Milwaukee PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. You owned a business in Milwaukee or somewhere in Wisconsin, the pandemic was destroying everything, and the government was handing out money. You filled out the application, got approved, used the funds. Maybe the way you used them wasn't exactly what the program intended. Years have passed. You've moved on. You assumed everyone else moved on too.
They haven't.
The federal government turned PPP fraud prosecution into a factory - and Milwaukee is on the assembly line. Thomas Smith of Pewaukee got 57 months. Stephen Smith of Milwaukee got 36 months. Robert Solberg of Crivitz got 18 months for $20,833 in PPP fraud. The Eastern District of Wisconsin has prosecuted nearly 40 people already. Congress extended the statute of limitations to 10 years. Your 2020 loan? Prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Milwaukee and throughout the Eastern District of Wisconsin. 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 is exactly what you need to understand.
The Feds Are Still Coming for Milwaukee
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people in Milwaukee didn't notice. Most people anywhere didnt notice.
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 their using it. As of late 2024, the DOJ continues treating PPP fraud as a top enforcement priority. The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, SBA OIG, and other agencies. There running strike forces dedicated specificaly to pandemic relief fraud.
The SBA Office of Inspector General has recieved more than 250,000 hotline complaints since the pandemic began. From those, their data analytics team identified more than 95,000 actionable leads. As of early 2025, there were 650+ active investigations. The Badger Project investigation found nearly 40 people in Wisconsin alone have been charged.
Heres the other part that matters. Defendants sentenced in 2024-2025 are receiving sentences aproximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. The pandemic leniency is completley over. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved.
What Wisconsin Sentences Actually Look Like
The Eastern District of Wisconsin covers Milwaukee, Pewaukee, Madison, Crivitz - the eastern half of the state. Real people from this district have gone to federal prison for PPP fraud. Real sentences.
Recent Wisconsin PPP fraud cases:
- Thomas Smith (Pewaukee): Led a five-person conspiracy to fraudulently obtain over $1.1 million in PPP loans. Sentenced to 57 months federal prison. He directed co-conspirators to funnel portions of the funds to him for personal expenses.
- Stephen Smith (Milwaukee): Fraudulently obtained $600,000 in PPP loans for three companies using false payroll statements. Sentenced to 36 months federal prison. Ordered to pay $397,500 in restitution.
- Robert Solberg (Crivitz): Recieved $20,833 from PPP after lying on his application about not having a prior felony conviction. He was actualy awaiting sentencing on a seperate federal case when he applied. Sentenced to 18 months federal prison.
- Sharon Johnson (Madison): Wire fraud and money laundering on PPP and EIDL applications totaling about $109,000. Sentenced to 3 months federal prison plus $109,733 in restitution. Cooperation helped.
57 months to 3 months. Same district. Whats the difference?
Timing. Cooperation. Having counsel at the right stage.
Robert Solberg got 18 months for $20,833. The amount dosent protect you. Federal judges are including prison time in nearly every PPP case now, regardless of how much you took. If you think a small loan means your safe - look at Solberg's case. Look at the Cincinnati defendant nationally who got 18 months for $21,000. The government wants headlines. They want deterrence.
One PPP application can trigger multiple 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 the SBA carries 30 years. Money laundering carries 20 years. Aggravated identity theft adds a mandatory 2 years consecutive. Thomas Smith faced multiple charges for the same scheme.
But not everyone gets maximum sentences. Sharon Johnson got 3 months for $109,000 fraud. The University Club of Milwaukee paid a $1 million civil settlement and faced no criminal charges at all. Affiliated companies controlled by a family office paid $10.8 million to settle - civil resolution, no prison.
The difference is when you act and how you act. Early intervention with experienced federal defense counsel versus panicking and making moves that hurt your case.
The Window Most People Miss
Something most people dont understand about PPP investigations.
Theres a window - 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, their 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. Maybe a False Claims Act settlement like the University Club of Milwaukee got - $1 million, no criminal record, no prison. Not pleasant, but not a federal felony conviction either.
But heres the trap most people fall into.
Some people, panicking, decide to voluntarily repay the loan thinking it will make the problem go away. The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt. Returning the money doesnt make it go away. It can actualy strengthen the governments case against you.
The University Club settlement was different. That was negotiated with counsel, structured properly, done at the right stage of the process. A panic repayment to the SBA without legal guidance? Thats potentially handing prosecutors evidence.
This is complicated. The timing matters enormously. Whether to repay, when to repay, how to structure any resolution - these decisions require counsel who understands how federal prosecutors in the Eastern District of Wisconsin actualy think and operate.
What You Do Next Changes Everything
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 were 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. There not on your side.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction can become a separate charge.
- Dont discuss the matter with others who may have been involved. Those conversations can be used against you.
- Dont make voluntary payments to the SBA without counsel. This can be used as 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 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 your in Milwaukee - or anywhere in Wisconsin - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options exist.
The consultation is free. Theirs 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 play out in the Eastern District of Wisconsin?
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.
Dont wait until federal agents show up at your door.
Were here when you need us.
