Baltimore PPP Loan Fraud Lawyers

Baltimore PPP Loan Fraud Lawyers

Your PPP loan was flagged. Federal agents in Baltimore contacted you. Or the SBA sent an audit letter about your Paycheck Protection Program application. You’re in Maryland. The District of Maryland established a dedicated COVID-19 fraud strike force – one of five nationwide. A former Baltimore City Council candidate was just convicted by jury for $1.7 million in PPP and EIDL fraud. Her sentencing is August 2025. The strike force prosecutes aggressively.

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

The SBA approved your PPP loan in 2020 with minimal verification. Now they’re prosecuting. A Baltimore County businessman got 1 year prison plus 1 year home confinement for $1.3 million in May 2025. Here’s what happens in YOUR Baltimore case.

Recent Baltimore Convictions and Sentences

Nichelle Henson, 38, Baltimore City Council candidate, was convicted by federal jury of bank fraud and false statements for obtaining nearly $1.7 million in PPP and EIDL loans. Judge Matthew J. Maddox scheduled sentencing for August 5, 2025. She went to trial and lost – now faces statutory maximum sentences of 30 years for wire fraud and 30 years for bank fraud under 18 U.S.C. § 1014. Realistic sentence: 7-12 years after trial conviction for $1.7 million.

David Epstein, Owings Mills businessman, was sentenced by Judge Richard D. Bennett in May 2025 to 1 year + 1 day in prison plus 12 months home incarceration for fraudulently obtaining over $1.3 million in CARES Act loans. He pled guilty and cooperated. Compare: Epstein pled guilty and got 2 years total. Henson went to trial and faces 10+ years. The trial penalty is real.

Edward McCorkle, 37, Baltimore County, pled guilty to wire fraud after fraudulently obtaining $523,700. Sentencing scheduled January 27, 2026. Andra Shirone Thompson, Silver Spring, was sentenced by Judge Lydia K. Griggsby to 1 year + 1 day for conspiracy to commit wire fraud related to PPP and EIDL applications on March 19, 2025.

PPP-Specific Fraud Detection in Maryland

PPP fraud detection is automated. Every application was cross-referenced against IRS Form 941 quarterly payroll tax returns. You claimed 20 employees on your PPP application. Your 941s show 5 employees. Computer flagged you. The SBA Office of Inspector General reviewed the flag and referred to District of Maryland strike force for criminal investigation.

Bank Secrecy Act reports trigger investigations. When you withdrew large cash, made luxury purchases, or transferred PPP funds to personal accounts – your bank filed Suspicious Activity Reports. Those go to federal law enforcement. PPP loan forgiveness applications create second fraud exposure. When you applied for forgiveness, you certified funds went to payroll, rent, utilities. Strike force agents subpoena bank records and trace every dollar. If funds went to personal credit cards, investments, or prohibited expenses – that’s wire fraud when you certified the opposite on forgiveness applications.

Maryland Strike Force Moves Fast

District of Maryland COVID Fraud Strike Force is one of only five nationwide. Justice Department established them in high-fraud jurisdictions. Baltimore qualifies. Strike force includes dedicated prosecutors from U.S. Attorney’s Office, FBI agents, IRS Criminal Investigation agents, and SBA-OIG investigators working full-time on pandemic fraud. This means faster investigations than non-strike-force districts. Cases progress from SBA audit to indictment in 6-12 months instead of 12-24 months. Agents have more resources, specialized training, and institutional priority.

Strike force prosecutes everyone – political candidates (Henson), businessmen (Epstein, McCorkle), conspirators (Thompson). No one gets a pass. Sentencing follows the federal guidelines: Under $100,000 with cooperation: 6-18 months. $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 trial conviction. Epstein’s 2-year sentence ($1.3M with plea) versus Henson’s upcoming 10+ year sentence ($1.7M after trial) shows the sentencing gap.

Restitution is mandatory – full PPP amount plus interest. Federal debt that survives bankruptcy. Epstein owes $1.3 million. McCorkle owes $523,700. Probation after prison: 3-5 years supervised release, cannot start/manage business without permission, continuous financial monitoring.

The critical mistake Baltimore business owners make: responding to initial SBA audits without counsel. They think cooperation resolves it administratively. They explain their accountant made errors or they estimated payroll. Those statements become evidence. “I may have inflated employee count” = admission of fraud. By the time they hire an attorney, they’ve confessed to federal agents.

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