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So your probably thinking EIDL fraud isn’t as serious as PPP fraud since it was technically a loan you had to pay back anyway. Maybe you figure the penalties are lighter because EIDL wasn’t “free money” like PPP forgiveness. Or maybe your hoping the government focuses more on PPP cases and lets EIDL fraud slide. Look, we get it. You want to believe there’s a difference. But here’s the absolutely terrifying truth – EIDL fraud carries THIRTY YEARS maximum prison time, even MORE than PPP fraud, and prosecutors are sending people to federal prison for DECADES!
EIDL fraud can get you THIRTY YEARS in federal prison – more than most violent crimes! Under 18 U.S.C. § 1014, making false statements to the SBA for EIDL loans carries up to 30 years imprisonment. That’s not a typo – THIRTY YEARS of your life gone for lying on a disaster loan application!
The Department of Justice is getting BRUTAL sentences in 2025! Just this August, a California man got nearly 4 years for $12 million in EIDL fraud. A Washington State defendant got 2 years for a smaller amount. Camden, Maine fraudster facing 20 YEARS for just $51,666! The sentences keep getting HARSHER!
Wire fraud charges add another 20 YEARS on top! Every EIDL application submitted online is wire fraud under 18 U.S.C. § 1343. Stack that with false statements and your looking at 50 YEARS maximum! Prosecutors charge multiple counts – each application, each certification, each draw. The years add up to LIFE sentences!
Federal sentencing guidelines create DEVASTATING minimums based on loss amounts! $100,000-$500,000 in EIDL fraud? Expect 2-4 years minimum. $500,000-$1 million? You’re looking at 4-7 years. Over $1 million? 5-10 years WITH a plea deal, 10-20+ years if you dare go to trial!
The “trial penalty” for EIDL fraud is SAVAGE! Reject a 5-year plea offer and get convicted at trial? Judges routinely impose 15-20 year sentences! The 85-90% conviction rate means your gambling decades of your life on a 10% chance. Those aren’t odds – that’s suicide!
Judges are adding BRUTAL enhancements that double sentences! Sophisticated means enhancement for using fake documents? Add 2 levels. Leadership role in conspiracy? Add 4 levels. Obstruction for destroying evidence? Add 2 more. Each level means 6-12 months MORE prison. Your 3-year guideline becomes 7 years!
Fines reach ONE MILLION DOLLARS per violation – and they charge multiple violations! Each false statement, each fraudulent certification, each draw request – all separate violations with separate million-dollar fines. A single EIDL application can generate $5 million in fines!
The Small Business Administration demands FULL restitution plus interest and penalties! Not just the loan amount – they add investigation costs, administrative expenses, lost opportunity costs. Your $200,000 EIDL loan becomes $400,000 in restitution. Can’t pay? That’s a probation violation sending you BACK to prison!
Asset forfeiture takes EVERYTHING you own! House, cars, bank accounts, retirement funds, business assets – all seized as fraud proceeds. Your family loses there home while your in prison. Children’s college funds disappear. Decades of savings vanish overnight. The government leaves you with NOTHING!
EIDL fraud is actually WORSE than PPP in many ways! EIDL has that 30-year maximum sentence versus 20 for PPP wire fraud alone. Prosecutors view EIDL fraud as stealing from legitimate disaster victims. Judges show LESS mercy because you took emergency funds meant for real businesses!
The Criminal Division created special EIDL strike forces that are MORE aggressive! They have dedicated prosecutors who ONLY handle EIDL cases. These aren’t overworked attorneys juggling multiple crime types – they’re specialists who know every angle and pursue maximum sentences!
EIDL fraud often involves MORE counts and charges! PPP was typically one application per business. But EIDL allowed multiple draws, loan increases, supplemental advances. Each transaction is a separate federal crime. We’ve seen defendants facing 50+ counts from one EIDL loan!
EIDL conspiracy charges add ANOTHER 5 years under 18 U.S.C. § 371! If you worked with ANYONE – accountant, friend, family member – that’s conspiracy. Even if they just helped with paperwork! The government loves conspiracy charges because they’re easier to prove than fraud!
Conspiracy makes EVERYONE equally guilty of the total amount! Your friend got $2 million while you only got $100,000? Doesn’t matter – your sentenced based on the FULL $2.1 million! The person who made the least money often gets the SAME sentence as the mastermind!
The IRS Criminal Investigation is finding EIDL fraud rings everywhere! They use AI to identify patterns – same IP addresses, similar applications, connected bank accounts. One person caught leads to dozens arrested. Your co-conspirators become witnesses against you to save themselves!
