Billings EIDL Loan Fraud Lawyers

Billings EIDL Loan Fraud Lawyers

The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents contacted you in Billings asking about your Economic Injury Disaster Loan application. You’re in Montana. Chief U.S. District Judge Brian M. Morris just convicted a Great Falls man in September 2025 for EIDL fraud – he falsely claimed $249,000 in gross revenues and lied about felony convictions. The SBA wired him $99,900. He spent the majority on personal expenses. His sentencing is scheduled for January 28, 2026. The District of Montana prosecutes aggressively.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended federal EIDL fraud cases in Montana for over 40 years. We know how District of Montana prosecutors charge pandemic loan fraud and what outcomes you’re facing.

The federal government approved EIDL loans in 2020 with minimal verification. Now in 2025, they’re prosecuting Montana business owners. A Shepherd restaurant owner – just outside Billings – was sentenced to probation and ordered to pay restitution after using $75,000 in EIDL funds to buy vintage vehicles instead of business expenses. A Clinton business owner pled guilty to wire fraud and money laundering after spending over $160,000 in EIDL funds on a Harley-Davidson motorcycle, ATV, and camper. Here’s what happens in YOUR situation.

Great Falls Man Convicted in September 2025

Raymond Marcellous Blair, 45, of Great Falls was found guilty by Chief U.S. District Judge Brian M. Morris in September 2025 of one count of wire fraud and two counts of money laundering. Blair applied for an Economic Injury Disaster Loan from the Small Business Administration in 2020, falsely claiming his business had gross revenues of $249,000. He also falsely claimed he had not been convicted of a felony or placed on probation within the last five years – in truth, he was convicted of aggravated assault in 2011 and of failing to register as a violent offender in 2017, and was on probation in 2020 when he applied. The SBA approved his EIDL loan application and wired $99,900 into his bank account on September 1, 2020. Blair twice transferred more than $10,000 out of that account and spent the majority of the loan proceeds on personal expenses. Wire fraud convictions carry statutory maximums of 20 years under 18 U.S.C. § 1343. Money laundering convictions carry statutory maximums of 20 years under 18 U.S.C. § 1956. Blair faces significant federal prison time at his January 2026 sentencing.

Damon Alexander Wahl, 46, of Clinton, who operates Wahl’s Roofing LLC, pled guilty in April 2023 to wire fraud and money laundering. Wahl received a $405,400 loan from the SBA’s EIDL program in July 2021. He used at least $160,000 for personal expenses, including $13,900 for an ATV, more than $21,000 for a new Harley-Davidson motorcycle, and $14,700 for a camper. He faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervised release. Michael Eugene Bolte, 70, of Shepherd – a Billings suburb – owns the Feedlot Steakhouse. He was sentenced to three years of probation and ordered to pay restitution after pleading guilty to theft of government money for using approximately $75,000 in EIDL funds to buy vintage vehicles instead of using it for his business.

How EIDL Fraud Gets Detected in Montana

EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships, criminal background checks. Blair falsely claimed $249,000 in revenues and lied about felony convictions. Computer systems flagged both discrepancies. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Montana, FBI handles EIDL investigations, often working with IRS Criminal Investigation.

Bank Secrecy Act reports trigger investigations. When you used EIDL funds for luxury personal purchases – motorcycles, ATVs, campers like Wahl, vintage vehicles like Bolte – your bank filed Suspicious Activity Reports. Blair transferred more than $10,000 out of his EIDL account twice. Each transfer over $10,000 generates automatic reporting to federal law enforcement. Those reports led directly to his investigation. Personal spending patterns flag accounts. Federal agents subpoena bank records and trace every dollar. If funds went to personal expenses instead of business operations – that’s wire fraud when you certified business use on the application.

District of Montana Sentencing

EIDL fraud sentencing follows the federal guidelines based on loss amount. Under $100,000 with cooperation: 6-18 months. $100,000-$500,000: 2-5 years. Over $500,000: 5-10 years with plea, 10-20+ years if convicted at trial. Blair was convicted after trial with $99,900 in losses plus money laundering – likely faces 3-5 years when sentenced in January 2026. Wahl pled guilty to wire fraud and money laundering for $405,400 in losses – faces up to 20 years statutory maximum, likely 3-7 years with plea. Bolte received probation for $75,000 theft with guilty plea and cooperation.

Restitution is mandatory – you must repay the full EIDL amount plus interest. This federal debt survives bankruptcy. Blair owes $99,900. Wahl owes $405,400. Bolte owes $75,000. Probation terms after prison: 3-5 years supervised release, cannot start/manage a business without permission, continuous financial monitoring. The critical decision: plea deal versus trial. Federal EIDL fraud cases have 97%+ conviction rates at trial. Documentary evidence – your application, your bank records, your IRS filings – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. Blair went to trial and faces significantly more prison time than Wahl who pled guilty for a larger fraud amount.

Timeline: From initial SBA contact to indictment typically runs 6-18 months. District of Montana prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, background check results, witness statements. The mistake Montana business owners make: responding to initial SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have used some funds for personal items” become admissions of fraud. By the time they hire an attorney, they’ve confessed.

At Spodek Law Group – Todd Spodek has defended federal fraud cases for many, many, years. If the SBA contacted you about your EIDL loan – if federal agents asked to interview you – time matters. District of Montana prosecutes aggressively. Call 212-300-5196.