Middlesex County PPP Loan Fraud Lawyers
You got a PPP loan during the pandemic. Maybe it was for your Cambridge consulting firm, your Lowell restaurant, your Framingham contracting business. Everyone in Middlesex County was scrambling in 2020. The government practically threw money at small businesses - approving applications in 24 hours, sometimes less, with minimal verification. You filled out the forms, got approved, used the funds. Years passed. You moved on. You assumed the government had moved on too.
It hasn't.
The federal government turned PPP fraud prosecution into an assembly line - and Middlesex County is directly in its path. The District of Massachusetts handles all federal criminal cases from Cambridge, Lowell, Framingham, Newton, Somerville, Medford, and every other city in the county. They're prosecuting aggressively. Through December 2024, 3,096 defendants have been charged nationwide - and 81% of those convicted got prison time. The 10-year statute of limitations means that 2020 loan you thought was ancient history is prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Middlesex County and throughout the District of Massachusetts. 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 might still exist.
The Federal Government Is Still Coming
In August 2022, President Biden signed a bill that most people completley missed. The PPP and Bank Fraud Enforcement Harmonization Act. Sounds bureaucratic. What it actualy did was give the government another five years to prosecute you.
It extended the statute of limitations from 5 years to 10 years - 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 government gave itself a full decade to build cases, and there using every day of it. The DOJ continues to investigate PPP fraud as a top enforcement priority. The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, Secret Service, and SBA OIG. Strike forces dedicated specificaly to this.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
And if you're in Middlesex County, your case goes to federal court in Boston. The District of Massachusetts covers all of it - Cambridge, Lowell, Framingham, Newton, Waltham, Somerville, Medford, Malden, Arlington, Watertown. Every city. The FBI Boston Field Office is actively investigating PPP fraud cases through 2026 and beyond.
That alone would be concerning. But heres what makes it worse:
The Prosecution Machine Is Getting Faster
According to Pandemic Oversight, the federal government's official tracking system, here's where things stand as of December 31, 2024:
- 3,096 defendants charged with pandemic relief fraud
- 2,532 defendants found guilty (82% 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
But the numbers that matter most aren't the totals. It's the acceleration.
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 got faster while sentences got longer. Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022.
Early pandemic leniency is completley over. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved. Regardless of wheather you have a clean record. Regardless of wheather you've already repaid the loan.
Massachusetts isn't a secondary market for these prosecutions. Its a major one. Consider the cases coming out of your federal district:
- Durgaprasad Rao (Carlisle, MA): Indicted for $18 million in fraudulent PPP applications across multiple states. Used the funds to buy a luxury condominium in New York City and transfer money to foreign businesses. Wire fraud and money laundering charges pending.
- Lonnie Smith-Matthews (Boston, September 2025): Indicted on wire fraud, theft of government funds, bank fraud, and money laundering. Claimed business income of $128,000 when he made less then half that - and didn't actualy have a business.
- Adiana Pierre (Multi-state scheme prosecuted in Boston): 17 months federal prison for her role in a $7.5 million kickback scheme. She helped process fraudulent PPP applications and took 10-20% of each loan as payment.
One PPP application can trigger multiple federal charges: wire fraud (20-30 years), bank fraud (30 years), false statements to SBA (30 years), money laundering (20 years), aggravated identity theft (mandatory +2 years consecutive). Theoretical exposure exceeding 100 years from a single application.
So the system is working. The machine is running. The question most people ask next:
Small Loan Means Nothing
"Do people actualy go to federal prison for a $20,000 PPP loan?"
Yes.
Robert Platt Jr. Boston. December 2024. He submitted a fraudulent PPP application for a purported construction business. The loan amount: $20,833. He spent the money on non-business expenses - including transactions at Encore Boston Harbor Casino.
Federal conviction. Time served plus two years supervised release. Full restitution of $20,833 plus forfeiture. His life is now "convicted federal felon" for a loan smaller then most used cars.
Rindal Pierre-Canel. Originally from Randolph, Massachusetts. Between March and May 2021, he submitted three fraudulent PPP applications seeking and recieving over $50,000. One of those applications used the stolen personal identifying information of another person. The Cambridge Police Department assisted in the investigation alongside federal agents.
Two years probation. Wire fraud conviction. Federal record for life.
Jameela Gross. Boston. She was arrested in February 2024 as part of a larger federal crackdown - over 40 people charged in connection with a gang that engaged in drug trafficking, firearms offenses, and financial fraud including PPP fraud. Her PPP fraud involvement: approximately $18,750.
The amount doesn't protect you. Federal prosecutors in the District of Massachusetts are building cases regardless of loan size. The question isnt how much you took. Its wheather they find discrepancies between your application and what actualy existed.
Which brings up the only question that matters if your reading this:
The Window Before Everything Changes
Most people dont understand how PPP investigations actualy work. There's a window - typically six to twelve months - between when the SBA Office of Inspector General flags a loan for review and when the case gets referred to the FBI for criminal prosecution.
During this window, civil resolution is still possible. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either. Not prison time. Not a criminal record that follows you for the rest of your life.
That leverage completley disappears once the FBI takes over.
Once criminal charges are filed, your negotiating from a prison cell, not a conference room. The options narrow dramaticaly. The government holds all the cards. Your best realistic outcome becomes minimizing prison time rather then avoiding it entirely.
Heres the irony that destroys people: recent Massachusetts cases show individuals who decided to talk to investigators without counsel ended up with additional charges - obstruction of justice, making false statements to federal agents - on top of the underlying PPP fraud. The investigator sounded friendly. Cooperative. Wanted to "clear things up." Those conversations became evidence that led to more charges.
If you're concerned about a PPP loan, there are specific things you should and shouldn't do:
- 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 everyone.
- Don't make voluntary payments to the SBA without counsel. Repayment can be used as evidence of consciousness of guilt.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases in the District of Massachusetts. He understands the difference between OIG-stage investigations where civil resolution may still be possible, and FBI-stage cases where criminal defense becomes the priority. He understands how federal prosecutors in Boston approach these cases, what factors they consider, and where leverage might exist.
When Your Ready
If you're in Middlesex County - Cambridge, Lowell, Framingham, Newton, anywhere in the county - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options remain.
The consultation is free. Theirs no obligation. No judgment about what happened during the chaos of 2020. Everyone was making decisions under impossible circumstances. What matters now is protecting your future.
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 the District of Massachusetts?
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.
Don't wait until federal agents show up at your door.
Were here when you need us.
