Boston PPP Loan Fraud Lawyers

Boston PPP Loan Fraud Lawyers

Your PPP loan was flagged for audit. Federal agents contacted you about your Paycheck Protection Program application. Or your bank froze your account due to SBA investigation. You’re in Massachusetts. A Boston man was just sentenced in December 2024 for fraudulently obtaining PPP funds – he received $20,833 and spent it on non-business-related expenses, including transactions at Encore Boston Harbor Casino. Another Boston man was sentenced in November 2024 for fraudulently obtaining nearly $50,000 in PPP funds. A Boston woman was sentenced in February 2025 and ordered to pay $18,750 in restitution. The District of Massachusetts prosecutes aggressively.

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

The SBA approved your PPP loan in 2020 – sometimes in 24 hours – without verification. Now in 2024-2025, they’re prosecuting. Two individuals were sentenced in June 2024 for their roles in a multi-state scheme to obtain $7 million in PPP funds through fraudulent applications. A former Randolph resident pled guilty in June 2025 to three counts of wire fraud and faces sentencing in October 2025 – he used stolen personal identifying information for one of his PPP applications. Here’s what happens in YOUR situation.

Casino Gambling with PPP Funds

A Boston man was sentenced in December 2024 in federal court in Boston after being convicted of fraudulently obtaining pandemic-related relief funds from the Paycheck Protection Program. He received approximately $20,833 in PPP funds, which he then spent on non-business-related expenses, including transactions at Encore Boston Harbor Casino. Using PPP funds for casino gambling is wire fraud under 18 U.S.C. § 1343 when you certified on the application that funds would go to payroll, rent, and utilities. Casino transactions trigger automatic Suspicious Activity Reports from banks – every transaction over certain thresholds at gaming establishments gets reported to federal law enforcement.

Another Boston man was sentenced on November 15, 2024 for fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the PPP for nearly $50,000. A Boston woman was sentenced in federal court in Boston on February 13, 2025 for a scheme to fraudulently obtain pandemic-related relief funds from the PPP. She received approximately $18,750 based on the fraudulent application and was ordered to pay $18,750 in restitution plus supervised release. These cases show District of Massachusetts judges impose sentences even for smaller fraud amounts – under $50,000 still results in federal convictions, restitution, and supervised release.

$7 Million Multi-State PPP Fraud Ring

Two individuals were sentenced in federal court in Boston in June 2024 for their roles in a multi-state scheme to obtain millions of dollars in PPP funds through fraudulent applications. Between May and August 2020, the scheme obtained approximately $7 million in PPP funds. Borrowers paid kickbacks equal to 10 or 20 percent of the loan amount to the conspirators who prepared the fraudulent applications. Collectively, over $1 million in kickback payments was received by the fraud ring organizers. This demonstrates how PPP fraud often involves conspiracy charges when multiple people coordinate fraudulent applications. Conspiracy to commit wire fraud carries the same 20-year statutory maximum as wire fraud itself.

Rindal Pierre-Canel, a Los Angeles man who formerly resided in Randolph, Massachusetts, pleaded guilty on June 24, 2025 to three counts of wire fraud. U.S. District Judge Myong J. Joun scheduled sentencing for October 1, 2025. Between March 2021 and May 2021, Pierre-Canel submitted three fraudulent applications seeking and receiving over $50,000 in PPP funds. Two applications were submitted in his own name, and one used stolen personal identifying information. Using stolen identity for PPP applications adds aggravated identity theft charges under 18 U.S.C. § 1028A, which carries a mandatory consecutive 2-year prison sentence on top of the wire fraud sentence. Pierre-Canel faces up to 20 years per wire fraud count when sentenced in October 2025.

How PPP Fraud Gets Detected

PPP fraud detection is automated. Every PPP application was cross-referenced against IRS Form 941 quarterly payroll tax returns. You claimed employees and payroll on your PPP application. Your 941s show different numbers – or no filings at all. Computer flagged you immediately. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Boston, FBI handles PPP investigations, often working with IRS Criminal Investigation.

Bank Secrecy Act reports trigger investigations. When you used PPP funds for casino gambling – like the Encore Boston Harbor transactions – your bank filed Suspicious Activity Reports automatically. Casino transactions, large cash withdrawals, luxury purchases, transfers to personal accounts all generate reports that go directly to federal law enforcement. The $7 million fraud ring’s kickback structure – borrowers paying 10-20% of loan amounts – created paper trails of suspicious transfers between accounts. Federal agents subpoena bank records and trace every dollar. Loan forgiveness applications create second fraud exposure. When you applied for forgiveness, you certified PPP funds went to payroll, rent, utilities. If funds went to casinos, luxury items, or kickback payments – that’s wire fraud when you certified the opposite.

District of Massachusetts Sentencing

PPP 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. The casino gambler received a sentence for $20,833 fraud with guilty plea. The woman who received $18,750 was sentenced in February 2025 to supervised release with $18,750 restitution. Pierre-Canel faces likely 18-36 months when sentenced in October 2025 for $50,000+ fraud with aggravating factor of stolen identity.

Restitution is mandatory – you must repay the full PPP amount plus interest. This federal debt survives bankruptcy. The woman sentenced in February 2025 owes $18,750. The casino gambler owes $20,833. Pierre-Canel will owe over $50,000. 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 PPP fraud cases have 97%+ conviction rates at trial. Documentary evidence – your application, your IRS records, your bank statements, casino transaction records – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. Pierre-Canel faces up to 20 years per count if sentenced at statutory maximum, though realistic sentence after guilty plea is 18-36 months.

Timeline: From initial SBA contact to indictment typically runs 6-18 months. District of Massachusetts prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, casino transaction records, witness statements. The mistake Boston 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 Massachusetts for many, many, years. If the SBA contacted you about your PPP loan – if federal agents asked to interview you – time matters. District of Massachusetts prosecutes aggressively. Call 212-300-5196.