Mississippi PPP Loan Fraud Lawyers

Mississippi has fewer businesses than California. Fewer people than Texas. A smaller economy than New York. But when it comes to federal PPP fraud prosecutions, Mississippi's Northern District leads the entire nation. The answer isnt about fraud rates. Its about one U.S. Attorney who decided to make PPP prosecution his legacy project and built a system to maximize convictions. If you received a PPP loan in Mississippi, your geographic location - not the severity of what you did - may determine whether you face civil recovery or federal prison.

Welcome to Spodek Law Group. We are a federal criminal defense firm that represents clients nationwide facing PPP fraud investigations and prosecutions. What we're seeing in the Northern District of Mississippi isn't standard federal enforcement. Its an assembly line designed to convert civil matters into criminal cases, and the numbers prove it.

You probably think PPP fraud enforcement is consistent across the country - same conduct gets treated the same way, whether you're in Jackson or Los Angeles. Thats not how this works. Mississippi's Northern District has obtained more then 150 False Claims Act judgments - more than any other federal district in America. Over $20 million in recoveries. U.S. Attorney Clay Joyner publicly announced his office will focus on PPP fraud "for several years to come." This isnt winding down. Its accelerating.

Why Mississippi Prosecutes More PPP Fraud Than California, Texas, and New York Combined

The numbers don't make sense until you understand the system.

California has 39 million people. Texas has 30 million. New York has 19 million. Mississippi has 2.9 million. By population alone, you'd expect maybe 1/10th the fraud cases. But Mississippi's Northern District doesnt have 1/10th the prosecutions - it has MORE prosecutions than any other federal district in the United States. One district with 2.9 million people outpacing districts covering 39 million. That shouldnt be possible unless something else is going on.

This isn't because Mississippians are more dishonest. It's because U.S. Attorney Clay Joyner made PPP enforcement THE priority and created an infrastructure to maximize case volume. Most federal districts treat PPP cases on a case-by-case basis. Large amounts, clear intent to defraud, obvious fake businesses - those become criminal prosecutions. Smaller amounts, good-faith errors, reliance on accountants - those get resolved civilly. The system has discretion.

Northern Mississippi built a different system. The Civil Division investigates using audit authority. When they find discrepancies - and there are discrepancies in most applications because the program was intentionally designed for speed over accuracy - they don't just pursue civil recovery. They refer cases to criminal prosecutors. The affirmative civil enforcement attorney's investigations are feeding the criminal docket. It's a pipeline, not separate tracks.

What does that mean for you? If your business was in Northern Mississippi and you had ANY discrepancy in your PPP application, your facing potential criminal prosecution in a district that leads the nation in bringing those cases. Same conduct that results in a civil settlement in Los Angeles results in an indictment in Mississippi. The enforcement isn't uniform - it's geographically arbitrary. Your in the wrong district at the wrong time under the wrong U.S. Attorney.

And here's the kicker - the statute of limitations was extended in 2022 from 6 years to 10 years. Loans from 2020 are prosecutable until 2030. Were not even halfway through the enforcement window. If you think "my loan was four years ago, I'm probably safe," you're wrong.

The Civil Division Pipeline: How Your Audit Becomes a Criminal Case

Most people think civil and criminal cases are seperate tracks. Thats the fundamental misunderstanding that destroys leverage.

In a normal federal enforcement system, the SBA Office of Inspector General (SBA-OIG) conducts audits. If they find problems, they pursue civil recovery - you repay the loan, maybe treble damages under the False Claims Act, maybe a penalty. Its expensive but not criminal. Separately, the FBI investigates criminal fraud - fake businesses, stolen identities, and obvious schemes. Two different agencies, two different processes, two different outcomes.

Northern Mississippi collapsed that distinction.

The Civil Division lawyers in the U.S. Attorney's office conduct investigations using civil authority. They can issue subpoenas, demand documents, interview witnesses - all under the framework of a civil audit. You don't have Miranda rights. You dont have a right to counsel present during questioning. The investigator sounds friendly because it's a "civil matter." You cooperate because cooperation is supposed to help.

