Dallas County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. The government was practically handing out money to keep businesses alive during the pandemic, and you applied. You got approved. You used the funds. Maybe you got forgiveness. Years passed. You assumed everyone had moved on - the government, the banks, the whole thing felt like ancient history.
The Northern District of Texas hasn't moved on.
The federal government turned PPP fraud prosecution into an assembly line, and Dallas County is one of the primary intake points. U.S. Attorney Ryan Raybould for the Northern District of Texas has made pandemic relief fraud a top enforcement priority. His exact words, announcing a recent 10-year prison sentence: "These defendants exploited a national crisis to enrich themselves in this multimillion-dollar, taxpayer-funded fraud scheme." That wasn't a statement about one case. That's the position his office takes on every PPP fraud referral that crosses his desk. The 10-year statute of limitations means your 2020 loan is prosecutable until 2030. Your 2021 loan until 2031.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Dallas County and throughout the Northern District of Texas. If you're facing an investigation, if you've received a letter from the SBA Office of Inspector General, or if federal agents have shown up asking questions - this article explains what you're actually dealing with. Not reassurances. Not best-case fantasies. The reality of PPP prosecution in NDTX in 2025.
The Northern District of Texas Isn't Business-Friendly When It Comes to PPP
Texas has a reputation for being business-friendly. Light regulation. Low taxes. A general sense that the government leaves people alone. That reputation means nothing in federal court. The Northern District of Texas operates under federal law, not Texas law. And under federal law, the PPP and Bank Fraud Enforcement Harmonization Act of 2022 extended the statute of limitations from 5 years to 10 years - retroactivley.
That extension happened in August 2022. It applies to every PPP loan ever issued. A loan from April 2020 is prosecutable until April 2030. A loan from March 2021 is prosecutable until March 2031. Congress didnt accidentally give prosecutors a decade. They did it becuase the SBA Office of Inspector General had identified over 95,000 "actionable leads" representing what they called "more than 100 years of investigative case work." The government has more fraud to prosecute than it can handle. So they gave themselves time.
Every PPP loan issued to a Dallas-area business is prosecutable for a full decade from the date of the offense.
As of December 31, 2024, according to Pandemic Oversight, federal prosecutors nationwide had charged 3,096 defendants with pandemic relief fraud. Of those, 2,532 were found guilty - thats an 82% conviction rate. Of the convicted defendants, 81% recieved prison time. Not probation. Not home confinement. Federal prison.
What Dallas-Area PPP Prosecutions Look Like in 2025
The statistics are national. But the cases are local. And the Northern District of Texas has been particuarly aggressive.
In June 2025, seven members of the same Dallas-area family pleaded guilty together. Lori Jackson, 63. Saidrick Jackson, 61. Saidrick Jackson II, 36. Saundria Jackson, 36. D'Andria Todd, 46. Bianca Williams, 33. Valencia Williams, 53. Parents, children, siblings. Each submitted PPP applications claiming to be sole proprietors with approximately $8,000 in monthly payroll. Each recieved federal funds for businesses that didn't exist. Each now faces up to five years in federal prison.
Seven family members. All guilty. All facing prison.
This wasn't a massive criminal organization. This was a family who saw an opportunity during the chaos of the pandemic and took it. And now there all going through the federal criminal system together.
That's not the only case. Look at what's happened in NDTX in 2025:
- Tamara Starks (Mansfield, January 2025): Sentenced to 86 months - more than 7 years - for a $8.5 million PPP fraud scheme. She created fake payrolls through third-party vendors. Judge Mark Pittman ordered $4.4 million in restitution.
- Stephanie Hockridge (November 2025): Co-founder of Blueacorn, sentenced to 10 years federal prison for facilitating $63 million in fraudulent PPP loans. She was a former TV news anchor. The court ordered over $63 million in restitution.
- Shantelle Hawkins (DeSoto, June 2025): 41 months federal prison for submitting 17 fraudulent PPP applications. Ordered to pay over $1.8 million in restitution and forfeit property bought with fraud proceeds.
- Dinesh Sah (Coppell): More than 11 years federal prison for a $24.8 million scheme. Used the money to buy multiple homes in Texas, pay off mortgages in California, and purchase a Bentley, Corvette, and Porsche.
The sentences are getting longer, not shorter. Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. The early pandemic leniency - judges acknowledging economic chaos, desperation, confusing guidance - thats completley over.
And its not just big frauds. In May 2024, a former Dallas County prosecutor was indicted for $20,800 in PPP fraud. Thelma Anderson was working in the Dallas County DA's office when she submitted her application. She allegedly used the funds for rent, food, and entertainment. Twenty thousand dollars. Personal expenses. A prosecutor. If they'll charge a prosecutor for that amount, they'll charge anyone.
The Window That's Closing Every Day
Most people don't understand how PPP investigations actually work.
There's a pipeline. The SBA Office of Inspector General uses data analytics and machine learning to flag suspicious applications. When they identify a potentially fraudulent loan, they conduct their own review. Theres typically a window - six to twelve months - between when OIG flags your file and when the case gets referred to the FBI or IRS Criminal Investigation for criminal prosecution.
During that OIG review window, options exist that completley disappear once criminal charges are filed. A skilled defense attorney may be able to negotiate a civil disposition. Repayment of the loan plus a fine. Maybe a False Claims Act settlement. Not pleasant. But not a federal felony conviction either. Not prison. Not a criminal record that follows you for life.
Once the FBI gets involved, those options narrow dramaticaly. Your in criminal defense mode. The question becomes minimizing damage, not avoiding it entirely.
Most people miss the window becuase they don't know it exists. They get a letter from OIG and panic. They call the number on the letter and try to explain. They voluntarily repay the loan hoping it makes the problem disappear.
Each of those instincts makes things worse.
The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money dosent make you look innocent. It makes you look like someone who knew they did something wrong and tried to fix it after getting caught. The government can use that against you.
Talking to investigators without counsel frequently results in additional charges. Not fewer. There have been recent cases were people who cooperated without a lawyer ended up charged with obstruction or making false statements to federal agents - on top of the underlying PPP fraud. The agents seem friendly. Understanding. Their not on your side.
This is complicated. The timing matters. Whether to engage, how to engage, what to say and what not to say - these decisions require counsel who understands how federal prosecutors think and what leverage exists at each stage.
What You Should Do Right Now
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 its the mistake people make over and over. They think explaining will help. They think being cooperative will make the government see them as good people who made honest mistakes. What actualy happens is every word becomes evidence. The friendly agent is taking notes. Building a case. Looking for inconsistencies.
If you're 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 have been 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 handles PPP fraud cases in the Northern District of Texas. 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. He knows what prosecutors in NDTX are looking for, how they build cases, and where the leverage points are.
When You're Ready
If your in Dallas County - or anywhere in the Northern District of Texas - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand.
The consultation is free. Theres no obligation.
What you'll get is an honest assessment. Has OIG flagged your file? Has the case been referred to FBI? What does the evidence look like? What are realistic outcomes - not fantasy scenarios, but actual possibilities based on how these cases play out in NDTX?
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. They're processing these cases systematically. The Jackson family. The Mansfield businesswoman. The former prosecutor. These arent isolated examples. This is the assembly line.
The earlier you have counsel, the more leverage exists. The window between OIG flag and FBI referral is where outcomes get determined. Don't wait until federal agents show up at your door.
We're here when you need us.
