Broward County PPP Loan Fraud Lawyers
You got a PPP loan during COVID. Maybe back in 2020 when everyone was panicking about whether their business would survive. Maybe in 2021 when the second round opened up. You filled out the application, got approved, used the money however you used it. Years passed. Life moved on. You assumed the federal government had moved on too.
They didn't.
The Southern District of Florida is one of only three federal districts in the entire country chosen to lead the national COVID-19 Fraud Strike Force. Broward County sits directly in that crosshairs. Congress extended the statute of limitations to 10 years - retroactively - which means that 2020 loan you thought was ancient history is prosecutable until 2030. And the government is using every one of those years.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Broward County and throughout the Southern District of Florida. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, or if you're watching the news about local prosecutions and wondering if you're next - this article explains what you're actually facing.
Why Broward County Is Ground Zero for PPP Prosecution
In September 2022, Attorney General Merrick Garland announced the creation of COVID-19 Fraud Strike Force teams. Three federal districts were selected to lead the national effort.
The Southern District of Florida was one of them.
This isn't just aggressive local prosecution. This is a federally-designated enforcement hub with extra resources, dedicated personnel, and explicit instructions to make PPP fraud prosecution a priority. Broward County, Miami-Dade, Palm Beach, Monroe - the entire region is under the jurisdiction of prosecutors who have been specificaly tasked with bringing these cases.
The statute of limitations makes it worse. In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. What it actualy did: extended the statute of limitations from 5 years to 10 years. And it applied retroactively.
A PPP loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. The government gave itself a full decade to come for you - and if your in Broward County, your in one of three districts where there prioritizing exactly that.
So what does prosecution actualy look like here? The local cases tell the story.
What the Numbers Actually Show
October 2023. Seventeen employees of the Broward Sheriff's Office were charged with COVID-19 relief fraud in a single coordinated sweep.
The scope of that investigation is what should concern you. All 5,500 BSO employees were examined. Not just the ones who looked suspicious - everyone. The agency identified roughly 100 employees who had taken PPP loans and narrowed down to those whose applications raised questions. Sources indicated as many as 40 were still under investigation when the first 17 were charged.
When they look, they look at everyone.
The sentences from these cases:
- Stephanie Diane Smith (Sunrise, Broward County): 7 months federal prison for $31,108 in PPP fraud. She was a deputy sheriff. Convicted at trial of wire fraud.
- Lazaro Verdecia Hernandez (Miami): 15 years federal prison for leading a $14.5 million PPP fraud scheme involving 63 fraudulent applications.
- Luke Joselin (Coral Springs): 84 months federal prison - thats 7 years - for nearly $2 million in fraudulent applications. Convicted at trial. Ordered to pay $812,857 in restitution.
- Wally Dorlus (Margate): 48 months federal prison for his role in a $28 million scheme. He was a tax preparer who filed aproximately 170 fraudulent PPP applications.
Seven months. For thirty-one thousand dollars.
The national statistics are just as brutal. According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants charged with pandemic relief fraud. 2,532 found guilty - thats an 82% conviction rate. Of those convicted, 1,741 received prison time. Thats 81%.
Eighty-one percent of people convicted of PPP fraud go to prison. Not probation. Not home confinement. Prison.
The amount dosent protect you. The conviction rate dosent care about your intentions. And if your in Broward County, your facing prosecutors who have been told by the Attorney General to make this a priority.
Those numbers are bad enough. But most people make it worse before they even realize whats happening.
The Trap Most People Fall Into
When people realize they might be in trouble over a PPP loan, they instinctively try to fix it.
There instincts are wrong.
The first thing people want to do: repay the loan. The logic seems obvious. "If I just give it back, they'll leave me alone. I'll show good faith. Problem solved."
The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt.
Returning the money dosent make the problem go away. It can actualy strengthen the government's case against you. You returned it because you knew something was wrong. That's how prosecutors frame it. What seemed like the responsible thing to do becomes exhibit A at your sentencing.
The second instinct: explain yourself. "I'll just talk to the investigators and clear this up. They'll understand once I explain."
Theres been multiple recent cases in the Southern District of Florida where people who decided to talk to investigators without counsel ended up with additional charges. Obstruction of justice. Making false statements to federal agents. On top of the PPP fraud they were originaly being investigated for.
The agents seem friendly. Cooperative. Understanding. Their not on your side.
One PPP application can trigger five seperate federal charges:
- Wire Fraud (18 U.S.C. § 1343) - 20 to 30 years
- Bank Fraud (18 U.S.C. § 1344) - 30 years
- False Statements to SBA (18 U.S.C. § 1014) - 30 years
- Money Laundering (18 U.S.C. § 1956) - 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory 2 years consecutive
One application. Five charges. Combined theoretical exposure exceeding 100 years.
So if you can't repay without risk and you can't talk without risk - what can you do?
What You Should Do Instead
There's a window.
Typically six to twelve months between when the SBA Office of Inspector General flags a loan and when the case gets referred to the FBI for criminal investigation. During this window, there is leverage that completely disappears once criminal charges are filed.
During the OIG review stage, a skilled defense attorney may be able to negotiate a civil disposition. Repayment plus a fine. Maybe a False Claims Act settlement. It's not pleasant, but it's not a federal felony conviction either. It's not prison. It's not the 81%.
Once the FBI takes over and the U.S. Attorney's Office files criminal charges, that window closes. The leverage disappears. You're now in a criminal case in the Southern District of Florida - one of the three most aggressive PPP prosecution districts in the country.
If you're under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a separate charge.
- Don't discuss the matter with others who may be involved. Those conversations can be used against you.
- Don't make voluntary payments to the SBA without counsel. This can be used as consciousness of guilt.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases in the Southern District of Florida. He understands the difference between OIG-stage investigations where civil resolution may still be possible, and FBI-stage investigations where criminal defense strategy becomes the priority.
Getting Real Answers
If you're in Broward County - or anywhere in South Florida - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options actually 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 based on how these cases are being handled in SDFL right now?
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 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.
