Baltimore PPP Loan Fraud Lawyers
You got a PPP loan during the pandemic. Maybe it was 2020 when everything shut down. Maybe 2021 when the second round came through. You applied, got approved, used the funds, maybe even got the loan forgiven. Years have passed. You've moved on with your life. You assumed the government moved on too.
It hasn't moved on. And Maryland is ground zero.
The federal government turned PPP loan fraud prosecution into an assembly line - and Baltimore sits at the center of one of the most aggressive enforcement districts in the country. The District of Maryland is home to one of only five DOJ Strike Forces nationwide dedicated to COVID-19 fraud prosecution. The average sentence here is 31 months - five months longer than the national average. 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 Baltimore and throughout the District of Maryland. If federal agents have contacted you, if you've received a letter from the SBA Office of Inspector General, if your accountant or business partner is suddenly cooperating with prosecutors - this article explains what you're facing and what options still exist.
Maryland Has a Strike Force - And Baltimore Is Ground Zero
Most people don't know this exists.
The Department of Justice established dedicated Strike Forces to prosecute pandemic fraud. Not in every state. Not even in most states. Just five locations across the entire country. Maryland is one of them. The District of Maryland Strike Force operates out of Baltimore and uses prosecutor-led, data analyst-driven teams specifically designed to identify and pursue PPP fraud. These aren't overworked AUSAs juggling a hundred different case types. These are specialists. This is what they do every day.
And they have time.
In August 2022, Congress extended the statute of limitations for PPP fraud from 5 years to 10 years - retroactively. If you received a PPP loan in 2020, federal prosecutors have until 2030 to bring charges. If you got one in 2021, they have until 2031. The government gave itself a full decade to come for you. And heres the part that catches people: the clock dosent run from when you submitted the application. It runs from the last fraudulent act. If you submitted a forgiveness application in 2021, that's a seperate offense with its own 10-year clock. If you made statements to investigators in 2023, thats another offense.
The statute of limitations runs from the LAST act, not the first.
The SBA Office of Inspector General has recieved more than 250,000 hotline complaints since the pandemic began. From those, there data analytics team identified over 95,000 actionable leads. In August 2024, SBA officials disclosed that approximately 54,000 PPP loans had been referred to the OIG for likely fraud. Another 77,000 were escalated internally for additional review. That's over 130,000 loans that the government has already flagged as problematic. The Strike Force exists to work through that list.
So the government has both the tools and the time. But here's what makes it worse:
The Sentencing Cliff Is Real
Early in the pandemic, some federal judges showed leniency. The economic chaos. The desperation. The confusing guidance from the SBA about what qualified and what didnt. Some judges gave probation or minimal prison time for smaller PPP frauds.
Those days are completley over.
Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Same crime. Same amount. 40% more prison time. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved. The District of Maryland is even more agressive: the average sentence here is 31 months, compared to 26 months nationally.
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 have been found guilty (82% conviction rate)
- 1,741 recieved prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years
More then 440 defendants were ordered to pay $1 million or more in restitution. Some restitution amounts reached as high as $71 million.
This isnt slowing down. It's accelerating. 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 their not showing mercy just because its been a few years.
Every month you wait moves you closer to the sentencing cliff, not away from it.
Those are national numbers. Here's what's happening in Baltimore specifically:
Baltimore Cases That Ended in Prison
Nichelle Henson was a Baltimore City Council candidate. She applied for EIDL and PPP loans totaling $1,694,451 for businesses that existed only on paper. She used the funds for cosmetic surgery, extensive home renovations, paying a year's rent on her personal residence, and to create a cryptocurrency she called "Subina Coin." In 2025, a federal jury convicted her of bank fraud and false statements. She faces up to 30 years in federal prison on each bank fraud count. Her sentencing is scheduled for August 5, 2025.
She went to trial.
David Epstein of Owings Mills was different. His company, PEI Staffing, submitted false PPP loan applications seeking approximately $1.3 million. But Epstein pleaded guilty. In May 2025, Judge Richard D. Bennett sentenced him to one year and one day in federal prison, plus 12 months of home confinement. Not great - but not decades either.
He cooperated.
Harold Dotson was an accountant in Gaithersburg. He used his expertise to prepare numerous false EIDL and PPP applications for purported businesses that didnt exist in any legitimate capacity. The total fraud: $24 million. His sentence: 3 years in federal prison, plus $24,807,432 in restitution. His co-conspirator, Sary, received 7 years.
Edward McCorkle of Baltimore County obtained $523,700 in fraudulent CARES Act loans while attempting to get nearly $950,000 total. He used the funds for real estate in Baltimore City, large cash withdrawals, and personal expenses. He pleaded guilty to wire fraud. His sentencing is scheduled for January 27, 2026.
Rudolph Brooks of Cheltenham got $3.5 million in fraudulent PPP loans. He bought a residence, a luxury vehicle, and made retail and restaurant purchases. His sentence: 18 months in federal prison.
Notice the pattern. Henson went to trial and faces decades. Epstein and Brooks pleaded guilty and got months, not years. The difference between ending up like Henson or like Epstein often comes down to one thing: when you got counsel involved and what you did before the FBI showed up at your door.
So what determines whether you end up like Henson or like Epstein?
What to Do Before the FBI Shows Up
The single most important rule:
Never agree to discuss a potential PPP fraud case with a federal agent without a lawyer present.
This sounds obvious. But Nichelle Henson was convicted of both bank fraud AND false statements to federal agents. Those are seperate charges. False statements under 18 U.S.C. § 1001 carries up to 5 years in federal prison. Every word you say to investigators becomes evidence. The agents seem friendly. Cooperative. Their not on your side.
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 completley disappears once criminal charges are filed. A skilled defense attorney may be able to negotiate a civil disposition during this period. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either.
But the window closes. Once the FBI has the case, your in criminal territory. The options narrow dramatically. The difference between David Epstein's one year and Nichelle Henson's potential decades often comes down to how early counsel got involved and what decisions were made before the situation escalated.
This is complicated. The timing matters enormously. Whether to talk, what to say, whether to repay, how to structure any resolution - these decisions require counsel who understands how federal prosecutors in the District of Maryland actually think.
Todd Spodek has handled PPP fraud cases in federal court. He understands the difference between OIG-stage investigations where civil resolution may still be possible, and FBI-stage investigations where criminal defense is the only priority.
When You're Ready
If you're in Baltimore - or anywhere in Maryland - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options exist.
The consultation is free. There's 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 District of Maryland?
Call us at 212-300-5196. The Strike Force is working through their list. 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.
We're here when you need us.
