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Chicago ERC Fraud Defense – Federal Criminal Defense Attorneys
The Internal Revenue Service continues aggressive ERC enforcement in Chicago, sending Letter 6612 audit notifications to thousands of businesses that claimed Employee Retention Credits, and you need an experienced and respected criminal defense attorney protecting your freedom and your rights. The IRS monitors and investigates potentially fraudulent ERC claims throughout Illinois. The Department of Justice Criminal Fraud Section coordinates with IRS Criminal Investigation on ERC prosecutions, and the Northern District of Illinois Federal Court handles these cases in Chicago.
An investigation and/or criminal prosecution can threaten an individual’s professional reputation and freedom. During the investigative stage, an experienced criminal defense attorney can assist the individual by responding to an inquiry from the IRS. This response may be in writing and/or in person during an investigative interview. With experienced defense counsel, an effective response may result in the investigation closing without a formal filing. This is absolutely critical.
The financial and emotional costs of a formal criminal filing can be overwhelming, and can tarnish a career given that the filing and charges of the individual’s violations are publicly available because criminal charges are posted to the court system, published in the media, and accessible through online databases. Even if the allegations are later disproven, the damaging effect may linger.
It is important to retain an experienced criminal defense attorney early. At Spodek Law Group, we understand the complexities of defending an individual’s freedom. Whether your legal problem arises from an IRS audit, a criminal investigation, or federal fraud charges we can assist you in protecting your employment and freedom.
Our office is experienced defending individuals facing criminal prosecution(s) due to the following allegations:
Individuals are required to cooperate with IRS investigations when served with a summons and/or when contacted by special agents according to federal statutes. Any false statement to federal agents can result in additional criminal charges under 18 USC 1001. A special agent will follow-up in writing requesting additional information if necessary and/or may request an interview.
The IRS Criminal Investigation Division and the FBI may become involved in cases involving fraudulent ERC claims. Agents from these agencies and/or the U.S. Attorney’s Office have authority to investigate violations that may constitute criminal offenses under federal law.
At Spodek Law Group we evaluate the best course of action for the individual by examining your circumstances and taking a proactive, understanding approach. As experienced criminal defense counsel, we represent individuals at all phases of the Criminal Proceedings including:
At Spodek Law Group, we also assist individuals with Voluntary Disclosure Program submissions and/or cooperation agreements which have been previously denied. We pride ourselves on taking a comprehensive strategy to defend the individual’s freedom. Over 40 years combined experience – really.
Depending on the individual’s circumstance, the defense strategy may include:
Requesting a meeting with the U.S. Attorney’s Office to present evidence to either refute the allegation that fraud occurred or mitigate the degree of charges;
Retaining appropriate experts in ERC eligibility issues at hand;
Retaining a defense investigator to interview any witnesses, issue subpoenas of relevant records, secure accounting data, and/or evaluate the documentation;
Developing a constitutional defense if Fifth Amendment violations are at issue. This may include documentation showing compelled self-incrimination and/or reasonable reliance on professional advice; or if necessary recommend negotiating a plea agreement to address any criminal liability under federal sentencing guidelines;
Creating a mitigation strategy for sentencing. Sometimes in our lives we suffer business hardships, pandemic pressures, financial distress, or even just go through an extended period of difficulty. In these instances, an individual is not in need of criminal prosecution by the government; they need understanding andcontext;
Assisting the individual with gathering the necessary mitigation documents to support a defense package and/or prepare for trial with the prosecution.
| Charge Type | Statute | Maximum Penalty |
|---|---|---|
| Wire Fraud | 18 USC 1343 | 30 years prison |
| False Claims | 18 USC 287 | 5 years prison |
| Conspiracy | 18 USC 371 | 5 years prison |
| False Statements | 18 USC 1001 | 5 years prison |
| Voluntary Disclosure | IRS Program | 85% repayment |
ERC fraud prosecutions by federal prosecutors have increased significantly in Chicago. The government has charged hundreds of defendants with fraudulent ERC claims in recent years. Recent cases show the range – defendants have received outcomes from deferred prosecution agreements to multi-year prison sentences depending on circumstances and representation.
The government now pursues even questionable claims aggressively. Businesses that relied on promoter advice now face criminal charges. The Department of Justice announced its largest ERC fraud indictment in January 2025, charging seven defendants with obtaining over $44 million through fraudulent claims.
IRS Criminal Investigation opened 493 ERC investigations in fiscal year 2024, covering $5.5 billion in potentially fraudulent claims nationwide. Those aren’t random audits – they’re criminal investigations conducted by special agents with arrest authority. Early legal intervention prevents unnecessary prosecution.
Federal penalties for ERC fraud vary based on the charges filed and loss amount involved. Wire fraud under 18 USC 1343 carries up to 30 years in federal prison, though actual sentences typically range from 24-36 months. False claims under 18 USC 287 carries up to 5 years. Civil penalties include full repayment plus 20% accuracy penalties. The IRS Voluntary Disclosure Program allows qualifying businesses to pay back 85% without criminal prosecution. Professional consequences include license revocation, business damage, and reputational harm lasting beyond any sentence.
Federal fraud defense typically requires significant legal resources due to case complexity and potential consequences. Most experienced federal defense attorneys charge between $500-$1,500 per hour or require substantial retainers ranging from $50,000 to $250,000 depending on case severity. Complex ERC fraud cases involving multiple defendants or extensive documentation may cost more. Some attorneys offer payment plans or flat fee arrangements for specific phases like responding to Letter 6612. The cost of not having experienced counsel – potential prison time, asset forfeiture, and career destruction – far exceeds legal fees.
The IRS provides multiple channels for reporting suspected ERC fraud. Form 3949-A allows anonymous reporting of suspected tax fraud directly to the IRS. The IRS Whistleblower Office offers monetary rewards for information leading to recovery of fraudulent claims exceeding $2 million. Reports can be submitted online through the IRS website or mailed to the Fresno Service Center. The Department of Justice also accepts fraud reports through its National Center for Disaster Fraud. Individuals with knowledge of ERC fraud schemes should consult an attorney before reporting to understand potential whistleblower protections and rewards.
If you or your business faces ERC fraud allegations or received IRS Letter 6612, contact the experienced federal defense attorneys at Spodek Law Group. We have over 40 years of combined experience defending individuals and businesses against federal fraud charges. Our attorneys understand the complexities of ERC regulations and available defenses.
For immediate assistance, call us at 212-300-5196. We maintain 24-hour availability for urgent criminal matters. Don’t wait until formal charges are filed – early intervention often produces significantly better outcomes.
Spodek Law Group
Federal Criminal Defense Attorneys
212-300-5196
Available 24/7 for Criminal Matters
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS