Alameda County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone did - the government was practically throwing money at businesses during the pandemic. You filled out the application, got the funds, used them for payroll or whatever you told yourself they were for. Years passed. You moved on. You assumed the government had moved on too.
It hasn't.
The federal government turned PPP loan fraud prosecution into a Bay Area assembly line - and Alameda County is directly in the crosshairs. The Northern District of California has jurisdiction over Oakland, San Francisco, and all of Northern California. They're handing out sentences 40% longer than two years ago for identical conduct. Congress extended the statute of limitations to 10 years. That 2020 loan you thought was forgotten? It's prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Alameda County and throughout the Northern District of California. If you're under investigation, if you've received a letter from the SBA Office of Inspector General, or if federal agents have contacted you - this article explains exactly what you're facing and what options still exist.
Alameda County Is in the Federal Crosshairs
The Northern District of California covers Oakland, San Francisco, San Jose, and the entire Bay Area - including Alameda County. This is one of the busiest federal districts in the country for white-collar prosecution. Silicon Valley money flows through here. So do federal investigations.
Alameda County residents face prosecution in a district that's been activley pursuing PPP fraud cases since 2021. And there not slowing down. California has two federal districts - Central and Eastern - that jointly head one of three national COVID-19 Fraud Strike Force Teams. The Northern District feeds cases into this coordination. Enhanced resources. Federal agent support. Mandates to pursue pandemic fraud aggressivley.
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people missed what it actualy did. It extended the statute of limitations from 5 years to 10 years - retroactivley.
Every PPP loan from 2020 and 2021 is now subject to prosecution for a full decade.
A loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. The government gave itself a decade to come for you. And there using every day of it.
That would be managable if it stopped there. It doesn't. Look at who's actually going to prison.
The Cases That Should Wake You Up
Frank Mosley was a former IRS revenue officer. He also worked as a tax enforcement officer for the City of Oakland. He spent years inside the federal enforcement machine. He knew how investigations worked. He knew how cases got built. He knew what triggered audits and what flew under the radar.
He knew how federal enforcement worked better then almost anyone in the Bay Area.
He still got 30 months in federal prison.
Between July 2020 and September 2021, Mosley conspired with his brother and four others to submit fraudulent PPP loan applications. They created shell companies with zero employees and zero payroll. They submitted fake documents. They obtained more then $3 million in fraudulent loans. Mosley took a 15% cut for helping recruit others into the scheme. Judge Araceli Martinez-Olguin sentenced all six defendants.
Other Bay Area PPP fraud cases from the Northern District:
- Christina Burden (Oakland): 36 months federal prison for $1.1 million in PPP and EIDL fraud. She used a shell company called "Blessing Box Co LLC" and spent the money on luxury purchases. Judge Yvonne Gonzalez Rogers.
- Lane Jenkins (El Sobrante, Contra Costa County): $1.1 million fraud through A & L Investments LLC. Zero employees. Zero payroll. Charges pending.
- Reginald Mosley (Sacramento): Frank's brother. 30 months federal prison. He recruited acquaintances into the scheme after his brother showed him how.
If a former IRS officer with inside knowlege of federal enforcement couldn't avoid prosecution, what chance does anyone else have?
And these are just the local cases. Nationally, the numbers are even more alarming.
The Numbers Behind the Assembly Line
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 defendants have been found guilty (82%)
- 1,741 received prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years, with the majority between 1-5 years
More then 440 defendants were ordered to pay $1 million or more in restitution. Restitution amounts have reached as high as $71 million.
These aren't just numbers. This is an assembly line.
The median time from initial referral to indictment has decreased by 45% compared to 2022-2023. What used to take 8-12 months now takes 4-6 months. The government has gotten faster, more efficient, and more ruthless.
Defendants sentenced in 2024-2025 are receiving sentences aproximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency - judges who showed mercy because of economic chaos and confusing guidance - is completly over. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing. Regardless of amount.
One PPP application can trigger multiple federal charges:
Theoretical exposure from one PPP application can exceed 100 years. In practice, sentences don't reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations. They can make you plead to one count by threatening five.
So knowing that, what should you do? Most people do exactly the wrong thing.
The Window That Still Exists
Heres something most people don't understand about PPP investigations.
Theres 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 completley 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 difference between civil and criminal resolution is the difference between writing a check and going to prison.
But heres the trap.
Some people, panicking, decide to voluntarily repay the loan thinking it will make the problem go away. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money without counsel can actually strengthen the government's case against you. Your trying to fix the problem and instead your handing them another piece of evidence.
And talking to investigators? Even worse. There have been several recent cases where people who decided to talk to federal agents without a lawyer ended up being charged with obstruction or making false statements - in addition to the underlying PPP fraud. The agents seem friendly. Cooperative. There not on your side.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a seperate charge.
- Don't discuss the matter with others who may be involved. Those conversations can be used against you.
- Don't make voluntary payments to the SBA without counsel. This can be used as consciousness of guilt.
- Contact a federal defense attorney immediatley. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases in the Northern District of California. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority. The strategy is completley different depending on where you are in the process.
When Your Ready
If your in Alameda County - or anywhere in the Bay Area - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options exist.
The consultation is free. Theres no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage where civil resolution might be possible? Has it been referred to the FBI? What does the evidence look like? What are realistic outcomes - not best-case fantasies, but actual possibilities based on how these cases play out in the Northern District?
Call us at 212-300-5196. The statute of limitations runs until 2030 or 2031 depending on when you got the loan. The government has time. But once they move, things happen fast. The earlier you have counsel, the more leverage exists.
Don't wait until federal agents show up at your door.
Were here when you need us.