But here's what actually happens. The civil investigator builds a complete case file. Bank records showing where the PPP funds went. Tax returns showing actual payroll vs. claimed payroll. Interviews with employees. Your own statements explaining discrepancies. Then that civil investigator - who works in the same U.S. Attorney's office as the criminal prosecutors - walks the file down the hall. The criminal division reviews it. If theres evidence of intent to defraud, they open a criminal case. Your civil audit just became a criminal investigation, and you didnt know it was happening.

This is the pipeline. Civil authority gathers evidence without triggering criminal procedure protections. Then criminal prosecutors use that evidence to indict. By the time you receive a target letter, the case is already built.

LaKeith Faulkner learned this the hard way. He was a Mississippi attorney AND an SBA employee - someone who understood the system intimately. He got 62 months and owes $10.6 million in restitution. If a lawyer working for the SBA can get indicted and convicted, what makes you think your explanation to the civil investigator is going to make this go away?

The 4-6 Month Silent Investigation - And Why You'll Miss It

The investigation is happening right now, and you dont know it.

In 2022-2023, the median time from SBA-OIG referral to federal indictment was 8-12 months. Plenty of time to discover your a target, hire counsel, and negotiate a civil resolution before criminal charges get filed. That window has collapsed. Analysis of recent cases shows the median timeline has dropped 45% - were now seeing 4-6 months from referral to indictment. The government is moving faster, which sounds efficient until you realize what it means for you.

You dont get notified when SBA-OIG refers your loan for investigation. You dont get notified when the Civil Division opens a file. You don't get notified when FBI agents start pulling bank records. The investigation runs in complete silence for months while your living your normal life, going to work, picking up kids from school, completly unaware that someone is building a criminal case against you.

Then you get a target letter. Or worse, an indictment. By that point, investigators have already reviewed your entire loan application, pulled all your bank statements, interviewed your employees, talked to your vendors, maybe even interviewed your spouse or business partner. The case is built. Your opportunity to negotiate a civil settlement before criminal charges were filed is gone.

All PPP loans over $2 million were automatically flagged for enhanced scrutiny. If you received $2 million or more, your loan went into an audit queue by default. You weren't flagged because of suspicious activity. You were flagged becuase of the amount. But that audit process is feeding the same civil-to-criminal pipeline described above.

Banks file Suspicious Activity Reports (SARs) without telling you. If your bank saw unusual fund movements after you received PPP money - rapid transfers, large cash withdrawals, payments that didn't look like payroll - they filed a SAR. That report went to FinCEN, then to the FBI. You werent notified.

The "Friendly" SBA Call That Adds 5 Years to Your Sentence

The investigator sounds nice. Thats the trap.

You get a call from someone identifying themselves as an SBA-OIG investigator or a Civil Division attorney. They explain there are some questions about your PPP loan and they'd like to discuss it. The tone is casual, almost friendly. "Were just trying to clear this up." "We need to understand what happened." Your instinct is to cooperate. You think explaining the situation will make it go away. You schedule a meeting. You bring your documents. You answer there questions.

Every word you say is being used to build a criminal case against you.

Heres what your not being told. Civil investigators dont have to give you Miranda warnings. They dont have to tell you that you have the right to remain silent or the right to an attorney. Its a civil investigation - those protections dont apply. So you talk. You explain that your accountant prepared the application. You mention that some of the employees listed werent full-time but you thought they counted. You describe how you used some of the funds for rent because you thought that was allowed under the rules.

Six months later, you get indicted. The indictment includes 18 USC 1001 - making false statements to federal agents. Because during that "friendly" conversation, you said things that conflict with the written application or with other evidence they gathered. Your "cooperation" just added 5 years to your maximum exposure.

Lisa Evans learned this. She pled guilty in February 2025 to conspiracy to commit wire fraud after she helped borrowers file fraudulent PPP applications in exchange for 20-30% kickbacks. The total fraud was $5.1 million. Shes facing 20 years. How many of those borrowers talked to investigators trying to "clear things up" before they realized they were targets? The friendly investigator isnt there to help you. There building a case.

