Las Vegas PPP Loan Fraud Lawyers
You got a PPP loan during the pandemic. Maybe 2020, maybe 2021. The application took ten minutes. The money hit your account within days. You used it for payroll, for rent, for keeping the lights on. Or maybe you used it for other things. Years passed. The pandemic ended. You moved on with your life.
It's not over.
The federal government turned PPP fraud prosecution into an assembly line - and the District of Nevada just became one of the harshest districts in America. Meelad Dezfooli of Henderson was sentenced to over 15 years in federal prison for PPP fraud. That's one of the longest sentences anywhere in the country. 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 Las Vegas and throughout the District of Nevada. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, or if you're simply worried about a loan application you filed years ago - this article explains what you're actually facing.
The Assembly Line Is Still Running
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people have no idea what it actualy did.
It extended the statute of limitations from 5 years to 10 years - and it did so retroactively.
A PPP loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031. The government gave itself a full decade to build cases, and there using every day of it. As of December 2024, the DOJ continues investigating PPP fraud as a top enforcement priority. The COVID-19 Fraud Enforcement Task Force coordinates FBI, IRS Criminal Investigation, SBA OIG, and Secret Service resources dedicated specificaly to this.
The numbers are staggering. According to Pandemic Oversight, through December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 have been found guilty (82% conviction rate)
- 1,741 received prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
Heres the part most people miss: the investigation timeline has gotten dramatically faster. The median time from initial referral to indictment has decreased by 45% compared to 2022-2023. What used to take 8-12 months now takes 4-6 months. The machine is getting more efficient. Not less.
The District of Nevada Is Making Examples
Meelad Dezfooli of Henderson, Nevada was sentenced in August 2025 to over 15 years in federal prison. That's 188 months. For PPP fraud. One of the longest sentences in America for this crime.
Look at what he did. After recieving more than $11 million in fraudulent PPP loans, Dezfooli laundered the money by purchasing approximately 25 properties across Nevada. He used the alias "James Dez" and a fictitious entity called "Holdings Trust." He gambled extensively at Las Vegas casinos. He bought luxury cars. And heres were it gets worse - even after he was indicted, he continued laundering money. He kept selling properties he'd purchased with stolen PPP funds.
The government seized everything. $11.2 million in forfeiture. Two vehicles. Five properties. On September 4, 2024, a jury found him guilty on 10 counts: three counts of bank fraud, three counts of money laundering, four counts of conducting transactions with criminally derived property. The judge showed no mercy.
But Dezfooli wasn't the only one.
Other District of Nevada PPP fraud sentences:
- Brandon Casutt: 28 months in federal prison for $500,000 in PPP/EIDL fraud. He laundered the money through family and friends, writing fake "pandemic pay" checks. Used the proceeds to buy a house in Henderson.
- Jaquari Davonte Woodward: 19 months for submitting 56 fraudulent PPP applications totaling $1.1 million. After getting $20,833 for himself, he advertised on social media and charged others $10,000 to submit fraudulent apps for them.
- Karen Chapon: 30 months for fraudulently seeking over $1 million across six PPP applications. She lied about her prior felony conviction on the applications.
- Shavonte Hill: 30 months for $42,000 in fraud. He committed the fraud while already on federal supervised release.
The amount doesn't determine whether you go to prison. Shavonte Hill got 30 months for $42,000. Federal judges in 2025 are including prison time in nearly every PPP fraud sentencing, regardless of the loan size.
How One Application Becomes Five Federal 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?
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 federal prosecutors enormous leverage in plea negotiations. When your facing wire fraud, bank fraud, and false statements charges - each carrying decades of potential prison time - the pressure to plead becomes immense.
Dezfooli was convicted on 10 counts. That's how it works. They don't charge you with one thing. They charge you with everything they can prove.
What to Do If Your Under Investigation
Theres a window most people dont know about.
Between when the SBA Office of Inspector General flags your loan and when the case gets referred to the FBI for criminal prosecution - there's typically six to twelve months. During this window, leverage exists 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 penalties. A False Claims Act settlement. Not pleasant - but not a federal felony conviction either. Not prison.
But here's the trap most people fall into.
Some people, panicking, decide to voluntarily repay the loan thinking it will make everything 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 disappear - it can actualy strengthen the government's case against you.
Others decide to talk to investigators. To explain there side of the story. To clear things up. There have been several recent cases were people who talked to federal agents without a lawyer ended up charged with obstruction or making false statements - 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:
- Don't destroy any documents. Document destruction becomes a separate federal 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 consulting counsel first.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases in federal court. 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 Las Vegas, Henderson, North Las Vegas, Reno, or anywhere in Nevada facing a PPP loan fraud investigation - Spodek Law Group can help you understand where you stand and what options actually exist.
The consultation is free. Theres no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage? 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 District of Nevada?
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. Dezfooli shows what happens when the District of Nevada decides to make an example.
Don't wait until federal agents show up at your door.
Were here when you need us.
