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The SBA Office of Inspector General sent you a letter about your EIDL loan. Or federal agents contacted you in Boston asking about your Economic Injury Disaster Loan application. You’re in Massachusetts. A Hopkinton couple was just sentenced in June 2025 for EIDL fraud – they transferred $1 million in EIDL funds to their personal bank account and used over $825,000 for a down payment on a luxury home. They owe $1,625,872 in restitution. The husband received 1 year and 1 day in prison. The wife received time served plus 27 months supervised release. The District of Massachusetts 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 Massachusetts for over 40 years. We know how District of Massachusetts 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 Boston-area business owners. A North Andover businessman was sentenced in February 2025 to home detention and ordered to pay $179,090 in restitution after using EIDL funds to buy a diamond ring and remodel his home. A Lawrence man pled guilty and faces sentencing in May 2025 for fraudulently claiming $600,000 in gross revenue when it was only $16,989. Here’s what happens in YOUR situation.
Ronaldo and Adriana Solano of Hopkinton were indicted by a federal grand jury in March 2024. Between 2021 and 2022, they submitted a loan application on behalf of H&R Roofing & Siding Corp. to the SBA under the Economic Injury Disaster Loan program. After receiving the relief funds, they transferred $1 million of the funds to a personal bank account they shared. From that account, they used more than $825,000 for a down payment on a luxury home in Hopkinton. Ronaldo was sentenced to one year and one day in prison, followed by two years of supervised release with the first six months on home detention. Adriana was sentenced on June 23, 2025 to time served (one day), followed by 27 months of supervised release with the first three months on home detention. They were ordered jointly to pay $1,625,872.03 in restitution – far more than the $1 million they misappropriated, due to interest and penalties. This is wire fraud under 18 U.S.C. § 1343 when EIDL funds certified for business use go to luxury home down payments.
Jesse Lelievre, 42, of North Andover, owner and manager of Paramount Plumbing & Heating LLC, was sentenced by U.S. District Court Judge Denise J. Casper in February 2025 to two years of supervised release, with the first five months as home detention, and ordered to pay $179,090 in restitution. Lelievre obtained an EIDL loan through the SBA program and directed the funds into a bank account that he controlled. He misappropriated approximately $179,000 for personal expenses, including buying a diamond ring and remodeling his home. He pled guilty in September 2024 to theft of government property. The luxury personal purchases – diamond ring, home remodel – triggered bank Suspicious Activity Reports that led to his investigation.
Randolph Dominguez of Lawrence pled guilty to one count of wire fraud and one count of theft of government money. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 21, 2025. In June 2020, Dominguez submitted a loan application to the SBA under the EIDL program. He fraudulently obtained $74,900 in EIDL funds from the SBA in July 2020 when he claimed falsely on his EIDL application that his gross business revenue was $600,000 the previous year, when it was only $16,989. Dominguez improperly spent all of the EIDL funds received on non-business expenses. The discrepancy between claimed revenue ($600,000) and actual revenue ($16,989) was flagged immediately by automated systems that cross-reference applications against IRS tax returns.
EIDL fraud detection is automated. Every EIDL application was cross-referenced against IRS records – business tax returns, personal tax returns for sole proprietorships. Dominguez claimed $600,000 in gross revenue. His tax returns showed $16,989. Computer flagged the 3,500% discrepancy immediately. The SBA Office of Inspector General reviews flagged applications and refers suspected fraud to federal law enforcement. In Boston, FBI handles EIDL investigations, often working with IRS Criminal Investigation.
Bank Secrecy Act reports trigger investigations. When EIDL funds are used for luxury purchases – diamond rings like Lelievre, down payments on luxury homes like the Solanos – banks file Suspicious Activity Reports. The Solanos transferred $1 million from their EIDL account to a personal account, then used $825,000 for a home down payment. That sequence of transfers – business account to personal account to real estate purchase – automatically flagged the fraud. Lelievre’s diamond ring purchase and home remodeling expenses triggered similar reports. Federal agents subpoena bank records and trace every dollar. If funds went to personal expenses instead of working capital for pandemic economic injury – that’s wire fraud when you certified business use on the application.
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. Ronaldo Solano received 13 months in prison for $1 million fraud because he pled guilty and cooperated. Adriana Solano received time served plus 27 months supervised release – likely due to lesser role in the scheme. Lelievre received home detention for $179,000 fraud with early guilty plea and cooperation. Dominguez faces likely 12-24 months for $74,900 fraud when sentenced in May 2025.
Restitution is mandatory – you must repay the full EIDL amount plus interest and penalties. This federal debt survives bankruptcy. The Solanos owe $1,625,872.03 jointly for misappropriating $1 million. Lelievre owes $179,090. Dominguez will owe approximately $74,900 plus interest. Probation terms after prison: 2-3 years supervised release, cannot start/manage a business without permission, continuous financial monitoring. The Solanos face 2+ years of supervised release with initial home detention.
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 tax returns – makes conviction nearly certain. The “trial penalty” means if you’re convicted at trial, you face statutory maximums instead of reduced plea sentences. Ronaldo Solano pled guilty and received 13 months. If he had gone to trial and been convicted for a $1 million fraud, he would have faced 5-10 years in prison.
Timeline: From initial SBA contact to indictment typically runs 6-18 months. District of Massachusetts prosecutors build overwhelming cases before filing charges. By the time you’re indicted, they have everything – bank records, IRS filings, real estate transaction records, witness statements. The mistake Boston 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 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 in Massachusetts for many, many, years. If the SBA contacted you about your EIDL loan – if federal agents asked to interview you – time matters. District of Massachusetts prosecutes aggressively. Call 212-300-5196.
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