Orlando EIDL Loan Fraud Lawyers

Orlando EIDL Loan Fraud Lawyers

You received the EIDL loan in 2020 or 2021 – maybe $50,000, maybe $150,000. Now it’s 2025, and you got a letter from the SBA Office of Inspector General requesting bank statements, tax returns, business records. Or an FBI agent called wanting to ask “a few questions” about your application. Either way, your EIDL loan is under federal investigation in Orlando, and you’re terrified. You need to know what happens next – not what the statute says, but what actually happens to YOU in the next 30 to 180 days in Florida’s Middle District.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended federal fraud cases for over 40 years, and we understand that when SBA OIG or FBI contacts you about EIDL loans, you’re not looking for legal theory. You need the timeline you’re facing, the choices available to you right now, and realistic outcomes for people in your exact situation in Orlando.

You Got the Letter – What Happens in the Next 48-72 Hours

The SBA OIG letter looks official – requests for bank statements, payroll records, tax returns, proof of how you spent EIDL funds. They frame it as “voluntary cooperation,” give you maybe 10 to 30 days to respond. The FBI call sounds casual: an agent says they’re “just looking into” your application, asks if you can answer a few questions to “clear things up.” Both scenarios present the same critical choice, and you have about 48 to 72 hours to make it correctly. Talk to federal investigators yourself or hire an Orlando federal defense lawyer immediately. Most business owners think explaining will resolve it – they made honest mistakes during pandemic chaos, miscalculated their 2019 revenue, weren’t sure what counted as “economic injury.” That instinct is dangerous. Here’s what Orlando prosecutors know that you don’t: statements you make to investigators become evidence of intent to defraud.

Federal prosecutors in Orlando’s Middle District expect you to lawyer up. It’s not suspicious – it’s constitutional. Your Sixth Amendment right to counsel activates the moment government agents start asking questions that could incriminate you. They’ve charged 109 defendants with COVID fraud in the Middle District – PPP and EIDL combined – collectively accused of trying to defraud the government of over $96 million. They know the process. You should too.

The Investigation Timeline You’re Actually Facing in Orlando

Investigations don’t move fast. Month one through two: document review. The SBA OIG examines what you submitted on your EIDL application, comparing it to actual business records. Did your business exist in 2019? Did you report accurate gross revenue? Did you actually suffer “economic injury” from COVID? If your 2020 revenue increased, that’s a problem. Month two through six: analysis phase. EIDL investigations focus on economic injury and business operating expenses – different from PPP’s payroll focus. Red flags: claiming a business that didn’t exist in 2019, grossly inflating your 2019 revenue, spending EIDL funds on obviously personal expenses like luxury cars, vacations, personal real estate, gambling. EIDL loans were often larger than PPP – $150,000 to $500,000 – which means more money to trace. Month six through twelve: the decision. Does this case stay civil or go criminal? The SBA OIG makes a recommendation to the Department of Justice. If civil, you’ll face a demand for repayment. If criminal, your file goes to federal prosecutors in the Middle District. This is the window where having an Orlando lawyer who knows these prosecutors matters – presenting your case before criminal referral can sometimes keep the case civil. Once prosecutors receive the criminal referral, negotiating back to civil becomes nearly impossible. If it goes criminal, add another 6 to 12 months or more. Grand jury indictment. Arraignment in Orlando’s federal courthouse. Discovery. Plea negotiations. The statute of limitations gives them until 2030 or 2031 to charge you – Congress extended it to 10 years for COVID fraud. Orlando prosecutors have shown no signs of backing off in 2025. Not every SBA OIG investigation becomes a criminal case, and the distinction between civil and criminal tracks depends on factors you can influence if you act quickly. Civil cases involve government demands for repayment but no criminal charges – small discrepancies, honest errors, good-faith confusion about “economic injury” during a pandemic. You miscalculated your 2019 revenue, weren’t sure about employee counts, used funds for expenses you believed were business-related even if prosecutors later disagree. If you used the loan mostly correctly – rent, utilities, working capital – but your application had mistakes, that argues for civil resolution. Criminal cases involve intentional fraud: claiming a business that didn’t exist, fabricating 2019 tax returns, listing fake employees, misuse of funds for obviously personal expenses like luxury cars, vacations, gambling. Angela Chew from Leesburg was convicted in September 2024 for her role in an EIDL fraud conspiracy involving multiple fake businesses. Your Orlando lawyer’s role in this phase is presenting your case to the SBA OIG before criminal referral – showing contemporaneous confusion, emails asking your accountant questions, documentation of actual business struggles, evidence you tried to comply. That window exists, but it closes. Once prosecutors in the Middle District receive the criminal referral, they’re not sending it back. The cooperation paradox: “I wasn’t sure if I calculated revenue correctly” becomes “I knew my revenue was wrong but submitted it anyway,” which is why lawyers filter communication.

If You’re Charged – What 2025 Sentencing Looks Like

If you’re indicted, here’s what matters: real numbers from 2024 to 2025 cases, not the “up to 30 years” abstractions. Wire fraud and bank fraud carry theoretical maximums of 30 years in prison and $1 million in fines. That’s the government’s threat. Here’s the reality for Orlando defendants.

Sentencing in 2024 and 2025 is about 40% longer than it was in 2021 or 2022 for identical conduct. The Department of Justice made COVID fraud a priority, and federal judges responded. Where a first-time offender with a $50,000 EIDL loan might have received probation in 2021, that same person now faces 12 to 18 months in federal prison – if they plead guilty and show remorse. Larger EIDL loans ($150,000 to $300,000) result in 2 to 5 years even with cooperation. The Middle District of Florida has convicted 74 of 109 defendants charged with COVID fraud. Trials aren’t going well: only about 10% of federal fraud defendants win at trial. Factors that move your sentence: loan amount, how you used the funds, whether you cooperated or obstructed, whether you showed remorse, whether you’ve repaid the money.

About 90% of federal fraud defendants plead guilty because the trial penalty is real. If you plead guilty, accept responsibility, cooperate, you might get the low end of the guideline range. If you go to trial and lose, you get the high end – or higher. Restitution is always ordered. Even if you serve prison time, you must repay the full loan amount plus interest.

Orlando federal prosecutors remain exceptionally aggressive in pursuing EIDL fraud in 2025. The 10-year statute of limitations means they can charge cases through 2030 or 2031. If SBA OIG or FBI contacted you about your EIDL loan, you need an Orlando federal defense lawyer who knows Middle District prosecutors within days. At Spodek Law Group, we’ve defended federal fraud cases for over 40 years. Todd Spodek represented Anna Delvey when everyone said the case was unwinnable. Many, many, years of experience with federal prosecutors. Call 212-300-5196.