Miami-Dade County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone did - the government was practically forcing money into business bank accounts during the pandemic. You filled out the application, got approved, used the funds, maybe even got forgiveness. Years have passed now. You assumed the government moved on to other priorities.
They didn't. And if you're in Miami-Dade, you're in the epicenter.
The federal government turned PPP loan fraud prosecution into an assembly line - and South Florida is headquarters. On September 15, 2022, the Attorney General selected the Southern District of Florida to lead one of only three national COVID-19 Fraud Strike Force Teams. The 10-year statute of limitations means that 2020 loan you thought was forgotten is prosecutable until 2030. Miami-Dade didn't just have PPP fraud. Miami-Dade is where the government decided to build its command center.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Miami-Dade County and throughout the Southern District of Florida. 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 still exist.
The Strike Force Is Real
Most people don't understand what happened in September 2022. The Attorney General didn't just announce another task force. He designated the Southern District of Florida - the federal jurisdiction covering Miami-Dade - to lead one of three national COVID-19 Fraud Strike Force Teams.
This wasnt symbolic.
South Florida became the headquarters for coordinated national enforcement. The Strike Force teams are responsible for indicting more than 250 defendants since designation - including organized fraud rings, gang members running PPP schemes, and sophisticated operations spanning multiple states. When your hearing about PPP arrests across the country, theres a good chance the coordination came from the SDFL office.
And then Congress extended the statute of limitations. In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. It extended prosecution timelines from 5 years to 10 years - retroactively. A PPP loan from 2020 is now prosecutable until 2030. A loan from 2021 until 2031.
The government gave itself a decade.
The SBA Office of Inspector General has received more than 250,000 hotline complaints. There data analytics identified more than 95,000 actionable leads - representing, according to their own testimony, "more than 100 years of investigative case work." As of the latest reporting, they had hundreds of ongoing investigations. The silence since your PPP application wasn't the government losing interest. It was you waiting in a queue that's being worked systematically.
Why Miami-Dade Is Ground Zero
Your probably wondering why South Florida specifically. The answer is in the numbers.
According to SBA data, Miami-Dade, Broward, and Palm Beach Counties received approximately $20.5 billion in PPP funds. Thats 2.6% of the national total. South Florida's population is about 1.8% of the total national population.
The region received disproportionately more PPP money then its population would suggest.
That disproportion created a data signature.
The governments fraud detection algorithms learn from patterns. When one region shows statistical anomalies - more applications per capita, higher average loan amounts, unusual business formations - the algorithms flag it. South Florida wasnt randomly selected for Strike Force headquarters. The data pointed here. The patterns emerged from here. And the enforcement followed.
If your in Miami-Dade and you got a PPP loan with any irregularities, your not wondering whether you might get caught. Your wondering when your number comes up in a queue thats been running for years.
The SDFL jurisdiction covers Miami-Dade, Broward, Monroe, and portions of Palm Beach, Martin, St. Lucie, Indian River, Okeechobee, and Highlands counties. Every one of those areas is in the crosshairs.
The Machine Behind the Prosecutions
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants charged with pandemic relief fraud
- 2,532 found guilty (81.8% conviction rate)
- 1,741 received prison time (81% of those convicted)
- 2,008 ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years
IRS Criminal Investigation reports a 97.4% conviction rate in prosecuted COVID fraud cases. The average sentence is 31 months in federal prison.
Recent Miami-Dade/South Florida sentences:
- Lazaro Verdecia Hernandez (Miami, April 2025): 15 years federal prison for $14.5 million PPP fraud scheme involving 63 fraudulent applications
- Malaina Chapman (Hialeah, June 2025): 54 months for defrauding multiple COVID relief programs while working for the SBA - spent funds on Louis Vuitton, Chanel, designer puppy
- Luke Joselin (South Florida): 84 months after trial conviction for $2 million PPP fraud, 9 counts wire fraud plus aggravated identity theft
- Wally Dorlus (Margate): 48 months as part of $28 million scheme - filed 170 fraudulent PPP applications as a tax preparer
The amount doesn't protect you.
A Cincinnati defendant received 18 months in federal prison for $21,000 in PPP fraud. March 2025. Federal judges in 2025 include prison time in nearly every PPP sentencing regardless of the amount involved. This isn't about proportionality. It's about deterrence. The government wants headlines.
One PPP application can trigger multiple federal charges: Wire Fraud (18 U.S.C. § 1343) carries 20-30 years. Bank Fraud (18 U.S.C. § 1344) carries 30 years. False Statements to SBA (18 U.S.C. § 1014) carries 30 years. Money Laundering (18 U.S.C. § 1956) carries 20 years. Aggravated Identity Theft (18 U.S.C. § 1028A) adds 2 years mandatory consecutive.
One application. Five potential charges. Theoretical exposure exceeding 100 years. This gives prosecutors enormous leverage in plea negotiations.
The Window Most People Miss
Most people dont realize theres a window.
There's 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, 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 a fine. Maybe a False Claims Act settlement. Not pleasant - but not a federal felony conviction either. Not prison. Not a permanent record that destroys your career and professional licenses.
But heres the trap most people fall into.
Some people, panicking, decide to voluntarily repay the loan. They think returning the money makes the problem go away. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Without counsel structuring the repayment properly, you might be strengthening the case against yourself.
And talking to investigators?
Recent South Florida cases show defendants who talked without a lawyer ended up charged with obstruction or false statements to federal agents - additional charges on top of the underlying PPP fraud. The agents seem friendly. They seem cooperative. They're building a case.
What to do if youre under investigation:
- Dont destroy any documents. Document destruction becomes a separate charge.
- Dont discuss with others who may be involved. Those conversations get used against you.
- Dont make voluntary payments without counsel.
- Contact a federal defense attorney immediately.
Todd Spodek has handled PPP fraud cases in the Southern District of Florida. 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 You're Ready
If you're in Miami-Dade County - or anywhere in South Florida - 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? 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 Southern District of Florida?
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.
The Strike Force is real. The queue is real. And so is the window where options still exist.
Were here when you need us.