The statute of limitations is TEN YEARS for EIDL fraud! Congress extended it specifically for pandemic fraud. Loans from 2020 can be prosecuted until 2030! That sword hanging over your head for another FIVE YEARS! Every day wondering if today’s the day FBI agents knock!
Investigations are ACCELERATING in 2025, not slowing down! The government hired thousands of investigators specifically for pandemic fraud. New AI tools identify suspicious loans faster. What took years to investigate now takes weeks. The wave of prosecutions is getting BIGGER!
They’re going after EVERYONE, not just big cases! Initially they focused on million-dollar frauds. Now they’re prosecuting $50,000 EIDL frauds! The Camden man facing 20 years got just $51,666! No amount is too small anymore. If you got fraudulent EIDL money, your a target!
Paying back the loan does NOT prevent prosecution! Fraud is complete when you SUBMIT the false application, not when you keep the money! Plenty of people serving prison time who paid back every penny! Repayment might reduce sentencing but doesn’t eliminate charges!
Voluntary repayment before investigation MIGHT help slightly! Judges sometimes consider it as “acceptance of responsibility” worth a small sentence reduction. But if you repay AFTER being caught? That’s seen as trying to buy your way out and judges give NO credit!
The Fraud Section actually gets suspicious of sudden repayments! They see it as consciousness of guilt. Why repay a legitimate loan early? Your repayment triggers investigation into whether fraud occurred. Your attempt to fix things makes it WORSE!
Using someone else’s information for EIDL adds MANDATORY 2 years consecutive! If you used anyone’s SSN, EIN, or personal information without permission – even with there consent – that’s aggravated identity theft under 18 U.S.C. § 1028A. This 2 years runs AFTER your other sentence!
The mandatory minimum CANNOT be reduced! Judges have zero discretion. Cooperation doesn’t matter. First offense doesn’t matter. Good character doesn’t matter. You WILL serve 2 extra years on top of everything else. It’s automatic!
Multiple uses mean MULTIPLE 2-year sentences! Used 5 different identities for 5 EIDL applications? That’s 10 YEARS mandatory consecutive! We’ve seen defendants get 6 years for fraud plus 14 years for identity theft – 20 years total! The identity theft becomes worse than the underlying fraud!
Three years supervised release AFTER prison is standard! You think your free after serving time? WRONG! Supervised release is like probation on steroids. One violation sends you BACK to federal prison for the full 3 years!
Conditions of supervised release are CRUSHING! No accessing business loans ever again. Financial monitoring of every transaction. Monthly meetings with probation officers. Random home searches. Computer monitoring. Drug testing. Travel restrictions. Your “freedom” is barely freedom!
Restitution payments during supervised release are MANDATORY! Miss one payment? Violation! Can’t find a job to make payments? Violation! Payment arrives one day late? Violation! The system sets you up to fail and return to prison!
EIDL fraud conviction destroys EVERYTHING! Federal felony on your record forever. Can’t vote while incarcerated. Can’t own firearms ever. Can’t get federal contracts. Can’t get professional licenses. Most employers won’t hire you. Your life is effectively OVER!
Your family suffers for DECADES! Spouse becomes single parent while your in prison. Kids grow up visiting dad in federal facility. Family home seized for restitution. Retirement savings confiscated. Your crime destroys there futures too!
The Federal Bureau of Prisons sends you hundreds of miles from home! Forget weekly family visits – your lucky if they can afford to come once a year. Relationships crumble. Marriages end. Children become strangers. You lose everyone while locked away!
WARNING: EIDL fraud = 30 YEARS maximum federal prison!
Typical sentences 2-10 years! Million dollar fines! Total life destruction!
Call 212-300-5196 IMMEDIATELY for emergency EIDL fraud defense!
Look, EIDL fraud penalties are absolutely catastrophic – often WORSE than PPP fraud! That 30-year maximum sentence for false statements to the SBA is no joke. Prosecutors stack charges to threaten 50+ years. Judges impose harsh sentences even for “small” amounts under $100,000. The August 2025 California case – nearly 4 years for pandemic fraud – shows courts have zero sympathy.
With the 10-year statute of limitations, EIDL fraud from 2020 can haunt you until 2030. The government’s using AI to identify fraudulent loans faster than ever. They’re prosecuting everyone from $50,000 to $50 million. Paying it back doesn’t matter. Using false identities adds mandatory consecutive years. Supervised release extends punishment for years after prison.
Don’t think EIDL fraud is somehow “less serious” because it was a loan. The government sees it as stealing emergency disaster funds and they’re pursuing these cases aggressively. With an 85-90% conviction rate and devastating sentences, you need immediate expert defense. Call us at 212-300-5196 before federal agents knock on your door!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
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NJ CRIMINAL DEFENSE ATTORNEYS