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PPP fraud defense in Oregon – Andrew Lloyd stole $3.5M, his Tesla stock grew to $18M, and he forfeited all of it.
The Federal Government Is Still Coming
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. It extended the statute of limitations from 5 years to 10 years – retroactively. That means a PPP loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. The government gave itself a full decade to come for you.
The COVID-19 Fraud Enforcement Task Force coordinates investigations across FBI, IRS Criminal Investigation, SBA OIG, Secret Service, and a dozen other agencies. They have strike forces dedicated specifically to pandemic relief fraud. The assembly line is running at full capacity.
The Prosecution Machine by the Numbers
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants charged with pandemic relief fraud
- 2,532 defendants found guilty (82%)
- 1,741 received prison time (81% of those convicted)
- 2,008 ordered to pay restitution (94%)
Why 2025 Sentences Are 40% Longer
Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing – regardless of the amount involved.
One PPP application can trigger multiple federal charges:
- Wire Fraud (18 U.S.C. 1343) – 20-30 years
- Bank Fraud (18 U.S.C. 1344) – 30 years
- False Statements to SBA (18 U.S.C. 1014) – 30 years
- Money Laundering (18 U.S.C. 1956) – 20 years
- Aggravated Identity Theft (18 U.S.C. 1028A) – mandatory +2 years consecutive
The Window That Changes Everything
There’s a window – typically six to twelve months – between when the SBA OIG flags a loan and when the case gets referred to the FBI for criminal investigation. During this window, there is leverage that completely disappears once criminal charges are filed.
During the OIG review stage, a skilled defense attorney may be able to negotiate a civil disposition. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either.
The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money doesn’t make it go away – it can actually strengthen the government’s case against you.
What to Do Right Now
The single most important rule: Never agree to discuss a potential PPP fraud case with a federal agent without a lawyer present.
If you’re under investigation or concerned you might be:
- Don’t destroy any documents. Document destruction can become a separate charge.
- Don’t discuss the matter with others who may be involved.
- Don’t make voluntary payments to the SBA without counsel.
- Contact a federal defense attorney immediately.
Todd Spodek has handled PPP fraud cases in federal court. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority.
Reduction in pretrial jail population since NJ bail reform implementation.
Source: NJ Judiciary Annual ReportApproval rate for properly filed expungement petitions in NJ.
Source: NJ Courts Statistical ReportCommon Mistakes to Avoid
Actually Stay Silent
Most people know they have the right to remain silent but still talk to police. Anything you say can and will be used against you. Politely decline to answer questions until your attorney is present.
Bail Conditions Are Enforceable
Violating bail conditions, even minor ones, can result in immediate re-arrest and make it much harder to obtain bail again. Follow every condition to the letter.
Proven Track Record
Recent Case Results
*Results may vary depending on your particular facts and legal circumstances.
SEE ALL CASE RESULTSWhat Our Clients Say
"When the federal government came after me, Todd and his team were the only ones who made me feel like I had a real chance. They understood the system inside and out and got my case dismissed."— Michael T., Federal Defense Client MORE REVIEWS
Lead Attorney & Founder
Todd Spodek
Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience to every case.
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Frequently Asked Questions
New Jersey reformed its bail system in 2017. Instead of a cash-based system, judges now use a Public Safety Assessment (PSA) to determine whether a defendant should be released pretrial. Most defendants are released with conditions, while those deemed high-risk may be detained. An experienced attorney can argue for favorable release conditions at your detention hearing.
No. You have the constitutional right to remain silent and to have an attorney present during questioning. Anything you say to police can be used against you in court. Politely invoke your rights by saying "I want to speak with my attorney before answering any questions." This cannot be held against you.
Attorney fees vary based on the complexity of the case, the charges involved, and whether the case goes to trial. At Spodek Law Group, we offer transparent pricing and flexible payment plans. We provide a free initial consultation to discuss your case and give you an honest assessment of costs. Investing in quality representation often saves far more in the long run than choosing the cheapest option.
An arraignment is your first court appearance after being charged with a crime. The judge will read the charges against you, and you'll enter a plea (usually not guilty at this stage). The judge will also set bail or release conditions. Having an attorney at your arraignment is critical, as they can advocate for favorable bail terms and begin building your defense strategy from day one.
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