Boise EIDL Loan Fraud Lawyers

Boise EIDL Loan Fraud Lawyers

The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents contacted you in Boise asking about your Economic Injury Disaster Loan application. You’re in Idaho. A Blackfoot man was just sentenced in December 2024 to prison and ordered to pay $927,000 in restitution for wire fraud related to EIDL loans. He submitted seven fraudulent EIDL applications using family members’ identities. Three were funded for $426,800. The District of Idaho established a dedicated COVID-19 Fraud Task Force – they’ve identified $7 million in pandemic fraud and prosecute aggressively.

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

The federal government approved EIDL loans in 2020 with minimal verification. Now in 2024-2025, they’re prosecuting Idaho business owners. A Meridian man was sentenced to 15 months in prison for fraudulently obtaining $300,000 in EIDLs. An Idaho business owner and two companies consented to an $850,000 judgment in October 2024 for using EIDL funds to pay personal debts and purchase real property instead of pandemic relief. Here’s what happens in YOUR situation.

Blackfoot Man Sentenced in December 2024

Craig Marlow, 41, of Blackfoot was sentenced on December 17, 2024 to two months in prison, three years of supervised release, and ordered to pay $927,000 in restitution for wire fraud related to EIDL loans. Marlow devised a scheme to defraud the Small Business Administration by submitting multiple fraudulent Economic Injury Disaster Loans. He submitted a fraudulent EIDL application for “Putnam Organic Farms” and submitted seven additional fraudulent EIDL applications using the personal identification of various family members. Three of those applications were funded by the SBA for an additional $426,800. Wire fraud convictions carry statutory maximums of 20 years under 18 U.S.C. § 1343. Marlow received 2 months in prison because he cooperated and pled guilty – but he owes nearly $1 million in restitution that survives bankruptcy.

Valentin Lapatskiy, 34, of Meridian – a Boise suburb – was sentenced on September 26, 2023 to 15 months in prison followed by 2 years of supervised release for wire fraud. Lapatskiy fraudulently obtained $300,000 in EIDLs by making materially false and fraudulent representations to the SBA in applications for two businesses. Fifteen months in prison for $300,000 in fraud shows District of Idaho judges impose prison sentences even for mid-level fraud amounts when defendants make false representations on applications.

$850,000 Judgment for EIDL Misuse

In October 2024, the U.S. Attorney’s Office for the District of Idaho announced that an Idaho business owner and two associated companies – Deuter Construction and Enlighten, LLC – consented to an $850,000 judgment to resolve allegations involving both PPP and EIDL program fraud. The defendant falsely claimed EIDL funds would be used as working capital to alleviate pandemic economic injury. Instead, the defendant used the funds to pay personal and business debts incurred before the pandemic – debts that had nothing to do with COVID-19 economic injury. EIDL funds were also used to purchase real property in Hailey, Idaho. The $850,000 judgment was brought under the qui tam or whistleblower provisions of the False Claims Act by Stuart Hallam. This case demonstrates that even if you avoid criminal charges, civil False Claims Act liability can result in judgments equal to or exceeding the original fraud amount.

Idaho’s COVID-19 Fraud Task Force

The District of Idaho COVID-19 Fraud Task Force was established by U.S. Attorney Josh Hurwit to investigate and prosecute pandemic relief fraud. The task force includes prosecutors from the U.S. Attorney’s Office, FBI agents, IRS Criminal Investigation agents, and SBA Office of Inspector General investigators working on pandemic fraud cases. By September 2023, the task force had identified $7 million in fraud related to pandemic relief programs. This means investigations move faster in Idaho than in districts without dedicated task forces. Prosecutors have more resources, more expertise, and institutional support for aggressive prosecution.

EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships. Marlow submitted seven fraudulent applications using family members’ identities – those identity mismatches flagged the fraud immediately. Bank Secrecy Act reports trigger investigations. When EIDL funds are used for purposes other than working capital – personal debt payments, real property purchases like the Hailey case, luxury items – banks file Suspicious Activity Reports. Those go directly to federal law enforcement. The Deuter case involved EIDL funds used to purchase real property – that transaction flagged the account.

District of Idaho Sentencing

EIDL fraud sentencing follows the federal guidelines based on loss amount. Under $100,000 with cooperation: 6-18 months. $100,000-$500,000: 2-4 years. $500,000-$1 million: 4-7 years. Over $1 million: 5-10 years with plea, 10-20+ years if convicted at trial. Marlow received 2 months for $927,000 in losses because he pled guilty early and cooperated fully. Lapatskiy received 15 months for $300,000 with guilty plea – he likely cooperated less or had aggravating factors.

Restitution is mandatory – you must repay the full EIDL amount plus interest. This federal debt survives bankruptcy. Marlow owes $927,000. The Deuter/Enlighten LLC entities agreed to an $850,000 judgment. Lapatskiy owes $300,000. 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. Both Marlow and Lapatskiy pled guilty and avoided trial – their sentences would have been 3-5 times longer if convicted at trial.

Timeline: From initial SBA contact to indictment typically runs 6-12 months in Idaho due to the dedicated task force. By the time you’re indicted, they have everything – bank records, IRS filings, identity verification records, witness statements. The mistake Idaho business owners make: responding to initial SBA audits without legal counsel. They think explaining will resolve it. Instead, statements like “I may have used funds for non-business expenses” 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 Idaho has a dedicated fraud task force. Call 212-300-5196.