What Are PPP Fraud Conspiracy Charges? They’re Charging EVERYONE You Know With Federal Crimes!

What Are PPP Fraud Conspiracy Charges? They’re Charging EVERYONE You Know With Federal Crimes!

So your probably thinking conspiracy charges only apply if you ran some massive fraud ring with dozens of people.

Maybe you figure helping a friend with there application doesn’t count as conspiracy.

Or maybe your hoping the government only goes after the “mastermind” and leaves everyone else alone.

Look, we get it.

You don’t think of yourself as a criminal conspirator.

But here’s the absolutely terrifying truth – PPP fraud conspiracy charges under 18 U.S.C. § 371 and § 1349 are being used to prosecute EVERYONE!

EVERYONE who touched these loans!

From spouses to accountants to the person who just gave advice!

Just gave advice!

What Exactly Is Conspiracy?

Conspiracy means ANY agreement between two or more people to commit fraud – that’s IT! You don’t need some elaborate criminal organization. You don’t need written plans or secret meetings. If you and just ONE other person agreed to submit false PPP information, that’s conspiracy carrying 5 to 20 YEARS in federal prison!

The Department of Justice defines conspiracy as simply agreeing to commit a crime! Under 18 U.S.C. § 371, they only need to prove: (1) an agreement between two or more people to defraud the government, (2) you knowingly joined that agreement, and (3) someone took ANY step toward the fraud. That’s terrifyingly easy to prove!

Even THINKING about fraud with someone else becomes conspiracy! You and your business partner discussed inflating payroll numbers over coffee? Conspiracy! Your spouse suggested using a higher revenue figure? Conspiracy! Your accountant said “lots of people are doing it”? CONSPIRACY! The bar is shockingly low!

What’s the Difference Between § 371 and § 1349?

Section 371 is the general conspiracy statute with 5 YEARS maximum prison! This covers conspiracy to commit ANY federal crime or defraud the United States. For PPP fraud, this means agreeing to submit false applications, use fake documents, or misuse funds. Five years might sound “light” but it’s added ON TOP of other charges!

Section 1349 is the fraud-specific conspiracy statute with up to 20 YEARS! This one is BRUTAL because it doesn’t even require an “overt act” – just the agreement itself is enough! If the underlying fraud is wire fraud (almost always is), you face the SAME 20-year maximum as actually committing wire fraud!

The Legal Information Institute confirms § 1349 is actually EASIER for prosecutors! No overt act requirement means they don’t need to prove anyone actually DID anything. Just agreeing to commit fraud, even if you never followed through, equals up to 20 years in federal prison!

Who Gets Charged With Conspiracy?

EVERYONE who touched the fraudulent application faces conspiracy charges! The person who submitted it, whoever helped prepare it, anyone who provided false documents, whoever suggested the fraud, anyone who benefited – they’re ALL being charged as co-conspirators!

Spouses are being charged just for KNOWING about the fraud! Your wife knew you inflated numbers but didn’t stop you? Co-conspirator! Your husband benefited from PPP money paying household bills? Co-conspirator! Married couples are going to federal prison TOGETHER, leaving children orphaned!

Business partners, employees, accountants, even FRIENDS are being swept up! That employee who created fake payroll records? Charged! Your accountant who prepared supporting documents? Charged! Your friend who told you “everyone’s doing it”? They’re getting charged too! The net is MASSIVE!

What About Minor Involvement?

There’s NO such thing as “minor” involvement in conspiracy – everyone’s EQUALLY guilty! Under federal conspiracy law, every conspirator is responsible for the FULL amount of fraud. You helped your friend get $1 million while you got nothing? You’re sentenced based on the FULL million!

The U.S. Sentencing Commission treats all conspirators the same! Minor role adjustments exist but rarely apply. Judges assume if you joined the conspiracy, you’re fully responsible. The person who just gave advice gets the same sentence as the mastermind!

Being the “helper” makes you look WORSE to prosecutors! They see you as enabling massive fraud. You didn’t even benefit but still committed crimes? That shows criminal mindset! We’ve seen helpers get LONGER sentences than the people they helped!

Can They Prove Conspiracy?

Proving conspiracy is FRIGHTENINGLY easy for federal prosecutors! They don’t need written agreements, recorded conversations, or signed contracts. Circumstantial evidence is enough. Similar applications, shared IP addresses, connected bank accounts – all prove conspiracy!

Text messages and emails are DESTROYING defendants! “Hey, can you help me with my PPP application?” “Sure, just inflate your payroll.” BOOM – conspiracy proven! Every digital communication becomes evidence. Delete them? That’s obstruction adding more years!

The FBI uses cooperating witnesses to prove conspiracy! Your co-conspirator gets arrested first and immediately flips to save themselves. They wear wires, record calls, provide documents. Your trusted partner becomes the government’s star witness against you!

