Harris County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. The government was handing out money to keep businesses alive during the pandemic, and you applied like everyone else. The application got approved, the funds hit your account, you used them however made sense at the time. Years passed. You figured the government had bigger problems to worry about than chasing down pandemic loans from five years ago.
It hasn't moved on.
The federal government turned PPP fraud prosecution into something that looks more like an assembly line than a legal process - and Harris County sits squarely in the Southern District of Texas, one of the most aggressive prosecution districts in the country for these cases. Congress extended the statute of limitations to 10 years in 2022. That means a loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. The FBI Houston Field Office created a dedicated task force back in 2020 specifically for PPP fraud, and they're still working through thousands of potentially fraudulent loans with no signs of slowing down.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Harris County and throughout the Southern District of Texas. If you've received contact from federal agents, if the SBA Office of Inspector General has sent you a letter, or if you're worried that a loan from 2020 might come back to haunt you - this article explains exactly what you're facing and what options still exist.
The Prosecution Machine Hasnt Stopped
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people completley missed what it did.
It extended the statute of limitations from 5 years to 10 years - and it applied retroactively. A 2020 PPP loan is prosecutable until 2030. A 2021 loan until 2031. Courts have upheld this extension as constitutional because it doesn't create new crimes or increase punishments - it just gives prosecutors more time to bring charges. The government gave itself a full decade. And there using every bit of it.
According to Pandemic Oversight, as of December 31, 2024, the DOJ has charged 3,096 defendants with pandemic relief fraud. Of those, 2,532 have been found guilty - an 81.8% conviction rate. Of those convicted, 1,741 recieved prison time. Thats 81% getting actual prison sentences, not probation. IRS Criminal Investigation has obtained a 97.4% conviction rate in prosecuted COVID fraud cases.
The FBI Houston Field Office created a dedicated task force for PPP fraud investigations back in 2020. There still working through thousands of potentially fraudulent loans. The SBA Office of Inspector General has refered approximately 54,000 PPP loans to there investigations division with complete case memos and supporting documentation. Another 77,000 loans were escalated internally for additional review. As of May 2024, they hadnt completed reviewing 37,938 loans totaling about $4.6 billion. The backlog is enormous, but they're working through it.
What Houston Prosecutions Actually Look Like
U.S. Attorney Alamdar Hamdani called the Amir Aqeel case "one of the largest PPP conspiracies in the country."
Amir Aqeel, a 54-year-old Houston resident, was sentenced in October 2024 to 15 years in federal prison. Fifteen years. He helped at least 14 other individuals submit more than 75 fraudulent PPP loan applications for approximately $20 million in forgivable loans. The applications falsified employee numbers and average monthly payroll expenses. They included fraudulent bank records and fake federal tax forms. He recieved kickbacks and created false documents for co-conspirators. They laundered proceeds by writing checks to fake employees, which were then cashed at check cashing businesses.
Six of his co-conspirators were also sentenced. Hamza Abbas of Richmond got 44 months. Ammas Uddin and Arham Uddin, also of Richmond, each got 18 months. Syed Ali of Sugar Land recieved 24 months. Muhammad Anis and Jesus Acosta Perez of Houston got 21 months and 12 months respectively.
In a seperate case, Abdul Fatani of Richmond was convicted after trial for wire fraud and money laundering as part of a $35 million conspiracy involving 15 defendants across two states. They submitted more than 80 fraudulent applications, seeking over $35 million and obtaining aproximately $18 million. Fatani faces up to 30 years.
Maybe your thinking: "But those are massive fraud rings. My situation was one small loan."
Consider this. A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. Twenty-one thousand dollars. Jacob Liticker of Houston was sentenced to 24 months for leading a scheme involving $807,990. The amount dosent protect you. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing regardless of the loan size.
How One Application Becomes Five Charges
The PPP itself doesn't have criminal provisions. The CARES Act isn't a penal statute. So how are people going to federal prison for pandemic loans?
The DOJ uses pre-existing fraud statutes. 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. Theoretical exposure exceeding 100 years. In practice, sentences dont reach that level. But charge stacking gives prosecutors enormous leverage in plea negotiations. They can offer to drop some charges in exchange for a guilty plea on others. That kind of leverage changes the entire dynamic of how these cases get resolved.
Ebone Myrriah Mott of Houston was indicted on 18 counts. She allegedly created fictitious companies, prepared falsified records, and submitted applications on behalf of co-conspirators - charging them approximately $200 upfront plus 10% of the payouts. She faces up to 20 years per count.
The Window That Changes Everything
Most people dont understand the investigation timeline for PPP fraud.
The SBA Office of Inspector General is the first step. They review loans, flag anomalies, build case files. Aproximately 54,000 loans have been referred to them with complete documentation. Tens of thousands more remain under internal review.
Theres a window - typically six to twelve months - between when OIG flags a loan and when the case gets referred to the FBI or IRS Criminal Investigation for criminal prosecution. During this window, options exist that completley disappear once criminal charges are filed.
During the OIG review stage, a skilled defense attorney may be able to negotiate a civil disposition. Repayment plus administrative penalties. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either. Once the case goes criminal, that path closes.
But heres the trap most people fall into.
Some people, panicking, voluntarily repay the loan thinking it makes the problem go away. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Your trying to help yourself. You might be handing them evidence.
And talking to investigators? Theres been multiple cases in Houston where people who talked to federal agents without counsel ended up charged with obstruction or making false statements - in addition to the underlying PPP fraud. The agents seem friendly. Cooperative. Understanding. There building a case.
If you're under investigation or worried you might be:
- Dont destroy any documents. Document destruction becomes a separate charge.
- Dont discuss with anyone else who might be involved. Those conversations can be used against you.
- Dont make voluntary payments without counsel reviewing whether it helps or hurts.
- Contact a federal defense attorney immediately. The earlier, the more options.
Todd Spodek has handled PPP fraud cases in federal court. He understands the difference between an OIG review stage where civil resolution may be possible, and a criminal referral stage where defense strategy becomes the priority.
When Your Ready
If you're in Harris County - or anywhere in the Southern District of Texas - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you actually stand.
The consultation is free. Theirs no obligation. What you'll get is an honest assessment. Is this still at the OIG stage where negotiation might work? Has it been referred for criminal prosecution? What does the evidence look like? What are realistic outcomes based on how SDTX handles these cases - not best-case fantasies, but actual possibilities?
Call us at 888-997-4071. The statute of limitations runs until 2030 or 2031 depending on when you got the loan. The government has time. They have resources. The FBI task force in Houston shows no signs of slowing down. The earlier you have counsel, the more leverage exists.
Dont wait until agents show up at your door.
Were here.
