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The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents contacted you in Charleston asking about your Economic Injury Disaster Loan application. You’re in South Carolina. Three brothers who operate a string of restaurants in the Charleston area were just sentenced in March 2025 for wire fraud conspiracy and wire fraud. They applied for at least 22 PPP and EIDL loans totaling more than $2.5 million using false representations and fraudulent documentation. The ringleader brothers received 24 months in federal prison. The third brother received 12 months and 1 day. They owe $1,268,386.50 in restitution. A Mt. Pleasant business owner was sentenced in February 2025 to 1.5 years in federal prison for defrauding the SBA of approximately $214,000 in fraudulent EIDL and PPP loans. The District of South Carolina 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 South Carolina for over 40 years. We know how District of South Carolina 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 Charleston-area business owners. Five Lowcountry individuals were sentenced in June 2024 for their role in a COVID-19 loan fraud scheme involving 3 EIDL advances and 12 PPP loans totaling $295,841. Sentences ranged from time served to 33 months in prison. Here’s what happens in YOUR situation.
William Chan, 40, and Siu Chan, 32, pleaded guilty to wire fraud conspiracy and were sentenced in March 2025 to 24 months imprisonment, followed by a three-year term of court-ordered supervision. The third brother, Ka Ho Chan, 33, pleaded guilty to two counts of wire fraud and was sentenced to 12 months and one day imprisonment, followed by a three-year term of court-ordered supervision. The brothers, along with other family members, operate a string of restaurants in the Charleston area. Beginning in March 2020, the Chan brothers applied for Paycheck Protection Program and Emergency Injury Disaster Loans funds using false representations and fraudulent documentation. The evidence presented for William and Siu Chan revealed that at least 22 PPP and EIDL loans were applied for and received totaling more than $2.5 million. The outstanding restitution owed in the amount of $1,268,386.50 was ordered. Wire fraud carries statutory maximums of 20 years under 18 U.S.C. § 1343. The Chan brothers received 24 and 12 months because they pled guilty and cooperated – but 22 fraudulent loan applications across multiple family businesses created overwhelming evidence of systematic fraud.
Jonathan Ramaci, 60, of Mt. Pleasant was sentenced in February 2025 to one and a half years in federal prison after pleading guilty to wire fraud and filing a false income tax return. Evidence presented showed that Ramaci defrauded the Small Business Administration in his application and receipt of approximately $214,000 of fraudulent PPP and EIDL loans authorized pursuant to the CARES Act. For the fraudulent EIDL loans, Ramaci falsely represented to the SBA revenue and costs of goods sold for the businesses he was applying for. False representations of revenue on EIDL applications are easily detected when cross-referenced against tax returns – Ramaci also pled guilty to filing a false income tax return, which means his fraudulent EIDL application revenue figures didn’t match his fraudulent tax returns, and neither matched his actual business revenue.
In June 2024, five of eight individuals who were charged for their role in a COVID-19 loan fraud scheme were sentenced. Between the eight individuals charged, three EIDL advances and 12 PPP loans were funded by the SBA or their approved third-party lenders for a total of $295,841.00 in loans. The sentenced individuals included Anthony Harley, 40, of North Charleston, sentenced to two years after pleading guilty to wire fraud. Benjamin Blue, 42, of Summerville, sentenced to one year and one day after pleading guilty to wire fraud. Sheniqua Mitchell, 37, of North Charleston, sentenced to 33 months after pleading guilty to wire fraud. Roberta Harley, 61, of North Charleston, received a time-served sentence after pleading guilty to conspiracy. This case demonstrates how EIDL and PPP fraud often involves multiple conspirators working together to submit fraudulent applications. When federal agents identify one fraudulent application, they investigate all related applications and identify co-conspirators. Conspiracy to commit wire fraud carries the same 20-year statutory maximum as wire fraud itself.
EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships. Ramaci falsely represented revenue and costs of goods sold for his businesses. Those figures were compared to his tax returns – which were also fraudulent – creating multiple layers of fraud. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Charleston, FBI handles EIDL investigations, often working with IRS Criminal Investigation when tax fraud is also involved.
Bank Secrecy Act reports trigger investigations. The Chan brothers applied for 22 fraudulent PPP and EIDL loans across multiple family businesses and restaurant entities. When one business receives multiple loans, or when multiple related businesses receive loans and funds flow to common accounts, banks file Suspicious Activity Reports. Federal agents subpoena bank records and trace every dollar. If EIDL funds went to personal expenses or non-business uses instead of working capital for pandemic economic injury – that’s wire fraud when you certified business use on the application. The Chan brothers’ restaurant operations – with 22 separate loan applications for family-controlled entities – created obvious patterns of fraud when agents analyzed fund flows across all accounts.
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. William and Siu Chan received 24 months for $2.5 million fraud with guilty plea and cooperation. Ka Ho Chan received 12 months for lesser role. Ramaci received 18 months for $214,000 fraud with guilty plea. The Lowcountry five received sentences ranging from time served to 33 months for $295,841 total fraud – Mitchell’s 33-month sentence suggests she had a larger role or less cooperation than the others.
Restitution is mandatory – you must repay the full EIDL amount plus interest and penalties. This federal debt survives bankruptcy. The Chan brothers owe $1,268,386.50 jointly. Ramaci owes approximately $214,000. The Lowcountry five owe $295,841 jointly. Probation terms after prison: 3 years supervised release, cannot start/manage a business without permission, continuous financial monitoring. The Chan brothers face 3 years of supervised release after their 24-month and 12-month prison sentences. During supervised release, they cannot operate their restaurant businesses without federal permission.
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 tax returns, multiple related applications across family businesses – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. William and Siu Chan pled guilty and received 24 months for $2.5 million fraud. If they had gone to trial and been convicted, they would have faced 7-15 years in prison for the same conduct.
Timeline: From initial SBA contact to indictment typically runs 6-18 months. District of South Carolina prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, applications for all related businesses, witness statements. The mistake Charleston business owners make: responding to initial SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have overstated revenue” or “my family helped with applications” become admissions of fraud and conspiracy. By the time they hire an attorney, they’ve confessed.
At Spodek Law Group – Todd Spodek has defended federal fraud cases in South Carolina for many, many, years. If the SBA contacted you about your EIDL loan – if federal agents asked to interview you – time matters. District of South Carolina prosecutes aggressively. Call 212-300-5196.
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