Maricopa County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Arizona did - the government was pushing money out the door, and Phoenix-area businesses were scrambling to stay alive. You filled out the application, got approved, used the funds. Years passed. You assumed the feds were focused on New York, Miami, Los Angeles. Arizona felt far from the action.
That assumption is wrong.
The federal government turned PPP loan fraud prosecution into an assembly line - and Maricopa County is not exempt. The District of Arizona has already sentenced PPP defendants to 60-121 months in federal prison. Congress extended the statute of limitations to 10 years in August 2022 - retroactively. That 2020 loan you thought was forgotten? It's prosecutable until 2030. Arizona isn't a flyover jurisdiction for PPP fraud. The DOJ has made that clear.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Maricopa County and throughout the District of Arizona. If you've received contact from the SBA Office of Inspector General, if federal agents have reached out, or if you're simply worried about a PPP loan you obtained years ago - this article explains exactly what you're facing and what options still exist.
The 10-Year Clock Is Still Running
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people in Arizona missed what it actualy did.
It extended the statute of limitations from 5 years to 10 years - and it applied retroactively.
That means a PPP loan from April 2020 is prosecutable until April 2030. A loan from March 2021 is prosecutable until March 2031. The federal government gave itself a full decade to work through its backlog. And they have alot of cases to work through.
Consider the scale in Arizona alone. According to SBA data, Arizona businesses received more than 120,000 PPP loans worth approximately $14.7 billion. On top of that, another 81,000 EIDL loans totaling $7.6 billion. The SBA Office of Inspector General identified more than 95,000 actionable leads nationally - representing, according to there own congressional testimony, "more than 100 years of investigative case work."
Every PPP loan ever issued in Arizona is now subject to prosecution for a full decade from the date of the offense.
The COVID-19 Fraud Task Force coordinates across FBI, IRS Criminal Investigation, HSI, and SBA OIG. The District of Arizona US Attorney's Office launched its own COVID-19 Fraud Task Force in April 2020. They have been actively prosecuting. The results are public record.
What Arizona Defendants Are Actually Getting
Most people assume Arizona is a lower-priority jurisdiction for federal prosecution. New York has the Southern District. Florida has the COVID fraud strike force. California gets the headlines. Arizona must be safer, right?
Their wrong.
Look at what happened to defendants in the District of Arizona:
Kimberly Coleman (Mesa): 120 months - thats 10 years in federal prison. She and her husband Jason submitted approximately two dozen fraudulent PPP applications attempting to obtain more than $30 million. They were successful in ten of those submissions and fraudulently obtained more than $13 million. They bought luxury vehicles, real estate properties, merchandise from high-end retail outlets, vacations, and jewelry.
Jason Coleman (Mesa): 60 months. Five years federal prison. Same scheme as his wife. The couple faced a 62-count indictment charging Conspiracy, Bank Fraud, Wire Fraud, and Transactional Money Laundering.
Sean Swaringer (Peoria): 121 months. Over ten years. He obtained four fraudulent PPP loans totaling more than $1.5 million through two entities - Cryotherapy for Veterans and Cryoworld Therapy. But here's what made it worse: he recruited more than 10 other individuals to apply for fraudulent PPP loans. He assisted in preparing and submitting there applications in exchange for kickbacks from their loan proceeds.
Willie Mitchell (Phoenix): 97 months. Over eight years. He fraudulently obtained seven PPP loans totaling $9,470,900. Used the funds to purchase a vehicle, multiple properties, and vacations.
121 months. Thats over ten years in federal prison. For PPP loans. In Arizona. In the District of Arizona. Not New York. Not Miami. Phoenix and Mesa and Peoria.
And the sentencing trend is getting worse, not better. Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency has completley evaporated. Federal judges now view PPP fraud as theft from taxpayers during a crisis.
The amount dosent protect you either. A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud - March 2025. The federal sentencing guidelines look at various factors, but current practice shows judges including prison time in nearly every PPP sentencing regardless of the amount involved.
One PPP application can trigger multiple federal charges. Wire fraud carries 20-30 years. Bank fraud carries 30 years. False statements to SBA carries 30 years. Money laundering carries 20 years. Aggravated identity theft adds a mandatory 2 years consecutive. The Colemans faced 62 counts. One application creates theoretical exposure exceeding 100 years.
The Window That Disappears
There's something most people dont understand about PPP investigations. There's a window.
Between when the SBA Office of Inspector General flags a loan and when the case gets referred to the FBI for criminal investigation - typically six to twelve months - there is leverage 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 a fine. A False Claims Act settlement. Not pleasant, but not federal prison either.
Look at what happened with Briarwood Country Club in Sun City. The club - a 501(c)(7) nonprofit organization - applied for a PPP loan despite being ineligible under the program rules at the time. They obtained $431,800. When the government came calling, they resolved it civilly. They paid $631,400 under the False Claims Act. No criminal charges. No federal prison.
That option exists. But only during a narrow window.
Now heres the trap that destroys people.
Some people, panicking when they hear about investigations, decide to voluntarily repay the loan. They think returning the money will make the problem go away. It won't. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money dosent make it go away - it can actualy strengthen the government's case against you.
Whether to repay, when to repay, how to structure any resolution - these decisions require counsel who understands how federal prosecutors operate. The wrong move at the wrong time can turn a manageable situation into a federal indictment.
That window slams shut once the FBI has the case. No more civil settlement conversations. Your facing an indictment.
What Happens When You Get the Call
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. Sympathetic even. Their not on your side.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a separate federal charge.
- Don't discuss the matter with others who may have been involved. Those conversations can be used against you.
- Don't make voluntary payments to the SBA without counsel advising you. This can be used as consciousness of guilt.
- Contact a federal defense attorney immediately. The earlier you act, the more options may exist.
Todd Spodek understands the difference between OIG-stage investigations where civil resolution might still be possible, and FBI-stage investigations where criminal defense becomes the priority. He's handled PPP fraud matters in federal court and knows how the District of Arizona operates.
When Your Ready
If your in Maricopa County - or anywhere in Arizona - 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. Theres 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 have played out in the District of Arizona?
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 Coleman couple went from indictment to prison. The earlier you have counsel, the more leverage may exist.
Don't wait until federal agents show up at your door.
Were here when you need us.
