Franklin County 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 federal government turned PPP loan fraud prosecution into an assembly line - and Franklin County is directly in the crosshairs. The Southern District of Ohio has jurisdiction over Columbus and the surrounding area, and they've been handing out sentences as harsh as any district in the country. Lorie Schaefer from Westerville got 70 months. Kelli Prather from Cincinnati got 84 months. 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 Franklin County 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 still exist.
The Silent Enforcement Machine in Southern Ohio
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. They have strike forces dedicated specificaly to this.
PPP fraud dosent make national headlines from Columbus the way it does from Miami or Manhattan. That doesn't mean it's not happening. It means it's happening quietly. The Southern District of Ohio has been steadily prosecuting PPP fraud cases throughout 2024 and 2025, and the sentences have been severe. Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022.
According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants have been charged with pandemic relief fraud. 2,532 have been found guilty - thats an 82% conviction rate. Of those convicted, 81% received prison time. Not probation. Prison.
The silent machine is running.
Real Names, Real Sentences: What's Happening in Franklin County
The Southern District of Ohio covers Columbus, Cincinnati, Dayton, and the surrounding areas - including Franklin County. This is were your case would be prosecuted if federal agents come knocking.
Recent SDOH PPP fraud cases:
- Lorie Schaefer (Westerville, June 2025): Sentenced to 70 months federal prison for $1.89 million PPP fraud. She falsely claimed to own a pizza restaurant with 98 employees. Used the funds to purchase and renovate a Westerville condominium. Ordered to pay $2.3 million in restitution.
- Kelli Prather (Cincinnati, April 2024): Convicted at trial and sentenced to 84 months - thats seven years in federal prison. One of the longest PPP fraud sentences in the district.
- Joseph Lentine III (Cincinnati, January 2025): Sentenced to 63 months for a $450,000 PPP fraud scheme. He was the ringleader. Used the money to buy a yacht and a Mercedes. Ordered to pay $1.2 million in restitution.
- Ajay and Ruhi Chawla (Columbus area, March 2025): Charged with fraudulently obtaining more than $900,000 through four PPP loans and three EIDL loans. Case pending.
These arent hypotheticals. These are real people from your area. Westerville is 15 minutes from downtown Columbus. The Chawlas were charged in 2025 - five years after the pandemic started. The government is patient. And there not slowing down.
The $21,000 Case That Should Terrify You
"Do people actualy go to prison for a $20,000 PPP loan?"
Yes.
Kelton McClarrin got 18 months in federal prison for $21,000 in PPP fraud. March 2024. Not $2 million. Not $200,000. Twenty-one thousand dollars. He used the money for jail commissary services, CashApp, GrubHub, and DoorDash.
The amount doesn't protect you.
Federal judges in SDOH include prison time in nearly every PPP sentencing regardless of the amount involved. This isnt about proportionality. Its about deterrence. The government wants headlines. They want other people who committed PPP fraud to see these sentences and worry.
And heres were it gets worse. One PPP application can trigger multiple federal charges:
- Wire Fraud (18 U.S.C. § 1343) - 20-30 years
- Bank Fraud (18 U.S.C. § 1344) - 30 years
- False Statements to SBA (18 U.S.C. § 1014) - 30 years
- Money Laundering (18 U.S.C. § 1956) - 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
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. If your facing multiple counts, the pressure to plead guilty becomes overwhelming.
The Window That Disappears
Most people dont understand this about PPP investigations.
Theres 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. Weather to repay, when to repay, how to structure any resolution - these decisions require counsel who understands how federal prosecutors think.
The single most important rule if your under investigation:
Never agree to discuss a potential PPP fraud case with a federal agent without a lawyer present.
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. Their not on your side.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction can become a seperate 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 immediatly. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases in the Southern District of Ohio. He understands the difference between OIG-stage investigations were civil resolution may be possible, and FBI-stage investigations were criminal defense is the priority.
When Your Ready
If your in Franklin County - or anywhere in the Southern District of Ohio - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand were 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 were 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 SDOH?
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.
