Houston PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Houston did - the government was throwing money at businesses during the pandemic, and you needed it. You filled out the application, got approved, used the funds. Maybe some of that money went places it wasn't supposed to go. Years passed. You moved on. You figured the government had moved on too.
It hasn't.
The federal government turned PPP prosecution into an assembly line - and Houston is the main factory floor. The Southern District of Texas has prosecuted one of the largest PPP fraud conspiracies in the entire country. U.S. Attorney Alamdar S. Hamdani called it out personally. 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 Houston and throughout the Southern 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 options exist.
Houston Is Ground Zero
Most people assume Houston is too big. Too many businesses got PPP money. The feds can't possibly chase everyone down.
That assumption is wrong.
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. 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 to this.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
The Southern District of Texas covers Houston, Galveston, Brownsville, Corpus Christi, and surrounding areas. This is one of the busiest federal districts in the country for white-collar prosecution. And when it comes to PPP fraud, SDTX has been making national headlines.
The SBA Office of Inspector General has recieved more than 238,000 hotline calls since the pandemic began - a 19,500% increase over prior years. From those, investigators identified more than 40,000 actionable complaints. If a disgruntled employee, ex-business partner, or competitor called that hotline about your PPP loan, that complaint went directly to investigators. And there still working through the backlog.
The Prosecution Machine That Never Stops
The numbers are stark. According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 defendants have been found guilty (82%)
- 1,741 recieved prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years
More than 440 defendants were ordered to pay $1 million or more in restitution. The COVID-19 Fraud Enforcement Task Force has recovered more than $1.4 billion.
These aren't just numbers. This is an assembly line.
But what does that look like in Houston? Real people. Real sentences.
Amir Aqeel (Houston, 2024): Sentenced to 15 years in federal prison for leading a $20+ million PPP fraud conspiracy. He orchestrated 75 fraudulent applications with at least 14 co-conspirators. U.S. Attorney Hamdani called it "one of the largest PPP conspiracies in the country." Ordered to forfeit $5,583,111.48. Thats your federal district.
Khalia Douglas (Houston, February 2025): 24 months in federal prison for filing over $500,000 in fraudulent disaster relief loans. Also committed FEMA fraud and unemployment fraud in Kansas. Ordered to pay $318,361.11 in restitution.
Jacob Liticker (Houston, October 2024): 24 months for coordinating 86 fraudulent PPP loan applications totaling more than $870,000. Many of the recipients were in South Carolina - he ran this operation from Houston.
The $20M Ring (Houston area, 2024): Six men sentenced - Hamza Abbas got 44 months, the Uddin brothers got 18 months each, Syed Ali got 24 months, Muhammad Anis got 21 months, Jesus Acosta Perez got 12 months and a day. They cashed more then 1,100 fake paychecks at a Houston discount store for over $3 million in fraudulent PPP proceeds.
Those are your neighbors.
You might think the big sentences are for million-dollar schemes. That small loans dont get FBI attention. The DOJ has charged defendants for amounts as low as $21,000. A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. The amount dosent protect you. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved.
The sentencing cliff is real. Defendants sentenced in 2024-2025 are recieving sentences aproximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency is completley over. If your under investigation now, you face a very different landscape then someone who was caught in 2021.
The Window Nobody Knows About
Most people don't understand how PPP investigations actualy work. Theres a process, and understanding it changes everything.
When the SBA OIG flags a loan for potential fraud, they don't immediately call the FBI. 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 is leverage that completley disappears once criminal charges are filed.
This window exists.
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. The difference between owing money and going to prison.
The SBA OIG processes cases through a four-step antifraud system: automated screening, data analytics, human reviews, then referral to criminal investigators. At each stage before FBI referral, there are options that evaporate once the case becomes criminal.
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 doesn't make it go away - it can actualy strengthen the government's 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 think. Acting on instinct in this situation is dangerous.
And 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 don't reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations. The more charges, the more pressure to cooperate on their terms.
What To Do If You're Under Investigation
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 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 not on your side.
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 be 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 has handled PPP fraud cases in the Southern District of Texas. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority. That distinction matters more then most people realize.
When Your Ready
If you're in Houston - 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 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 SDTX?
Call us at 888-997-5177. 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.
Don't wait until federal agents show up at your door.
Were here when you need us.
