Bexar County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. San Antonio business owner, Bexar County address, scrambling to keep employees paid while the world fell apart. The government was handing out money to anyone who could fill out an application. You filled it out. You got the funds. Maybe you used them exactly as intended. Maybe you didn't. Years passed. You assumed the government had moved on to other things.
The federal government hasn't forgotten.
The Western District of Texas turned PPP fraud prosecution into a conviction machine - and Bexar County business owners are the raw material. Congress extended the statute of limitations to 10 years in August 2022 - retroactively. That 2020 loan you thought was ancient history? Its prosecutable until 2030. The sentences being handed down in 2024 and 2025 are approximately 40% longer than identical conduct from 2021. This isn't slowing down. Its accelerating.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Bexar County and throughout the Western District of Texas. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, if your accountant called with questions you don't want to answer - this article explains exactly what you're facing. And what options might still exist.
The Western District of Texas Is Still Hunting
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most business owners in San Antonio never heard about it.
It extended the statute of limitations from 5 years to 10 years - retroactively. Not just for new loans. For loans that were already issued. For the loan you got in April 2020 when nobody knew what was happening.
That means your 2020 PPP loan is prosecutable until 2030. A 2021 loan until 2031. The government gave itself a full decade to come for you.
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%)
And heres the part that should worry you most. 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 machine is getting faster.
Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer then defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency is completley over. Federal judges in the Western District of Texas include prison time in nearly every PPP fraud sentencing now - regardless of the amount involved.
What San Antonio Prosecutions Look Like
The Western District of Texas handles PPP prosecutions at the John H. Wood Jr. U.S. Courthouse in downtown San Antonio. Bexar County residents face prosecution in this courthouse. So do business owners from New Braunfels, the Hill Country, everywhere the Western District covers.
Michael Fullerton: 286 months. Nearly 24 years in federal prison.
His wife Tiffany: 108 months. Nine years.
A Georgetown couple - just north of San Antonio, same federal district - destroyed for a $3.5 million PPP fraud scheme. They used the funds for a marijuana dispensary in Oklahoma, luxury watches, a boat, a motor home. Combined sentence: 32 years federal prison. Plus they were ordered to pay $3,027,526.11 in restitution.
Antonio Garcia, San Antonio construction contractor: 51 months federal prison. Over four years. He submitted PPP applications with fabricated payroll records. Used the funds for vehicles, real estate, jewelry. The government wanted every dollar back plus his freedom.
Rachel Johnson: 42 months for $875,000. She created shell companies, submitted applications with inflated employee counts and false payroll figures.
James Michael Bergeron - right here in San Antonio - is facing an 11-count indictment for wire fraud and money laundering. Hes accused of misrepresenting employee numbers and payroll amounts across multiple entities, securing millions in PPP and Restaurant Revitalization Fund money. His case is still pending.
These are your neighbors. Your competitors. Business owners who made decisions in 2020 that are now destroying there lives in 2025.
The Window That Changes Everything
Heres what most people dont understand about PPP investigations.
Theres a window. Typically six to twelve months. Between when the SBA OIG flags your loan and when the case gets referred to the FBI for criminal investigation.
During this window, civil resolution is sometimes possible. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant. But not federal prison either.
Once the FBI takes over, that window closes. Permanently.
Christopher Phillips was a former FBI employee from Schertz - thats Bexar County. He got caught submitting a fraudulent PPP application for $37,500. Used his FBI credentials to verify his identity. Lost $25,000 of the loan money in a personal trading account.
His sentence: 3 months home confinement. Five years probation. $39,771 restitution.
Antonio Garcia got 51 months. Same courthouse. What was the difference?
Phillips intervened early. Had counsel from the start. Garcia waited, talked to investigators without lawyers, let the window close. The timing mattered more then almost anything else.
But heres the trap. The repayment 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 dosent fix it - it can actualy strengthen the governments case against you.
This is complicated. The timing matters enormously. Whether to repay, when to repay, how to structure any resolution - these decisions require counsel who understands how the Western District of Texas handles these cases.
Before They Show Up
The single most important rule:
Never agree to discuss a potential PPP fraud case with a federal agent without a lawyer present.
Sounds obvious. But there have been several recent cases in the Western District where people who decided to talk to investigators without counsel ended up charged with obstruction or making false statements to federal agents - 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:
- Dont destroy any documents. Document destruction becomes a seperate charge.
- Dont discuss the matter with others who may be involved. Those conversations can be used against you.
- Dont make voluntary payments to the SBA without counsel. This can become consciousness of guilt evidence.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek understands how the Western District of Texas prosecutes PPP fraud. He knows the difference between OIG-stage investigations where civil resolution might still be possible, and FBI-stage investigations where criminal defense is the only priority.
When Your Ready
If your in Bexar County - or anywhere in the Western District of Texas - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand.
The consultation is free. Theirs 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 in the Western District - not best-case fantasies, but actual possibilities based on how these cases play out at the John H. Wood Jr. Courthouse?
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 the window between OIG and FBI doesn't stay open forever.
The earlier you have counsel, the more leverage exists.
Were here when you need us.