What’s an “Overt Act”?

An overt act is ANY step toward completing the fraud – and it doesn’t even have to be illegal! Googling “PPP loan requirements”? Overt act! Opening a business bank account? Overt act! Scheduling a meeting to discuss applications? Overt act! The threshold is incredibly low!

Only ONE conspirator needs to commit an overt act for ALL to be guilty! Your partner submitted the application while you did nothing else? Doesn’t matter – there overt act makes YOU guilty of conspiracy! You can literally do nothing beyond agreeing and still face 5 years!

Remember § 1349 doesn’t even REQUIRE an overt act! Just agreeing to commit fraud is enough for 20 years! This makes PPP fraud conspiracy cases virtually impossible to defend. The government doesn’t need to prove anyone actually DID anything!

What If We Failed?

Failure is IRRELEVANT – attempted fraud equals completed fraud! Your PPP application got rejected? Still conspiracy! Never actually submitted it? Still conspiracy! Changed your mind and withdrew the application? TOO LATE – conspiracy already occurred!

The government LOVES prosecuting failed conspiracies! It shows criminal intent without success. Juries have no sympathy for incompetent criminals. You tried to steal taxpayer money but failed? You’re still going to federal prison!

The Criminal Division actually seeks HARSHER sentences for failed attempts! They argue it shows determination to commit crimes despite obstacles. Your failure becomes evidence of persistent criminal behavior warranting longer imprisonment!

Can One Person Take All the Blame?

The “fall guy” strategy NEVER works and makes things worse! When one conspirator tries to take all blame, prosecutors see ongoing conspiracy and obstruction. Judges recognize this tactic immediately and punish EVERYONE more harshly!

Prosecutors demand cooperation against ALL conspirators! They won’t accept “I did it alone” when evidence shows multiple people involved. Refusing to implicate co-conspirators? No cooperation credit! Everyone gets maximum sentences!

Even if someone confesses to being the “mastermind,” others still face conspiracy charges! Leadership role might add enhancements for the organizer, but doesn’t absolve other conspirators. Everyone who agreed to the fraud remains criminally liable!

What About Withdrawal From Conspiracy?

Withdrawing from conspiracy is NEARLY IMPOSSIBLE under federal law! You must completely abandon the conspiracy AND take affirmative steps to defeat it. Just stopping participation isn’t enough. You basically have to report it to authorities!

By the time you realize it’s conspiracy, it’s too late to withdraw! Once the agreement is made and any overt act occurs, the crime is complete. You can’t un-ring that bell. Subsequent withdrawal might limit liability for future acts but doesn’t erase the conspiracy!

The U.S. Courts set an impossible standard for withdrawal! You must notify ALL co-conspirators of withdrawal, take steps to prevent the fraud, or report to law enforcement. Anything less and you remain fully liable for conspiracy charges!

How Do They Connect Everyone?

Digital forensics connects EVERYONE in modern conspiracy cases! IP addresses, email metadata, phone records, banking patterns – all create a digital web showing connections. Shared computers, similar documents, coordinated timing – technology reveals everything!

Financial analysis shows money flows between conspirators! Every Zelle payment, Venmo transfer, or cash withdrawal gets tracked. Money moving between conspirators proves the conspiracy. Even legitimate payments between friends become evidence!

Social media is DESTROYING conspiracy defendants! Facebook messages discussing PPP loans, Instagram posts showing new purchases, LinkedIn connections between co-defendants – social media provides the roadmap of conspiracy relationships!

CATASTROPHIC WARNING: PPP conspiracy charges = 5-20 YEARS for EVERYONE involved!
Spouses, partners, friends ALL being charged! Agreement alone = conspiracy!
Call 212-300-5196 IMMEDIATELY before someone flips on you!

Look, PPP fraud conspiracy charges are casting an incredibly wide net that’s capturing everyone remotely connected to fraudulent loans. The government doesn’t need to prove you were some criminal mastermind – just that you agreed with one other person to submit false information. That’s it. Five minutes of bad judgment becomes 5-20 years in federal prison.

What makes this especially dangerous is how easy conspiracy is to prove. Text messages, emails, financial transfers, even just similar application patterns prove conspiracy. One co-conspirator flips and testifies? Your convicted. The first person arrested usually cooperates, meaning the last person holding out faces the worst consequences.

The scope is staggering – spouses, business partners, employees, accountants, friends, family members – anyone who participated, assisted, or even just knew about the fraud faces conspiracy charges. Everyone is equally liable for the full fraud amount. The helper faces the same sentence as the organizer. Don’t wait for federal agents to arrest your co-conspirators first. Call us immediately at 212-300-5196 because in conspiracy cases, timing is everything!