Baton Rouge EIDL Loan Fraud Lawyers

Baton Rouge EIDL Loan Fraud Lawyers

The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents in Baton Rouge asked about your Economic Injury Disaster Loan application. You’re in Louisiana. A federal jury just convicted a Baton Rouge man in September 2025 for EIDL fraud – he used $23,272 in EIDL funds to pay 11 years of unpaid property taxes on his residence. U.S. District Judge Brian A. Jackson sentenced him in August 2025. The Middle District of Louisiana prosecutes aggressively.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended federal EIDL fraud cases in Louisiana for over 40 years. We know how Middle District 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 Baton Rouge business owners. Three Baton Rouge individuals were sentenced in August 2025 for defrauding pandemic programs of at least $87,663. Here’s what happens in YOUR situation.

Baton Rouge Man Convicted After Trial

Kevan Andre Hills, 32, of Baton Rouge was convicted by a federal jury in September 2025 of wire fraud and engaging in unlawful monetary transactions. Hills submitted an EIDL application in the name of “Baton Rouge Teen Summit” – a supposed non-profit organization. He represented that this organization had 25 employees and over $184,000 in annual operating expenses. Both representations were false. The SBA approved the application and deposited $159,900 in total EIDL funds into a bank account owned and controlled by Hills. Hills subsequently used $23,272 of these EIDL funds to pay eleven years worth of unpaid property taxes on his personal residence. He went to trial and was convicted – Judge Brian A. Jackson sentenced him in August 2025. Trial convictions result in harsher sentences than guilty pleas. Hills likely faces 3-7 years in federal prison for wire fraud under 18 U.S.C. § 1343.

Devin Tyrone Stampley Jr., 33, and Asia Deshan Guess, 28, both of Baton Rouge, were also sentenced by Judge Jackson on August 21, 2025. Stampley, Hills, and their co-conspirators submitted false and fraudulent applications seeking at least $293,498 in funds from the PPP, EIDL, and CARES Act unemployment benefits programs. They ultimately defrauded the federal pandemic assistance programs of at least $87,663 by posing as fake small business owners. Stampley and Guess pled guilty – their sentences will be significantly lighter than Hills’ trial conviction sentence.

How EIDL Fraud Gets Detected

EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships, quarterly payroll filings. You claimed $200,000 in annual revenue on your EIDL application. Your Schedule C shows $45,000. Computer flagged you immediately. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Baton Rouge, FBI handles EIDL investigations, often working with IRS Criminal Investigation.

Bank Secrecy Act reports trigger investigations. When you used EIDL funds for personal expenses – property taxes like Hills, personal credit card payments, luxury purchases – your bank filed Suspicious Activity Reports. Those go directly to federal law enforcement. Hills’ use of $23,272 for personal property taxes flagged his account. Loan forgiveness applications create second fraud exposure. When you applied for EIDL increase or loan modification, you certified business hardship. Federal agents subpoena bank records and trace every dollar. If funds went to personal expenses instead of business operations – that’s wire fraud when you certified the opposite.

Middle District Louisiana Sentencing

EIDL fraud sentencing follows the federal guidelines based on loss amount. Under $100,000 with cooperation: 6-18 months. $100,000-$500,000: 2-4 years. $500,000-$1 million: 4-7 years. Over $1 million: 5-10 years with plea, 10-20+ years if convicted at trial. Hills went to trial with $159,900 in losses and personal tax payment misuse – likely faces 3-5 years. Stampley and Guess pled guilty for $87,663 fraud – likely 12-24 months each.

Restitution is mandatory – you must repay the full EIDL amount plus interest. This federal debt survives bankruptcy. Hills owes $159,900. Probation terms after prison: 3-5 years supervised release, cannot start/manage a business without permission, continuous financial monitoring. The critical decision: plea deal versus trial. Federal EIDL fraud cases have 97%+ conviction rates at trial. Documentary evidence – your application, your IRS records, your bank statements – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. Hills went to trial and faces significantly more prison time than Stampley and Guess who pled guilty.

Timeline: From initial SBA contact to indictment typically runs 6-18 months. Middle District of Louisiana prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, witness statements. The mistake Baton Rouge business owners make: responding to initial SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have used some funds for personal expenses” become admissions of fraud. By the time they hire an attorney, they’ve confessed.

At Spodek Law Group – Todd Spodek has defended federal fraud cases in Louisiana for many, many, years. If the SBA contacted you about your EIDL loan – if federal agents asked to interview you – time matters. Middle District hands down serious prison sentences. Call 212-300-5196.