Indianapolis PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. You're in Indianapolis - or Bloomington, or somewhere in central Indiana - and when the pandemic hit, you did what everyone did. You applied for help. The government was practically begging businesses to take the money. You filled out the forms, got approved, used the funds. Years passed. You assumed the federal government had bigger problems to deal with than your loan.
They didn't.
The federal government turned PPP loan fraud prosecution into an assembly line - and Indianapolis is directly in the crosshairs. The Southern District of Indiana has jurisdiction over central Indiana, and U.S. Attorney Tom Wheeler has made COVID fraud prosecution a stated priority. The 10-year statute of limitations means that 2020 loan you thought was forgotten is prosecutable until 2030. Defendants sentenced in 2024-2025 are receiving sentences 40% longer than those sentenced in 2021-2022 for identical conduct.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Indianapolis and throughout the Southern District of Indiana. If you're under 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 exactly what you're facing and what options still exist.
The Government Has a Decade to Come for You
In August 2022, President Biden signed two laws that changed everything. Most people missed what actualy happened.
The PPP and Bank Fraud Enforcement Harmonization Act extended the statute of limitations from 5 years to 10 years - retroactively. The original 5-year window that would have protected 2020 loans by 2025? Gone. Congress rewrote the rules after the fact, and courts have consistently upheld the change.
That means a PPP loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. If you submitted a fraudulent forgiveness application in 2022, their coming for you until 2032. The government gave itself a decade to come for you. And there using it.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, Secret Service, and SBA OIG. As of early 2025, IRS Criminal Investigation alone had launched 2,039 COVID fraud investigations totaling $10 billion in attempted fraud. Their not slowing down. Their speeding up. The median time from initial referral to indictment has decreased by 45% - what used to take 8-12 months now takes 4-6 months.
Indianapolis Is Not Too Small to Matter
The Southern District of Indiana covers Indianapolis, Bloomington, and the surrounding central Indiana region. You might assume that federal prosecutors in a mid-sized Midwestern district have bigger priorities then PPP loans from five years ago.
That assumption will destroy you.
Recent Southern District of Indiana PPP fraud cases:
- Robert K. Hall (Bloomington, October 2023): Sentenced to 41 months federal prison for conspiracy to steal $668,746 from COVID-19 relief programs. Hall was 73 years old. He retained 20% of fraudulent deposits as compensation, then transferred the rest to co-conspirators via checks and Bitcoin. Judge Richard L. Young sentenced him to prison plus 3 years supervised release.
- Kimberly Dumes (Indianapolis): Former postal employee sentenced to 3 years probation for wire fraud. She submitted two fraudulent PPP applications claiming fake businesses, recieving $41,664 total. She never owned or operated any business.
- Winfield woman (September 2025): Sentenced to 12 months federal prison for PPP loan fraud. Ordered to pay full restitution plus interest - aproximately 40% more than the original loan amount.
U.S. Attorney Tom Wheeler stated publicly: "Federal economic relief programs exist to support Americans in times of crisis, not to be exploited for personal enrichment. Our office will continue to pursue those who defraud these vital programs and undermine public trust in government assistance."
That wasnt a general statement. That was a promise. The Southern District has developed considerable expertise in fraud sentencing due to the concentration of corporate headquarters in the Indianapolis metro area. The judges know these cases. Their not learning on the job anymore.
Why 2025 Sentences Are 40% Longer
Early in the pandemic, some federal judges showed leniency. The economic chaos. The desperation. The confusing guidance from SBA that made honest mistakes genuinely possible. In 2021 and early 2022, some defendants got probation. Some got home confinement. The system seemed to acknowledge that panic decisions during a global crisis deserved some mercy.
Those days are completley over.
Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Same amount stolen. Same type of fraud. Same criminal history. Different year. Different outcome.
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% conviction rate)
- 1,741 received prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- IRS Criminal Investigation achieves a 97.4% conviction rate in prosecuted cases
These arent abstract statistics. This is the machine your walking into if your case proceeds to indictment. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved. The sentencing cliff is real. If your under investigation now, you face a very differant landscape then someone who was caught in 2021.
What Happens When They Start Looking
The PPP itself doesn't have criminal provisions. The CARES Act isn't a penal statute. So how are people going to federal prison in Indianapolis?
The DOJ uses pre-existing fraud statutes to prosecute PPP fraud. One application can trigger multiple 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. Robert K. Hall faced conspiracy to commit wire fraud AND conspiracy to commit money laundering. The government doesn't bring one charge when they can bring five.
But here's what most people don't understand.
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. In Indiana, approximately 40% of PPP investigations with early legal representation result in civil resolutions. Without counsel, 80% proceed to criminal indictment.
That difference isn't luck. It's intervention.
The trap most people fall into: They panic and 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. That Winfield woman didn't just repay - she paid 40% interest on top. Returning the money doesn't make it go away. It can actualy strengthen the governments case against you.
And never - under any circumstances - talk to federal investigators without an attorney present. There have been several recent cases where people who decided to cooperate ended up 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.
Todd Spodek has handled federal fraud cases in the Southern District of Indiana. 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.
When Your Ready
If you're in Indianapolis - or anywhere in central Indiana - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options still 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 SDIN?
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.
Don't wait until federal agents show up at your door.
Were here when you need us.
