Columbus PPP Loan Fraud Lawyers

Columbus PPP Loan Fraud Lawyers

The SBA Office of Inspector General sent you a letter about your PPP loan. Or federal agents contacted you in Columbus asking about your Paycheck Protection Program application. You’re in Ohio. Joseph Lentine III, 55, of Cincinnati, was sentenced in January 2025 to 63 months in federal prison for orchestrating a COVID-19 relief fraud scheme involving millions of dollars – he personally received more than $450,000 in PPP loan proceeds and used the money to buy a yacht and a Mercedes Benz vehicle. Kelli Prather, a Cincinnati woman, was convicted at trial in summer 2023 and sentenced in April 2024 to 84 months (7 years) in federal prison for PPP fraud. A Westerville woman was sentenced in June 2025 to 70 months in prison for fraudulently obtaining nearly $1.9 million in COVID-19 relief funds by falsely claiming affiliation with Dayton-area pizza restaurants. The Southern District of Ohio is actively prosecuting PPP fraud cases in 2025.

Thanks for visiting Spodek Law Group – a second-generation law firm managed by Todd Spodek. We’ve defended federal PPP fraud cases in Ohio for many, many, years. We know how Southern District prosecutors charge Paycheck Protection Program fraud and what sentences you’re facing.

The federal government approved PPP loans in 2020 with minimal verification. Now in 2025, they’re prosecuting Columbus-area business owners for luxury spending and false applications. Here’s what happens in YOUR situation.

Joseph Lentine III – $450,000 PPP Fraud Buys Yacht and Mercedes

Joseph Lentine III, 55, of Cincinnati, was sentenced to 63 months in federal prison in January 2025 for orchestrating a COVID-19 relief fraud scheme, the defendant personally received more than $450,000 in Paycheck Protection Program loan proceeds related to this scheme and used the money to buy a yacht and a Mercedes Benz vehicle, Lentine acted as the ringleader of a fraud scheme involving millions of dollars in PPP applications across multiple entities, federal prosecutors charged him with wire fraud for submitting false PPP loan applications claiming employees and payroll expenses that did not exist, the luxury spending triggered federal investigation when banks filed Suspicious Activity Reports under the Bank Secrecy Act after PPP funds deposited into business accounts flowed immediately to personal luxury purchases, the SBA Office of Inspector General reviews these reports and identifies fraud patterns, buying a yacht and Mercedes Benz the same month as receiving $450,000 in PPP funds creates automatic fraud flag, wire fraud under 18 U.S.C. § 1343 is punishable by up to 20 years in federal prison, false statements to the SBA under 18 U.S.C. § 1014 carry up to 30 years in federal prison and a $1 million fine, ringleader roles in multi-defendant conspiracies result in sentencing enhancements under federal guidelines, Lentine’s January 2025 sentencing demonstrates that Southern District of Ohio continues active prosecution of PPP fraud cases five years after the pandemic.

Lentine’s case demonstrates how luxury spending patterns trigger federal PPP fraud investigations. When business bank accounts receive PPP deposits and those funds immediately transfer to purchase yachts, luxury vehicles, or high-end recreational equipment, banks must file Suspicious Activity Reports under federal law. The SBA Office of Inspector General receives these reports and cross-references them against the original PPP loan applications. If the PPP application claimed the funds were needed for payroll and business expenses, but the funds went to personal luxury purchases within days of receipt, federal agents open fraud investigations. Lentine received $450,000 and bought a yacht and Mercedes – the timing created documentary evidence of fraud.

Trial Penalty – Kelli Prather’s 7-Year Sentence

Kelli Prather, a Cincinnati woman, was convicted at trial in summer 2023 of fraud crimes related to COVID-19 relief programs. She was sentenced in April 2024 to 84 months (7 years) in federal prison. Prather exercised her constitutional right to a jury trial instead of pleading guilty. A federal jury convicted her after prosecutors presented evidence of fraudulent PPP loan applications.

Prather went to trial instead of pleading guilty. She received 84 months (7 years) in prison. Joseph Lentine III orchestrated a scheme involving millions of dollars, personally received $450,000, and was the ringleader coordinating multiple fraudulent applications. Lentine pled guilty and received 63 months (about 5 years). Prather: trial conviction = 84 months. Lentine: guilty plea for larger ringleader scheme = 63 months (21 months less than Prather). The difference demonstrates the trial penalty. Defendants who exercise their constitutional right to trial and are convicted face harsher sentences than defendants who plead guilty to larger fraud amounts. Federal PPP fraud cases have 97%+ conviction rates at trial. Documentary evidence – your PPP application with your signature, your IRS tax returns showing actual payroll expenses, your bank statements showing how you spent PPP funds – makes conviction nearly certain.

