Dallas PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everybody in Dallas did - the government practically begged businesses to take the money during the pandemic. You filled out the application, got approved, used the funds, maybe even got forgiveness. Years passed. You moved on with your life. You assumed the federal government had moved on too.
It hasn't.
The federal government turned PPP loan fraud prosecution into an assembly line - and Dallas is ground zero. The Northern District of Texas has already sentenced defendants to 7-15 years in federal prison, and they're not slowing down. Congress extended the statute of limitations to 10 years. That 2020 loan you thought was forgotten? It's prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Dallas and throughout the Northern District of Texas. 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 realistic options exist.
The Federal Government Is Still Coming for PPP Fraud
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people completely 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 through the COVID-19 Fraud Enforcement Task Force. They have strike forces dedicated to this. Including one covering the Northern District of Texas.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
According to Pandemic Oversight, through December 31, 2024: 3,096 defendants have been charged with pandemic relief fraud. Of those, 2,532 were found guilty - an 82% conviction rate. Of the convicted, 1,741 recieved prison time. Thats 81%. Not probation. Prison.
The investigation timeline has gotten faster too. What used to take 8-12 months from initial referral to indictment now takes 4-6 months. A 45% acceleration. The government has gotten more efficient at prosecuting PPP fraud, not less.
Dallas Is Ground Zero
The Northern District of Texas covers Dallas, Fort Worth, and 100 counties across North and West Texas. Its one of the largest federal districts in the country. And its been particuarly aggressive on PPP fraud.
Tamara Starks - a Mansfield businesswoman, maybe 45 minutes from downtown Dallas - got 86 months in federal prison. Thats over 7 years. For PPP fraud. She created and submitted more then 100 fraudulent applications and recieved approximately $4.5 million in fraud proceeds. Judge Mark Pittman sentenced her in January 2025 and ordered $4.4 million in restitution.
Andrew Travis Johnson from Lubbock got 15 years. Federal prison. For $4 million in PPP fraud across 27 loans. He bought luxury cars and Patek Philippe watches with the money. The court ordered him to pay $4.15 million in restitution and forfeit the assets.
The Jackson Family - seven Dallas-area family members prosecuted together in June 2025. They submitted false applications claiming to operate sole proprietorships with $8,000 monthly payrolls. Fabricated tax documents. Fake businesses - a beauty salon, a childcare center, a youth sports league. None of it real. Each person got over $20,000 in fraudulent PPP funds. Each person now faces up to 5 years in federal prison.
An entire family. Seven people. All facing federal prison. For PPP fraud.
Shantelle Hawkins from DeSoto - just south of Dallas - got 41 months for submitting 17 fraudulent applications totaling $1.8 million. Sentenced June 2025.
And then theres the Blueacorn case. Stephanie Hockridge and Nathan Reis - the co-founders of a PPP lender service provider - each got 10 years federal prison for processing over $63 million in fraudulent PPP loans. There company processed applications for people across the country, including Texas.
These arent hypothetical cases. These are real people from the Dallas area sitting in federal prison right now - or heading there soon.
The Only Window That Matters
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.
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 in the Northern District of Texas think. Weve seen cases were people who tried to handle it themselves made there situation dramaticaly worse.
The charge stacking is another issue people dont fully grasp. One PPP application can trigger multiple federal charges:
- Wire Fraud (18 U.S.C. § 1343) - up to 20-30 years
- Bank Fraud (18 U.S.C. § 1344) - up to 30 years
- False Statements to SBA (18 U.S.C. § 1014) - up to 30 years
- Money Laundering (18 U.S.C. § 1956) - up to 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
One application. Five potential charges. Theoretical exposure exceeding 100 years.
The practical sentences dont reach that level. But the charge stacking gives prosecutors enormous leverage in plea negotiations. It's why Andrew Johnson got 15 years and Tamara Starks got 86 months. The government can pile on charges until the math makes fighting at trial seem impossible.
What Dallas Residents 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 there have been several recent cases were 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. Theyre not on your side.
Your instinct is to explain. To clarify. To show your a good person who made a mistake. Dont. Every word becomes evidence. Every statement can be used to build additional charges. There are no casual conversations with federal investigators.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction can become a separate charge.
- Dont discuss the matter with others who may be involved. Those conversations can be used against you.
- Dont 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 courts across the country. 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 Your Ready
If your in Dallas - or anywhere in the Northern District of Texas - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options exist.
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 Texas?
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.
Dont wait until federal agents show up at your door.
Were here when you need us.
