Columbus PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone did - the government was practically throwing money at businesses during the pandemic. 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 Southern District of Ohio has turned PPP fraud prosecution into an assembly line - and Columbus businesses are directly in the crosshairs. Congress extended the statute of limitations to 10 years retroactively, meaning 2020 loans are prosecutable until 2030. Lorie Schaefer of Westerville got 70 months. Joseph Lentine got 63 months. Kelton McClarrin got 18 months for just $21,000. The government has time. And they're using it.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Columbus and throughout the Southern District of Ohio. If you're under investigation, if you've received a letter from the SBA Office of Inspector General, or if federal agents have contacted you - this article explains exactly what you're facing and what options exist.
The Southern District of Ohio Is Actively Prosecuting PPP Fraud
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.
That means 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 there using it. As of December 2024, the DOJ continues to investigate PPP fraud as a top enforcement priority. The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, SBA OIG, and other agencies. There not slowing down.
Recent Southern District of Ohio PPP fraud cases:
- Lorie Schaefer (Westerville, June 2025): Sentenced to 70 months for nearly $1.9 million in PPP fraud. She falsely claimed affiliation with Dayton-area pizza restaurants and used funds to buy a home worth $786,000 and liposuction for $26,000.
- Joseph Lentine III (Cincinnati, January 2025): Sentenced to 63 months as ringleader of a COVID-19 relief fraud scheme. He personally recieved over $450,000 and used it to buy a yacht and a Mercedes Benz. Ordered to pay $1.2 million in restitution.
- Kelton McClarrin (Cincinnati, March 2024): Sentenced to 18 months for $21,000 in PPP fraud. Used the money for CashApp, Grubhub, DoorDash, Facebook purchases, and hotels.
- Ajay & Ruhi Chawla (Central Ohio, June 2025): Pleaded guilty to fraudulently recieving over $900,000 in PPP and EIDL loans. Sentencing pending.
The Southern District of Ohio is not waiting. All four locations within the district - Columbus, Dayton, Cincinnati, and southern Ohio - are seeing active prosecution.
But the local cases only tell part of the story. The national numbers reveal something worse.
The Numbers That Define Your Reality
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 defendants have been found guilty (82%)
- 1,741 received prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years
More than 440 defendants were ordered to pay $1 million or more in restitution. Restitution amounts have reached as high as $71 million. IRS Criminal Investigation has launched 2,039 COVID fraud investigations totaling $10 billion in attempted fraud.
This is an assembly line.
The conviction rate is 82%. The prison rate for those convicted is 81%. These arent probation cases. These are federal prison sentences.
But heres the number that should stop you cold.
Kelton McClarrin got 18 months in federal prison for $21,000 in PPP fraud. Thats the cost of a used car. Thats a few months of payroll for a small business. And it cost him 18 months of his life in federal custody.
The amount dosent protect you.
Early in the pandemic, some federal judges showed leniency. The economic chaos. The desperation. The confusing guidance. Some gave probation or minimal prison time for smaller PPP frauds.
Those days are completley over.
Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved.
And it gets worse. The DOJ uses pre-existing fraud statutes to prosecute PPP fraud. One application can trigger multiple charges:
One PPP application can create theoretical exposure exceeding 100 years. In practice, sentences dont reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations.
So what can you do? Most people dont know theres a window.
The Window Nobody Tells You About
Heres something most people dont understand about PPP investigations.
There's 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, 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 is your only leverage.
Once the FBI takes the case, once the grand jury indicts, civil resolution is off the table. You're in criminal territory now. The options narrow dramatically.
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. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money dosent make it go away - it can actualy strengthen the governments case against you.
This is complicated. The timing matters enormously. Whether to repay, when to repay, how to structure any resolution - these decisions require counsel who understands how federal prosecutors think.
Which brings us to what you should actualy do.
What to Do If You're Under Investigation
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 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.
If your 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 federal court. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority.
When You're Ready
If you're in Columbus - or anywhere in the Southern District of Ohio - 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. 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 - not best-case fantasies, but actual possibilities based on how these cases play out in the Southern 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.
Don't wait until federal agents show up at your door.
We're here when you need us.