Westerville Woman – $1.9 Million Pizza Restaurant Fraud

A Westerville woman was sentenced in June 2025 to 70 months in federal prison for fraudulently obtaining nearly $1.9 million in COVID-19 relief funds. The defendant falsely claimed affiliation with Dayton-area pizza restaurants to obtain PPP and EIDL loans. She submitted applications claiming she owned or operated pizza restaurants in the Dayton area with significant payroll expenses and employee counts. Federal investigators discovered she had no legitimate affiliation with the restaurants listed on her applications.

The Westerville pizza fraud demonstrates how federal agents verify business affiliations. The SBA cross-checks PPP applications against state business registrations, IRS Employer Identification Numbers, and prior-year tax returns. If your PPP application claims you operate “ABC Restaurant” with 25 employees and $500,000 in annual payroll, but Ohio Secretary of State records show no business registration, no EIN associated with your name, and no IRS Form 941 quarterly payroll tax filings, automatic fraud flag. The Westerville defendant claimed affiliation with existing pizza restaurants – federal agents contacted the actual restaurant owners who confirmed they had no relationship with the defendant. Falsely claiming affiliation with legitimate businesses to inflate PPP loan amounts is wire fraud.

The June 2025 sentencing demonstrates continued enforcement. The Westerville woman received 70 months for $1.9 million in fraud. The Southern District of Ohio sentenced her five years after the pandemic – PPP fraud prosecutions continue through 2025 and beyond.

How Southern District Prosecutes PPP Fraud

Luxury spending triggers Bank Secrecy Act reports. Lentine bought a yacht and Mercedes with $450,000 in PPP funds. When banks see business accounts receiving PPP deposits followed immediately by wire transfers for boats, luxury vehicles, jewelry, or high-end purchases, they file Suspicious Activity Reports. Federal law requires banks to report suspicious patterns. The SBA Office of Inspector General receives these reports and opens fraud investigations.

The SBA cross-checks PPP applications against IRS tax returns. Your PPP loan amount was calculated based on claimed payroll expenses. If your PPP application claimed $500,000 in annual payroll but your IRS Form 941 quarterly payroll tax returns show $100,000, automatic fraud flag. If your PPP application listed 25 employees but your IRS filings show 5 employees, federal agents investigate. Discrepancies between PPP applications and IRS records trigger fraud prosecutions.

Trial versus plea outcomes differ dramatically. Prather: trial conviction = 84 months (7 years). Lentine: guilty plea for larger scheme as ringleader = 63 months. Westerville woman: guilty plea for $1.9 million = 70 months. Per dollar of fraud, defendants who go to trial receive harsher sentences. The trial penalty exists because federal sentencing guidelines reward “acceptance of responsibility” with a 2-3 level reduction. Going to trial means no acceptance of responsibility, resulting in higher guideline ranges.

Federal PPP fraud charges carry severe statutory maximums. Wire fraud (18 U.S.C. § 1343): up to 20 years per count. False statements to SBA (18 U.S.C. § 1014): up to 30 years and $1 million fine. Bank fraud (18 U.S.C. § 1344): up to 30 years and $1 million fine. Multiple PPP applications mean multiple counts – each application is a separate wire fraud count. Defendants who submitted 5 fraudulent PPP applications face 5 counts of wire fraud, each carrying up to 20 years.

Sentencing ranges in Southern District of Ohio 2024-2025. Kipterrez James (February 2025): 13 months. Kelton McClarrin (March 2024): 18 months. Nii Tei (November 2024): 48 months for structuring transactions from fraud proceeds. Lentine (January 2025): 63 months for $450k ringleader scheme. Westerville woman (June 2025): 70 months for $1.9M. Prather (April 2024): 84 months after trial conviction. The range shows fraud amount and cooperation matter – smaller amounts with guilty pleas result in 13-18 months, larger amounts or trial convictions result in 60-84 months.

The mistake Columbus business owners make: responding to initial SBA Office of Inspector General audit letters without legal counsel. They think explaining discrepancies will resolve the issue. Instead, statements like “I may have overstated my payroll expenses on the PPP application” become admissions of wire fraud. “I didn’t realize PPP required exact figures from my tax returns” is a confession, not a defense. By the time they hire a federal criminal defense attorney, they’ve already confessed.

Cooperation value matters. Under the False Claims Act, whistleblowers who report PPP fraud can receive 15-30% of the funds recovered by the government. This creates incentive for co-conspirators to cooperate. If you coordinated with business partners or family members to submit multiple PPP applications, the first person to cooperate receives sentence reductions and potential financial rewards. In multi-defendant conspiracies, early cooperation results in dramatically shorter sentences.

At Spodek Law Group – Todd Spodek has defended federal PPP fraud cases in Ohio for many, many, years. If the SBA Office of Inspector General sent you a letter – if federal agents asked to interview you about your Paycheck Protection Program loan – time matters. Southern District of Ohio has active 2025 prosecutions. Lentine sentenced January 2025. Westerville woman sentenced June 2025. Prather sentenced April 2024. Call 212-300-5196.