Baltimore PPP Fraud Defense Lawyers

Baltimore PPP Fraud Defense Lawyers

So your probably freaking out right now because the feds are investigating your PPP loan. Maybe you got one of those scary letters from the SBA asking for documents. Or worse – maybe FBI agents showed up at your door asking questions about that loan application from 2020. Look, I get it. Your scared. And honestly? You should be. Because Baltimore doesnt mess around when it comes to pandemic fraud.

What Your Really Up Against in Baltimore

Let me tell you whats really happening here. Maryland has this thing called a COVID-19 fraud strike force. Its basically like a super team of federal prosecutors and FBI agents who do nothing but hunt down PPP and EIDL fraud cases. All day, every day. And Baltimore – were one of only five citys in the entire country that has one of these strike forces. That means there putting way more resources into catching people than other places.

The numbers are insane. The Baltimore-Washington area had over $500 million – thats million with an M – in potentially fraudulent loan applications. So yeah, the feds are taking this really, really seriously. Like, people are going to federal prison for years over this stuff.

Recent Cases Thatll Make Your Stomach Drop

Want to know how bad it can get? Let me tell you about some recent cases that’ll make your stomach drop:

• Nichelle Henson – She was running for Baltimore city council, had her whole political campaign going, seemed like a respectable person. Now shes looking at 30 years in federal prison. THIRTY YEARS! All because she allegedly got $1.7 million in loans she shouldnt of gotten. Can you imagine spending the next three decades behind bars for something you did during the pandemic?
• David Epstein from Owings Mills – He got what they call a split sentence – one year in actual federal prison, then another year stuck at home with an ankle moniter. That was for $1.3 million in false applications. A whole year of his life gone, then another year where he cant even leave his house without permission.
• Edward McCorkle from Baltimore County – He pled guilty to getting $523,700. His sentencings coming up soon.
• Andra Thompson from Silver Spring – She got a year and a day for conspiracy.

And there catching everyone. The feds dont care who you are or what your story is.

Why Baltimore is Different (And Worse)

Heres what makes Baltimore different from other places, and why your in more trouble here than you would be somewhere else:

The Strike Force Advantage

In some citys, if you took like $50,000 or $75,000, they might just make you pay it back with some penalties and interest. Maybe a slap on the wrist, some civil fines, and everyone moves on. Not here. In Baltimore? That $50,000 gets you criminaly prosecuted. Federal charges. Your looking at actual prison time for amounts that other districts would handle civily.

You know why? Because of that strike force I mentioned. They have:

• The time to go after everyone
• The resources to prosecute small cases
• The mandate to send a message

Even the small fish. Especialy the small fish, actually, because they want to send a message.

Lightning Fast Prosecution

The strike force works fast too. Really, really fast. Normal federal investigations – like if you were being investigated for tax fraud or something – those take 18 to 24 months before anything happens. You might not even know your under investigation for a year. But these strike force people? Theyll have you indicted in 6 months. Sometimes even quicker. Ive seen cases go from first contact to federal charges in 4 months.

Who There Going After

Theyve prosecuted everyone you can think of:

• Restaurant owners who said they had employees that didnt exist
• Construction companys that claimed they were paying workers way more than they actually were
• Doctors and healthcare providers who took the money and bought cars and houses with it instead of using it for there business
• Organized crime rings filing hundreds of fake applications using dead peoples identitys and stolen social security numbers

What Kind of Time Your Looking At

Now if your sitting there wondering what kind of time your looking at, let me break it down for you. And these arent just numbers Im making up – these are based on actual sentences being handed down right now in Baltimore federal court:

And heres the kicker – if your dumb enough to go to trial and loose? Add another 40% to whatever sentence you wouldve gotten with a plea deal. Its called the trial penalty and its very real. That woman Henson I mentioned? She went to trial and lost. Now instead of maybe getting 4 or 5 years with a plea, shes looking at 8 to 10 years. Maybe more.

Know Your Judges

The judges here in Baltimore federal court, they each have there own style:

Judge Matthew Maddox

Hes the one whos gonna sentence Henson – hes pretty strict. If you go to trial and loose, hes giving you the full sentence, no mercy. But if you plead guilty early and show your genuinely sorry? He might cut you some slack.

Judge Richard Bennett

He likes these split sentences where you do some time in actual prison then finish the rest at home with an ankle moniter. But dont think home confinement is easy – you cant leave except for:

• Work
• Medical appointments
• Religious services

No restaurants, no movies, no visiting friends. Its still punishment.

Those Excuses Wont Work

Look, I know what your thinking. You’ve got excuses:

• “My accountant told me it was ok.”
• “I didnt really understand the rules.”
• “The bank said everyone was doing it.”
• “I was desperate because of the pandemic.”

The strike force prosecutors? Theyve heard all of it. Every excuse you can think of, theyve heard it a thousand times from people who are now sitting in federal prison.

What Actually Matters to Prosecutors

These prosecutors, they know which defenses are real and which are BS. They can tell the difference between someone who made an honest mistake and someone who knew exactly what they were doing. And let me tell you – most people knew. The forms were pretty clear. You had to certify under penalty of perjury that everything was true.

Heres what actually matters to prosecutors when there deciding whether to charge you or what kind of plea to offer:

1. Did you pay back the money already? This is huge.
2. Can you cooperate against bigger fish? Like the person who helped you file the application or others who were involved?
3. How sophisticated was your fraud? Was it just inflating numbers a little or did you create an entire fake business?
4. What did you do with the money? Keep your business alive or buy yourself toys?

What You Need to Do RIGHT NOW

Your best bet? Get a lawyer right now. Like, yesterday wouldve been better. Try to deal with this before you get indicted, because once they file charges everything gets way harder:

• They’ll take your passport so you cant leave the country
• Theyll freeze your bank accounts
• Theyll restrict your travel even within the US
• Violate any of your pretrial conditions? Your going straight to jail until trial

The Discovery Nightmare

Discovery in these cases is overwhelming. The government will dump thousands of pages on you:

• Bank records showing every single transaction
• Your loan application
• Emails
• Text messages
• Accounting records

But sometimes buried in all those documents is your defense. Maybe theres evidence you really did qualify for some of the money. Maybe theres proof you relied on bad advice from a professional.

Location Matters

The District of Maryland has institutional knowledge about these cases now. The prosecutors know:

• Which banks were sloppy with there PPP procedures
• Which loan brokers were running fraud mills versus legitimate businesses
• Which accounting firms were giving criminal advice versus just being negligent

And the judges have seen hundreds of these cases now, so they know all the patterns.

If your case is in Greenbelt, thats different than if its in Baltimore. Greenbelt handles more DC-area businesses, lots of government contractors who have security clearances to worry about. Baltimore courthouse handles more city businesses, where judges might be more sympathetic to how the pandemic crushed small operations.

The Bottom Line

Look, Im not gonna lie to you. This is serious. People are going to federal prison. But with the right lawyer who knows the system, knows these prosecutors, knows these judges – you can get through this. Maybe avoid charges entirely if you act fast enough. Maybe get a plea deal that keeps you out of prison. Maybe at least minimize the damage.

Get Help Now

Spodek Law Group has been defending federal cases for decades. We know:

• Marylands strike force
• These prosecutors personally
• What arguments work with these specific judges
• How to negotiate with the strike force before charges get filed

Call us at 212-300-5196

Were available 24/7 because we know the feds dont sleep and neither do we when our clients are in trouble. The sooner you call, the better your chances. Dont wait until its too late.