Baltimore EIDL Loan Fraud Lawyers

Baltimore EIDL Loan Fraud Lawyers

The SBA Office of Inspector General contacted you about your EIDL loan. Or federal agents in Baltimore asked about your Economic Injury Disaster Loan application. You’re in Maryland. A federal jury just convicted a former Baltimore City Council candidate for nearly $1.7 million in EIDL and PPP fraud. Her sentencing is scheduled for August 2025. The District of Maryland established a dedicated COVID-19 fraud strike force – one of only five nationwide – to prosecute these cases.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended federal EIDL fraud cases in Maryland for over 40 years. We know how aggressively District of Maryland prosecutors charge pandemic loan fraud and what outcomes you’re facing.

The federal government approved EIDL loans in 2020 with minimal verification. Now in 2025, they’re prosecuting Baltimore-area business owners. A Baltimore County businessman received 1 year in prison plus 1 year home confinement for $1.3 million in fraudulent loans in May 2025. Here’s what happens in YOUR situation.

Baltimore City Council Candidate Convicted

Nichelle Henson, 38, of Baltimore – a former Baltimore City Council candidate – was convicted by a federal jury of making false statements and bank fraud for obtaining nearly $1.7 million in EIDL and PPP loans. U.S. District Judge Matthew J. Maddox scheduled her sentencing for August 5, 2025. Federal prosecutors proved she submitted fraudulent applications. The jury convicted her after trial, which means she faces statutory maximum sentences – potentially 30 years for wire fraud and 30 years for bank fraud under 18 U.S.C. § 1014.

David Epstein, an Owings Mills businessman, was sentenced by U.S. District Judge Richard D. Bennett in May 2025 to one year and one day in federal prison plus 12 months of home incarceration for fraudulently obtaining over $1.3 million in CARES Act loans. One year prison plus one year house arrest for $1.3 million shows District of Maryland judges are imposing split sentences – combination of prison and home confinement – even for substantial fraud amounts when defendants cooperate.

Edward McCorkle, 37, of Baltimore County pled guilty to wire fraud after fraudulently obtaining $523,700 in CARES Act loans. His sentencing is scheduled for January 27, 2026. Andra Shirone Thompson of Silver Spring was sentenced by U.S. District Judge Lydia K. Griggsby to one year and one day in prison for conspiracy to commit wire fraud related to fraudulent EIDL and PPP applications on March 19, 2025.

What these cases demonstrate: District of Maryland prosecutes everyone – political candidates, businessmen, conspiracy defendants. The sentencing range varies based on loss amount, cooperation, and whether you go to trial. Henson went to trial and now faces decades. Epstein pled guilty and received 2 years total (1 year prison + 1 year home). Thompson pled guilty and received 1 year + 1 day.

Maryland’s COVID Fraud Strike Force

The District of Maryland Strike Force is one of only five federal strike forces nationwide dedicated to investigating and prosecuting COVID-19 fraud. The Department of Justice established these strike forces in high-fraud jurisdictions. Baltimore is a priority district. The strike force includes prosecutors from the U.S. Attorney’s Office, FBI agents, IRS Criminal Investigation agents, and SBA Office of Inspector General investigators working full-time on pandemic fraud cases.

This means investigations move faster in Baltimore than in districts without strike forces. Cases progress from initial SBA audit to federal indictment in 6-12 months instead of 12-24 months. Federal agents have more resources, more expertise, and institutional support for aggressive prosecution. The strike force has prosecuted dozens of EIDL and PPP fraud cases since 2020.

How EIDL Fraud Investigations Work in Baltimore

EIDL investigations begin when SBA OIG flags your application. Automated systems cross-reference applications against IRS records – business tax returns, personal tax returns if sole proprietorship, quarterly payroll filings. Discrepancies trigger investigation. Common red flags: business revenue on application doesn’t match tax returns, business formed during pandemic, multiple applications for related businesses, suspicious spending patterns after loan funding.

Stage one: SBA OIG sends letter requesting documentation. This is administrative – still civil. Stage two: If fraud suspected, referral to strike force prosecutors. Stage three: FBI and IRS-CI agents subpoena bank records, interview partners and employees, build case for federal charges. Timeline: 6-12 months in District of Maryland due to strike force priority. By the time you’re indicted, they have overwhelming documentary evidence.

The mistake Baltimore business owners make: responding to initial SBA letters without legal counsel. They think cooperation resolves it. They explain their accountant made errors, they estimated revenue, they misunderstood application questions. Those statements become evidence of criminal intent. “I may have overestimated my revenue” = admission you knowingly submitted false information. By the time they hire an attorney, they’ve confessed.

What Sentences You’re Actually Facing

EIDL fraud sentencing follows the federal guidelines based on loss amount. Under $100,000 with cooperation: 6-18 months typical. $100,000-$500,000: 18 months to 3 years. $500,000-$1 million: 2-5 years. Over $1 million: 3-7 years with plea, 10-30 years if convicted at trial. Epstein got 2 years total (1 year prison + 1 year home) for $1.3 million with a guilty plea. Henson faces 10-20 years for $1.7 million after trial conviction.

Restitution is mandatory. You must repay the full EIDL amount plus interest. This federal debt survives bankruptcy. Epstein owes over $1.3 million. McCorkle owes $523,700. Probation after prison lasts 3-5 years with severe restrictions: cannot start/manage a business without permission, continuous financial monitoring, potential travel restrictions.

The critical decision: plea deal versus trial. Federal EIDL fraud cases have 95%+ conviction rates at trial. Documentary evidence – your application, IRS records, bank statements – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums. Henson went to trial and now faces 30+ years exposure versus the 3-5 years she would have faced with a guilty plea.

At Spodek Law Group – Todd Spodek has defended federal fraud cases in Maryland for many, many, years. If the SBA contacted you – if strike force agents asked to interview you – if your account was frozen – time matters. District of Maryland prosecutes aggressively. Baltimore has a dedicated strike force. Call 212-300-5196.