Louisville PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Louisville did - the government was handing out money to any business that could fill out an application during the pandemic. You got approved, used the funds, maybe even got forgiveness. Years passed. You moved on. You figured the government had moved on too.
It hasn't. And Louisville is worse than you think.
The federal government turned PPP loan fraud prosecution into an assembly line - and the Western District of Kentucky is handing out sentences that are six months longer than the Eastern District for identical conduct. Congress extended the statute of limitations to 10 years in August 2022. That 2020 loan you thought was forgotten? Its prosecutable until 2030. And Kentucky has 4.2% of national PPP prosecutions despite being only 1.3% of the population. This state is being made an example of.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Louisville and throughout the Western District of Kentucky. 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 at your door - this article explains exactly what you're facing and what options might still exist.
The Federal Government Is Still Coming For Louisville
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act - H.R. 7352. 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 every bit of it. As of December 2024, the DOJ continues to treat PPP fraud as a top enforcement priority. The Western District of Kentucky is part of the COVID-19 Fraud Strike Force. US Attorney Russell Coleman has made pandemic fraud cases a centerpiece of his office's work.
Heres the part that should worry you if your in Louisville.
Kentucky has 4.2% of national PPP fraud prosecutions despite representing only 1.3% of the US population. Thats more than three times the rate you'd expect. According to Pandemic Oversight, through December 31, 2024, federal prosecutors have charged 3,096 defendants with pandemic relief fraud. Of those, 2,532 were found guilty - an 82% conviction rate. And 81% of those convicted recieved prison time.
This isn't a problem that's going away. The prosecution machine is accelerating.
Louisville Is Harsher Than You Think
Kentucky has two federal districts. The Western District, headquartered in Louisville, covers Louisville, Bowling Green, Owensboro, and Paducah. The Eastern District, headquartered in Lexington, covers the rest of the state. Each has its own US Attorney, its own judges, its own sentencing patterns.
Most people assume federal sentences are uniform. There just numbers on a guidelines chart, right?
Wrong.
For PPP fraud cases involving loans between $150,000 and $500,000, the Western District of Kentucky averages 18-24 months in federal prison. The Eastern District of Kentucky averages 12-18 months for identical conduct. Thats a six-month difference on average - based purely on which courthouse your case lands in.
Your facing the Western District. That geography is going to cost you half a year of freedom compared to a defendant in Lexington who did exactly what you did.
The reasons are complex - different judicial philosophies, different docket pressures, different US Attorney priorities. But the outcome is simple. Louisville is one of the harshest districts in the country for PPP fraud sentencing. And the defendants sentenced in 2024-2025 are recieving sentences 40% longer then defendants sentenced for identical conduct in 2021-2022.
The sentencing cliff is real. Early pandemic leniency is completly over.
What Louisville Defendants Actually Face
Real Louisville cases. Real names. Real sentences.
Recent Western District of Kentucky PPP fraud cases:
- Andrew Prell (Louisville): Between March 2020 and August 2022, Prell filed one fraudulent EIDL application and two fraudulent PPP applications through "Convergence of 4 Dimensions" LLC, resulting in the theft of $1,687,033. He used the funds for gambling and personal expenses. He faces a maximum sentence of 120 years in federal prison.
- Darlene McCoy (Louisville): Between June 2020 and September 2021, McCoy filed one fraudulent EIDL application and three fraudulent PPP applications through "Letz Get It Crackin" LLC and "Reds Creative Events." She exaggerated employees and payroll. She stole $165,416 and also applied for forgiveness on all three PPP loans. She faces a maximum of 130 years.
- Blake Patterson (Louisville): Between August 2020 and October 2021, Patterson filed eleven fraudulent CARES Act applications resulting in the theft of $133,802 and attempted theft of an additional $608,704. He created et Propellente, Darke Rose, and Link LLC after the pandemic started specifically to file fraudulent applications.
- Martez Johnson (Louisville): Sentenced in January 2025 to 46 months federal prison for $1.8 million EIDL fraud. Ordered to pay full restitution.
And heres the paradox that catches people off guard.
Kendarian Quentrell Dixon was an Army soldier stationed at Fort Campbell, Kentucky. He filed one fraudulent PPP application and recieved $20,833. Thats it. Twenty thousand dollars. He's now facing federal charges with a maximum sentence of 40 years.
The amount doesn't protect you.
The charge stacking is how they get you. One PPP application can trigger five seperate federal charges: Wire fraud under 18 U.S.C. § 1343 carries 20-30 years. Bank fraud under 18 U.S.C. § 1344 carries 30 years. False statements to SBA under 18 U.S.C. § 1014 carries 30 years. Money laundering carries 20 years. Aggravated identity theft adds a mandatory consecutive 2 years.
Andrew Prell's maximum exposure is 120 years. Darlene McCoy's is 130 years. One application. Multiple charges. Massive theoretical exposure that gives prosecutors enormous leverage in plea negotiations.
And every single Kentucky PPP fraud conviction results in restitution. 100% of them. Woods, an Elizabethtown woman, was sentenced to 2 years and 9 months plus $1,318,988 in restitution. You dont just do the time. You pay back every dollar - with interest sometimes.
Your Options Before Its Too Late
Theres a window. Most people dont know it exists.
Between when the SBA OIG flags your loan application and when the case gets referred to the FBI for criminal investigation, theres typically a six to twelve month period. During this window, leverage exists that completley disappears once criminal charges are filed.
But that window is shrinking.
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 government has gotten faster. More efficient. More ruthless.
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. Its not pleasant, but its not a federal felony conviction either.
Now - to be fair - early cooperation still works.
A Bowling Green medical supply distributor facing $1.2 million in charges cooperated early and received 18 months when sentencing guidelines called for 36-48 months. That's a 50% reduction. Cooperation matters.
But that 50% reduction only matters if you act during the OIG window. Once the FBI takes over the investigation, once the case gets referred for prosecution, that leverage evaporates. The path to civil resolution closes. You're in criminal defense mode.
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 in the Western District 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. Helpful. They're building a case.
Don't destroy any documents. Document destruction can become 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 counsel. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt.
Todd Spodek has handled PPP fraud cases in the Western District of Kentucky. He understands the difference between OIG-stage investigations where civil resolution may still be possible, and FBI-stage investigations where federal criminal defense is the only option. He understands why Louisville sentences run longer than Lexington. He knows what leverage exists and when it disappears.
When You're Ready
If you're in Louisville - or anywhere in the Western District of Kentucky - 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. There's no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage where civil resolution might work? 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 Western District specifically?
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. But once they move, things happen fast. The earlier you have counsel, the more leverage exists.
The window is shrinking. Don't wait until federal agents show up at your door.
We're here when you need us.
