Buffalo EIDL Loan Fraud Lawyers

Buffalo EIDL Loan Fraud Lawyers

The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents contacted you in Buffalo asking about your Economic Injury Disaster Loan application. You’re in New York. An Amherst businessman – Buffalo suburb – was just sentenced in July 2025 to time served plus 5 years supervised release including 1 year home detention. He was ordered to pay $3,197,562 in restitution and forfeit $1,888,603. He filed fraudulent EIDL and PPP applications and received approximately $450,600 in EIDL loans. A Buffalo man used the identities of at least 63 individuals to defraud lenders out of at least $3.5 million – his sentencing is scheduled for April 29, 2025. The Western District of New York 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 New York for over 40 years. We know how Western 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 Buffalo-area business owners. A Niagara Falls man pled guilty in August 2025 to conspiracy to commit wire fraud and bank fraud for defrauding COVID relief programs out of more than $1.8 million. His sentencing is scheduled for October 29, 2025. Here’s what happens in YOUR situation.

Buffalo Man Used 63 Stolen Identities

Paul Paredes, 53, of Buffalo pled guilty to wire fraud and aggravated identity theft, which carry a mandatory minimum penalty of two years in prison, a maximum of 20 years, and a $250,000 fine. Paredes used the identity of at least 63 individuals to defraud at least 23 victim lenders, utilizing at least 12 different bank accounts. The total loss amount is at least $3,500,000. Sentencing is scheduled for April 29, 2025 at 2:30 PM. Aggravated identity theft under 18 U.S.C. § 1028A carries a mandatory consecutive 2-year prison sentence on top of any wire fraud sentence under 18 U.S.C. § 1343. Paredes faces realistically 4-7 years in federal prison when sentenced in April 2025 – the 2-year mandatory minimum for identity theft plus 2-5 years for $3.5 million wire fraud.

Hormoz Mansouri, 71, of Amherst was sentenced in July 2025 to time served and five years’ supervised release, to include one year of home detention. He was ordered to pay restitution totaling $3,197,562 and to forfeit $1,888,603. Mansouri filed fraudulent loan applications under both the PPP and EIDL programs. The Mansouri-controlled entities received approximately $450,600 in Economic Injury Disaster Loans. The restitution amount of $3,197,562 far exceeds the $450,600 in EIDL funds received – this includes PPP fraud, interest, penalties, and forfeiture. Federal debt survives bankruptcy.

Niagara Falls Man Faces October 2025 Sentencing

Roberto Soliman, 43, of Niagara Falls pled guilty in August 2025 before Judge Meredith A. Vacca to conspiracy to commit wire fraud and bank fraud, which carry a maximum penalty of 30 years in prison and a $1,000,000 fine. Between March 2020 and March 2024, Soliman and co-defendant John Hutchins conspired with others to file fraudulent loan applications under the Economic Injury Disaster Loan program, the Paycheck Protection Program, and the Shuttered Venue Operators Grant. In support of each of the loans, Soliman and Hutchins submitted false revenue and expense figures for the businesses on the loan applications. The fraud totaled more than $1.8 million in COVID relief funds. Sentencing is scheduled for October 29, 2025. Soliman likely faces 3-7 years in federal prison for a $1.8 million fraud with guilty plea and cooperation.

Nina M. Williams, 56, of Baltimore, Maryland pled guilty in September 2024 before Senior U.S. District Judge William M. Skretny to wire fraud in a case prosecuted in Western District of New York. Williams intended to fraudulently obtain a total of approximately $2.6 million in PPP and EIDL funds, and in fact fraudulently obtained approximately $1.5 million. She faces a maximum penalty of 20 years in prison and a $250,000 fine. Her sentencing date was not published, but she likely faces 2-5 years for $1.5 million fraud with guilty plea.

How EIDL Fraud Gets Detected in Buffalo

EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships. Soliman and Hutchins submitted false revenue and expense figures – those discrepancies were flagged immediately when compared to tax returns. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Buffalo, FBI handles EIDL investigations, often working with IRS Criminal Investigation.

Bank Secrecy Act reports trigger investigations. Paredes used 12 different bank accounts to process $3.5 million in fraudulent loans using 63 stolen identities. Each new account opened with stolen identity information generates reports. Large transfers between accounts trigger Suspicious Activity Reports. Banks cross-reference account applications against credit bureaus and government databases – when one person opens 12 accounts using different identities, all accounts are flagged. Federal agents subpoena bank records and trace every dollar. Identity theft patterns – multiple applications from different identities going to the same bank accounts – are easily detected. Mansouri’s fraudulent applications for multiple entities receiving $450,600 in EIDL loans created paper trails of related applications from supposedly independent businesses going to accounts Mansouri controlled.

Western District New York 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. Mansouri received time served plus 5 years supervised release with 1 year home detention for $450,600 in EIDL fraud – lenient due to age (71), cooperation, and health factors. Paredes faces 4-7 years for $3.5 million with aggravated identity theft. Soliman likely faces 3-7 years for $1.8 million fraud when sentenced in October 2025.

Restitution is mandatory – you must repay the full EIDL amount plus interest and penalties. This federal debt survives bankruptcy. Mansouri owes $3,197,562 and must forfeit $1,888,603. Paredes will owe at least $3,500,000. Soliman will owe over $1,800,000. Probation terms after prison: 3-5 years supervised release, cannot start/manage a business without permission, continuous financial monitoring. Mansouri’s 5-year supervised release with 1 year home detention demonstrates these restrictions continue long after any prison sentence.

The critical decision: plea deal versus trial. Federal EIDL fraud cases have 97%+ conviction rates at trial. Documentary evidence – your application, your bank records, your IRS filings, identity theft evidence – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. Paredes pled guilty and faces 4-7 years. If he had gone to trial and been convicted for $3.5 million fraud with 63 stolen identities, he would have faced 10-20 years in prison.

Timeline: From initial SBA contact to indictment typically runs 6-18 months. Western District of New York prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, identity verification records, witness statements. The mistake Buffalo business owners make: responding to initial SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have used family members’ information” become admissions of fraud and identity theft. By the time they hire an attorney, they’ve confessed.

At Spodek Law Group – Todd Spodek has defended federal fraud cases in New York for many, many, years. If the SBA contacted you about your EIDL loan – if federal agents asked to interview you – time matters. Western District of New York prosecutes aggressively. Call 212-300-5196.