Clark County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Clark County did - the casinos were shuttered, the strip was empty, businesses across Vegas were desperate for any lifeline the government would throw. You filled out the application, got approved, used the funds. Years passed. You figured the feds had bigger fish - casino cheats, organized crime, the stuff Nevada prosecutors are known for.
They do have bigger fish. But they're also coming for PPP fraud - and they're doing it harder than anywhere else in the country.
The District of Nevada just handed down the longest PPP fraud sentence in America. Not California. Not New York. Nevada. A Henderson man got 15 years and 5 months for PPP fraud. Congress extended the statute of limitations to 10 years, which means that 2020 loan you thought was forgotten? It's prosecutable until 2030. The same federal prosecutors who trace casino chips can trace PPP dollars just as easily.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Clark County and throughout the District of Nevada. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, or if you're just lying awake at night wondering whether that 2020 application is going to come back - this article explains what you're actually facing in this jurisdiction.
The 10-Year Clock Is Still Running
Most people assume the statute of limitations has run. Five years from 2020 would be 2025. You're safe now. The government had there chance and they missed it.
That assumption is wrong.
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people missed what it actualy did. It extended the statute of limitations from 5 years to 10 years - retroactively. Congress didnt just give the government more time going forward. They reached back and added years to every PPP loan ever issued.
A 2020 PPP loan is prosecutable until 2030. A 2021 loan until 2031. The government gave itself a decade specifically so no one could wait it out. And there not waiting. The COVID-19 Fraud Enforcement Task Force remains active, coordinating across FBI, IRS Criminal Investigation, and SBA OIG. As of January 2023, the SBA Inspector General had 536 ongoing investigations. That number has only grown since.
The extension wasnt an accident. Congress knew most fraud would take years to detect because the data had to be cross-referenced across multiple agencies. They built in the time deliberately.
That would be concerning enough on its own. But heres were Clark County residents face a reality most people dont expect.
Nevada Handed Down the Longest PPP Sentence in America
People assume the feds in Vegas focus on casino fraud. Makes sense - thats the industry. The FBI and IRS have spent decades chasing skimming operations, money laundering through casinos, organized crime. PPP fraud seems like small-time stuff compared to that.
A Henderson man named Meelad Dezfooli just got 15 years and 5 months in federal prison.
Thats the longest PPP fraud sentence in America. Not from the Southern District of New York. Not from the Central District of California. From the District of Nevada. Your jurisdiction.
The details of the Dezfooli case should concern anyone who thought they could hide PPP fraud in real estate or other assets. He obtained more than $11 million through fraudulent PPP applications. Then he laundered the money by purchasing approximately 25 properties in Nevada, using an alias - "James Dez" - and a fictitious entity called "Holdings Trust." He used the proceeds to fund gambling throughout Las Vegas, buy luxury cars, and make personal investments.
Heres the part that should really worry you: even after he was indicted, Dezfooli continued laundering money. He kept selling properties purchased with PPP funds. The FBI traced every transaction. They caught all of it. Real estate dosent hide federal fraud. The government has gotten very good at following money through property records.
Dezfooli isnt the only one. Karen Chapon of Las Vegas got 30 months for seeking over $1 million through six fraudulent PPP applications with false tax filings. Jaquari Davonte Woodward of North Las Vegas got 19 months for filing 56 fraudulent applications - and he advertised on social media, offering to file fake applications for others at $10,000 each. Brandon Casutt of Henderson got 28 months and used his PPP proceeds to buy a house right here in Clark County.
The District of Nevada isnt lenient because its Vegas. Its aggressive because its Vegas. These prosecutors know how to follow money. They've been doing it for decades. PPP fraud is just another trail to trace.
So what does this mean for your situation? The numbers tell the story.
The Assembly Line Statistics
According to Pandemic Oversight, as of December 31, 2024, federal prosecutors have charged 3,096 defendants with pandemic relief fraud. Of those, 2,532 have been found guilty. Thats an 82% conviction rate. Of the convicted, 1,741 received prison time - 81%. And 2,008 were ordered to pay restitution - 94%.
IRS Criminal Investigation achieves a 98.5% conviction rate in prosecuted COVID fraud cases. Once they bring charges in the District of Nevada, you're facing those odds.
Now, not everyone gets 15 years. Dezfooli was an outlier - $11 million, 25 properties, continued laundering after indictment, went to trial and lost. Typical sentences for medium-sized PPP fraud ($50,000 to $500,000) run between 18 and 36 months. That might sound more manageable.
But 18 months in federal prison still destroys a career in Clark County. Your business. Your reputation. Your ability to work with banks and vendors afterward. And the sentencing trend is moving in the wrong direction. Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer then defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency is completley over.
The amount you took dosent protect you the way people think. Jaquari Woodward got 19 months for $20,833 in actual proceeds. Not millions - twenty thousand dollars. Federal judges in 2025 include prison time in nearly every PPP sentencing regardless of amount.
And one PPP application can trigger multiple federal charges. Wire fraud carries 20-30 years. Bank fraud carries 30 years. False statements to the SBA carries 30 years. Money laundering carries 20 years. Aggravated identity theft adds a mandatory 2 years consecutive. Dezfooli faced 10 separate counts. The charge stacking gives prosecutors enormous leverage in plea negotiations. Even if individual charges seem survivable, the combined exposure is overwhelming.
So what should you actualy do if your worried about a PPP loan you got in Clark County?
What Clark County Residents Should Do Now
The single most important rule:
Never talk to federal agents without a lawyer present.
This sounds obvious. But people panic. The agents seem friendly, professional. They say theyre just gathering information. There recent cases where people who decided to talk to investigators without counsel ended up charged with obstruction or making false statements - in addition to the underlying PPP fraud. Talking makes it worse.
Heres what most people dont understand about PPP investigations. 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, there is leverage that completley disappears once criminal charges are filed.
During the OIG review stage, civil resolution may still be possible. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction destroying your life in Clark County.
But you have to be careful about how you handle it. Voluntary repayment - just sending the money back on your own - can be used as evidence of consciousness of guilt. The DOJ has explicitly stated this. Returning the money without proper legal guidance dosent make the problem go away. It can actually strengthen there case against you.
What NOT to do:
- Don't destroy any documents. Document destruction is a separate federal charge.
- Don't discuss the matter with others who may be involved. Those conversations become evidence.
- Don't make voluntary payments to the SBA without counsel.
- Don't assume the small amount protects you. It dosent.
Todd Spodek has handled federal fraud cases involving PPP loans in the District of Nevada. He understands the difference between OIG-stage investigations where civil resolution may still be possible and FBI-stage investigations where criminal defense becomes the priority. The stage of your investigation determines your options.
When Your Ready
If your in Clark County - or anywhere in the District of Nevada - and you're worried about a PPP loan, Spodek Law Group can help you understand where you stand.
The consultation is free. Theirs no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage? Has it been referred to the FBI? What does your exposure actually look like based on how these cases play out in Nevada federal court? Not best-case fantasies - realistic outcomes based on this jurisdiction's sentencing patterns.
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 accelerate fast. The 6-12 month OIG window is the leverage point. The earlier you have counsel, the more options exist.
The District of Nevada just handed down the longest PPP fraud sentence in America. Fifteen years. In Henderson. If your still thinking nobody comes for small PPP fraud in Vegas - that assumption could cost you everything.
Were here when you need us.
