johnson Dieujuste of Loganville, Georgia was sentenced in January 2025 to 2 years and 8 months in prison plus $2,081,559 in restitution. Both cases were prosecuted in the Northern District of Georgia. The sentencing gap between 2.5 years and 6.5 years depends on the loss amount, cooperation level, and criminal history. Carl Delano Torjagbo was convicted by a federal jury in July 2025 of bank fraud, wire fraud, and money laundering after obtaining a fraudulent $9.6 million PPP loan and filing fraudulent tax returns that generated a $3.4 million IRS refund. His sentencing is scheduled for November 3, 2025. For a $9.6 million fraud, federal guidelines recommend 10-15 years in prison even with a guilty plea. If Torjagbo goes to trial and is convicted, he’s facing 15-20 years.

Then there’s the multi-defendant cases. A former assistant city attorney and a police officer were sentenced for an approximately $15 million PPP fraud scheme. Twenty defendants were charged in a wide-ranging conspiracy to steal PPP funds – Jerry Baptiste was the last to be sentenced. Ten individuals face federal charges in a fraud and money laundering operation that targeted the PPP program, charged in August 2025.

What these cases demonstrate: Atlanta federal court doesn’t treat PPP fraud as a minor offense. The days of probation-only sentences ended in 2022. Every PPP fraud defendant sentenced in 2024-2025 has received prison time if the loss exceeded $100,000.

PPP-Specific Fraud Patterns Atlanta Prosecutors Target

PPP fraud differs from EIDL fraud in key ways. The PPP application required certification about payroll costs – number of employees and monthly payroll expenses. Federal prosecutors prove fraud by comparing your PPP application against your IRS Form 941 quarterly payroll tax returns. If you claimed 15 employees on your PPP application but your 941 forms show 3 employees, that’s documentary proof of fraud.

PPP loan forgiveness creates a second fraud opportunity. When you applied for forgiveness, you certified that PPP funds were used for payroll, rent, and utilities. Federal investigators subpoena your bank records and trace every dollar. If the funds went to personal credit cards, luxury purchases, or investments – that’s misuse of PPP funds, which becomes wire fraud when you certified the opposite on your forgiveness application.

The Torjagbo case illustrates multiple fraud charges. He obtained a fraudulent $9.6 million PPP loan (bank fraud and wire fraud), then filed false tax returns claiming the fraudulent income to generate a $3.4 million tax refund (tax fraud), then moved the money through accounts (money laundering). Each separate act is a separate federal charge. Atlanta prosecutors stack charges to increase maximum penalties and create pressure for guilty pleas.

What Prison Time You’re Actually Facing

PPP fraud sentencing in Atlanta follows the federal guidelines based on loss amount. Under $100,000 with cooperation: 12-24 months typical. $100,000-$500,000: 2-4 years. $500,000-$1 million: 3-6 years. Over $1 million: 5-10 years with plea, 10-20 years if convicted at trial. Northern District of Georgia judges sentence at the high end of guideline ranges, not the low end. Jerry Baptiste’s 6.5-year sentence for $830,417 shows this – the low end of the guideline for that amount would be 4-5 years.

Restitution is mandatory. You must repay the full PPP loan amount plus interest. This federal debt survives bankruptcy. Johnson Dieujuste owes over $2 million – he’ll be paying that for the rest of his life. Supervised release after prison lasts 3-5 years with severe restrictions: no starting a business without permission, continuous financial monitoring, potential travel restrictions.

The critical decision point: accepting a plea deal versus going to trial. Federal PPP fraud cases have a 97% conviction rate at trial. The documentary evidence – your PPP application, your IRS records, your bank statements – makes conviction nearly certain. The “trial penalty” is real: if you’re convicted at trial, you face statutory maximum sentences instead of reduced plea sentences. Carl Torjagbo went to trial and was convicted. He’s now facing 10+ years more prison time than if he had pled guilty.

PPP fraud investigations in Atlanta begin when the SBA Office of Inspector General flags your loan. Automated systems cross-reference applications against IRS records. Discrepancies trigger investigation. Stage one: SBA audit requesting documentation. Stage two: Referral to federal law enforcement (FBI typically handles PPP cases). Stage three: Grand jury investigation with subpoenas for bank records, interviews of employees and partners, building the prosecution. Timeline: 6-18 months from initial SBA contact to indictment. The Northern District of Georgia prioritizes pandemic fraud cases – they have dedicated prosecutors and move faster than many districts.

The mistake Atlanta business owners make: responding to SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have overestimated payroll” become admissions of fraud. By the time they hire an attorney, they’ve already confessed. If SBA contacts you about your PPP loan, do not respond without consulting federal criminal defense counsel experienced in 18 U.S.C. § 1014 cases (false statements to SBA).

At Spodek Law Group – Todd Spodek has defended federal fraud cases in Atlanta for many, many, years. We know Northern District of Georgia prosecutors, we know the judges, we know what works. If you’re under investigation for PPP fraud – if agents contacted you – if your loan was flagged – time matters. Atlanta prosecutes aggressively. Call 212-300-5196.