Charlotte PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Charlotte did - the government was practically throwing money at businesses during the pandemic chaos. You filled out the application, got approved, used the funds, maybe even got forgiveness. Years passed. You moved on. You assumed the government had moved on too.
It hasn't.
The federal government turned PPP loan fraud prosecution into an assembly line - and Charlotte is directly in the crosshairs. The Western District of North Carolina has prosecuted 35 defendants with nearly $18 million in judgments and settlements. In May 2025, they indicted a sitting City Council member for a scheme involving $124,000. Congress extended the statute of limitations to 10 years - retroactively. That 2020 loan you thought was forgotten? It's prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Charlotte and throughout the Western District of North Carolina. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, or if you're seeing these prosecutions in the news and recognizing something - this article explains exactly what you're facing and what options still exist.
Charlotte Is a Federal Prosecution Hotspot
The Western District of North Carolina covers Charlotte and the surrounding region. This is where your case would be prosecuted if the government decides to move forward. Most people assume federal prosecutors focus on New York, Miami, Los Angeles - the big cities with massive fraud schemes. Charlotte dosent fit that picture in their minds.
The reality is diferent.
Since the PPP program launched, the Western District has prosecuted 35 defendants in COVID fraud cases. They've obtained almost $18 million in judgments or settlements. They've collected over $5.5 million in assets. This isnt theoretical. This is happening right now, in Charlotte, to people who thought they were safe.
The Tiawana Brown case made national headlines. In May 2025, the U.S. Attorney for the Western District indicted a sitting Charlotte City Council member - the representative for District 3 - along with her two daughters. The charges: wire fraud conspiracy and wire fraud related to PPP and EIDL applications totaling aproximately $124,000. According to the indictment, they used the funds for Louis Vuitton merchandise and a birthday party that included a balloon arch, a rented throne, and a horse-drawn carriage.
Other recent Charlotte-area prosecutions:
- Evan Agustin Perez (February 2024): 24 months federal prison for $720,000 PPP/EIDL fraud. Ordered to pay $720,079.82 in restitution.
- Jeannetta Blackmon (March 2025): 30 months federal prison for orchestrating a $1.5 million PPP/EIDL scheme. She operated as a loan "consultant" helping others file fraudulent applications.
- Christopher Brown (January 2024): 60 months federal prison for $2.1 million in fraudulent PPP applications with fabricated payroll records.
- Amanda Davis (February 2024): 44 months federal prison for $1.15 million PPP fraud. Created fictitious marketing firms and submitted false applications.
This is not a theoretical threat. Your neighbors in Charlotte are going to federal prison for PPP fraud right now.
Why 2025 Is Different Than 2021
In August 2022, President Biden signed two laws that changed everything. Most people missed what actualy happened.
The PPP and Bank Fraud Enforcement Harmonization Act extended the statute of limitations from 5 years to 10 years. Retroactively. The rules changed after the game was already played.
That means a PPP loan from April 2020 is prosecutable until April 2030. A loan from March 2021 is prosecutable until March 2031. And heres the part that catches people off guard - if you submitted a forgiveness application in 2022, that may have reset the clock entirely. The statute runs from your last fraudulent act, not from when you recieved the original loan.
The government gave itself a full decade to come for you. And there using every day of it.
But thats only half the problem. Sentences have gotten dramatically harsher. Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. The early pandemic leniency - judges who understood the economic chaos and desperate circumstances - is completley gone.
Federal judges in 2025 include prison time in nearly every PPP fraud sentencing. Regardless of the amount. Regardless of whether its your first offense. The assembly line is running, and it dosent have a mercy setting.
According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants have been charged with pandemic relief fraud. Of those, 2,532 have been found guilty - an 82% conviction rate. Of the convicted defendants who have been sentenced, 1,741 received prison time. Thats 81%.
The median time from referral to indictment has decreased by 45%. What used to take 8-12 months now takes 4-6 months. The machine is getting faster.
Small Loan Does Not Mean Small Prison
"Do people actually go to federal prison for a $20,000 PPP loan?"
Yes.
A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. March 2025. Thats not an outlier - its the new normal.
Tiawana Brown, the Charlotte City Council member, faces charges over $124,000. If convicted, she faces up to 20 years per charge. Her prior federal fraud conviction from 1994 may result in enhanced sentencing. But even first-time offenders are getting substantial prison time.
James Williams received 34 months for $625,000. Amanda Davis got 44 months for $1.15 million. Christopher Brown got 60 months for $2.1 million. The pattern is clear: your getting prison time regardless of the amount.
The government uses charge stacking to maximize pressure. One PPP application can trigger multiple federal charges:
- Wire Fraud (18 U.S.C. § 1343) - up to 20 years
- Bank Fraud (18 U.S.C. § 1344) - up to 30 years
- False Statements to SBA (18 U.S.C. § 1014) - up to 30 years
- Money Laundering (18 U.S.C. § 1956) - up to 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory 2 years consecutive
One application. Five potential charges. Theoretical exposure exceeding 100 years. In practice, sentences dont reach that level - but prosecutors use the charge stack to pressure plea agreements. When your looking at potential decades in prison, even 24 months starts to feel like a win.
The amount of your loan does not determine whether you go to prison. It affects the length of sentence, but not the fundamental question of incarceration.
What You Need to Know Right Now
The single most important rule:
Never agree to discuss a potential PPP fraud case with a federal agent without a lawyer present.
This sounds obvious. But there have been several recent cases - including in the Western District - where people who decided to talk to investigators without counsel ended up being charged with obstruction or making false statements to federal agents, in addition to the underlying PPP fraud. The agents seem friendly. Cooperative. Their not on your side.
Theres a window - typically six to twelve months - between when the SBA OIG flags a loan and when the case gets referred to the FBI for criminal investigation. During this window, a skilled defense attorney may be able to negotiate a civil disposition. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either.
That window closes forever once criminal charges are filed.
But heres the trap most people fall into.
Some people, panicking, decide to voluntarily repay the loan thinking it will make the problem go away. Tiawana Brown claimed she repaid $20,833 after learning about the investigation. It didn't stop the indictment. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money doesnt make it go away - it can actually strengthen their case against you.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction becomes a separate 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 be evidence of guilt.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled federal fraud cases in districts across the country. He understands the difference between an OIG-stage investigation where civil resolution may be possible, and an FBI-stage investigation where criminal defense becomes the priority. The timing matters enormously.
When Your Ready
If you're in Charlotte - or anywhere in the Western District of North Carolina - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options exist.
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 - not best-case fantasies, but actual possibilities based on how these cases play out in the Western District?
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.
Dont wait until federal agents show up at your door.
Were here when you need us.
