Cook County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. You used it. Got forgiveness. Moved on. Then you saw the news about Cook County employees getting investigated. Hundreds of them. State workers. Sheriff's officers. People just like you who thought the pandemic money was free and clear.
You should be worried.
The federal government turned PPP loan fraud prosecution into an assembly line - and Cook County is ground zero. The Northern District of Illinois has become one of the highest-volume prosecution zones in the country. 378 state employees investigated with "reasonable cause" findings. All 163 Cook County Sheriff office cases referred to prosecutors. Investigation-to-indictment time down 45% compared to two years ago. The 10-year statute of limitations means that 2020 loan you thought was ancient history is prosecutable until 2030. This is not slowing down. It's accelerating.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Cook County and throughout the Northern District of Illinois. If you're under investigation, if the SBA Office of Inspector General has contacted you, or if you've been served with a grand jury subpoena - this article explains what you're facing and what options might still exist.
The Federal Government Is Still Coming
In August 2022, Congress extended the statute of limitations for PPP fraud from 5 years to 10 years. They did it retroactively. Most people have no idea this happened.
A PPP loan from 2020 is now prosecutable until 2030. A loan from 2021 until 2031. The government gave itself a full decade to come for you.
According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants charged with pandemic relief fraud. 2,532 convicted - thats 82%. Of those convicted, 1,741 recieved prison time. Thats 81%. Not probation. Not home confinement. Federal prison.
The assembly line has gotten faster. The median time from initial referral to indictment has decreased by 45% compared to 2022-2023. What used to take 8-12 months now takes 4-6 months. The DOJ's COVID-19 Fraud Enforcement Task Force has dedicated strike forces. They have resources. They have momentum. And there not slowing down.
Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency is completley over. A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. March 2025. The amount dosent protect you. Federal judges in 2025 include prison time in nearly every PPP sentencing regardless of the amount involved.
Cook County Is Ground Zero
The Northern District of Illinois covers Chicago and the surrounding counties - including all of Cook County. This is one of the busiest federal districts in the country for white-collar prosecution.
The numbers coming out of Cook County are staggering.
According to the Chicago Tribune, the Illinois Office of Executive Inspector General found "reasonable cause" in 378 investigations involving state employees who acquired PPP loans "based on falsified information." More then $2.8 million in loans. Employees from Human Services, Juvenile Justice, Corrections, Children and Family Services. Many loans were in the $20,000 range - the same amount that got someone 18 months in federal prison.
At the Cook County Sheriff's office: all 163 investigated cases were referred to federal or state prosecutors. Every single one. 29 active criminal investigations are underway right now.
Recent Cook County cases from DOJ press releases:
- Farooq Khan (Chicago): 42 months federal prison for preparing over 30 fraudulent PPP and EIDL applications through his tax preparation business. $3.6 million in funded loans. Ordered to pay $3,645,104 in restitution.
- Francesco Distefano (Addison, IL): Indicted December 2024 for a $6.3 million PPP and EIDL fraud scheme. Used the money to buy a Lamborghini Huracan, a Maserati Ghibli, and a Porsche 911. Faces up to 30 years.
- John Williams and Kiara Brown (Cook County Sheriff's Officers): Indicted May 2024. Williams falsely claimed to own a barbershop to get $41,666 in PPP loans. Brown claimed nail and beauty salons for $39,790.
- Jalal (Niles): 62 months federal prison. Sentenced February 2025. Ordered to pay more then $1.5 million in restitution.
This isnt random enforcement scattered across the country. Cook County is a target. Your neighbors are getting indicted.
The Window That Closes
Most people dont understand how PPP investigations actualy work. There moving through a pipeline, and there's a critical window that most defendants miss completley.
The SBA Office of Inspector General flags loans based on data analytics, bank suspicious activity reports, and tips to their hotline. But heres the thing - SBA OIG is not a criminal prosecution agency. They investigate. They make findings. Then they decide what happens next.
There's a window - typically six to twelve months - between when OIG flags a loan and when the case gets referred to the FBI for criminal investigation. During this window, there may be 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 penalty. Maybe a False Claims Act settlement. Not pleasant - but not a federal felony conviction either.
But most people fall into two traps.
The first trap: voluntary repayment. Some people, panicking, decide to 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. Your trying to fix it, and your actualy making there case stronger.
The second trap: talking to investigators. 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 building a case while your explaining yourself.
The intuitive responses - repay and explain - are both wrong. This requires counsel who understands the system and the timing.
What to Do Right Now
One rule above everything else.
Never talk to federal agents about a PPP loan without a lawyer present.
This sounds obvious. But people do it constantly. They think cooperation will help. They think they can explain. They think the agents are just gathering information.
The agents are building a case.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction is a separate federal charge and will be used against you.
- Don't discuss the matter with others who may have been involved. Those conversations can become evidence.
- Don't make voluntary payments to the SBA without counsel. It 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 the Northern District of Illinois. 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.
When Your Ready
If you're in Cook County - or anywhere in the Chicago area - and your facing a PPP loan fraud investigation, 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 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 Northern District of Illinois?
The statute of limitations runs until 2030 or 2031. The government has time. But the assembly line is moving fast. 45% faster then it was two years ago. The earlier you have counsel, the more leverage exists.
Call us at 888-997-4071.
Were here when you need us.