If you get contacted by an SBA-OIG investigator, a Civil Division attorney, or an FBI agent about your PPP loan, the only words you should say are: "I need to speak with my attorney before answering any questions." Then you call someone like Spodek Law Group at 212-300-5196. Immediatly. Before you say anything else. Because that conversation - the one that seems routine - could be the difference between a civil settlement and federal prison.

127 Months, $10.6 Million, Forfeited Mercedes: Real Mississippi Sentences

These arent hypothetical maximums. These are actual sentences from actual people in Mississippi PPP cases.

• Lakisha Pearson - 127 months total. Thats 10 years and 7 months. She owned Unity Tax Express and helped clients file fraudulent PPP applications in exchange for kickbacks. Judge Aycock sentenced her to 75 months to run consecutively to a previous 52-month sentence. Shes also ordered to pay $3.36 million in restitution. Her husband, Robert Pearson, got 110 months - thats over 9 years. Same restitution amount. They were both convicted of conspiracy to commit wire fraud. This wasnt a massive organized crime ring. It was a tax preparation business in Holly Springs, Mississippi.
• Norman Beckwood - 62 months and $10.6 million in restitution. He also forfeited $700,147.74 in cash, a 2018 Mercedes Benz C Class, and a 2020 Mercedes Benz G63. The government took his money and his cars. Five years in federal prison, over $10 million owed, and no assets to pay it.
• LaKeith Faulkner - 62 months and $10.6 million in restitution. He's a Mississippi attorney and was an SBA employee. Someone who knew the system intimately. It didn't matter. He got the same sentence as Beckwood.
• Chris Lick from Starkville - 78 months. That's 6 and a half years. He also has a $12 million civil judgment against him. So even after he serves his 78-month sentence, hes still on the hook for twelve million dollars that he'll never be able to pay. The judgment will follow him for life.
• Lisa Evans - Pled guilty February 2025. Hasn't been sentenced yet, but she's facing up to 20 years for conspiracy to commit wire fraud. The fraud amount was $5.1 million. She took 20-30% kickbacks from borrowers. When she gets sentenced in May 2025, we're expecting to see something in the 7-10 year range.
• 14 people arrested in Marshall and DeSoto County - All facing conspiracy to commit wire fraud (20 years max) and wire fraud charges (another 20 years) plus money laundering (10 years). That's potential 50-year exposure if charged with all counts.

The pattern in Mississippi is clear: conspiracy to commit wire fraud charges (which carry 20 year maximums), sentencing guidelines that push most defendants into the 5-10 year range for amounts over $1 million, and restitution equal to the full fraud amount regardless of ability to pay. The Northern District isnt giving people probation and fines. There sending people to federal prison for the better part of a decade.

If you think your case will be different becuase your amount was smaller, look at the Xavier Bailey case. He got a PPP loan of $143,738. Not millions - $143K. The False Claims Act allowed the goverment to recover treble damages ($455,313) plus a $27,015 civil penalty. Total recovery: $482,000+ on a $143K loan. Small amounts dont protect you. The system applies the same penalties regardless of scale.

The 2022 Law That Extended Your 2020 Loan Exposure to 2030

You thought the statute of limitations was 6 years. It was. Then Congress changed it.

The PPP and Bank Fraud Enforcement Harmonization Act of 2022 extended the statute of limitations for PPP fraud from 6 years to 10 years. If you received a PPP loan in 2020, the original statute would have expired in 2026. Under the new law, prosecutions can continue until 2030. That's 10 years from the date of the loan.

This wasn't prospective only. It applied retroactively to loans that were already past the original statute. Loans from 2020 that you thought were safe because we're approaching the 6-year mark? Theyre prosecutable for another 4 years. The goverment extended the clock mid-game.

Why does this matter? Because U.S. Attorney Clay Joyner explicitly said his office will focus on PPP fraud "for several years to come." We're only 5 years out from 2020. That means at least 5 more years of potential prosecution. The enforcement isnt ending - its not even at the halfway point.

The statute extension also affects asset forfeiture. Norman Beckwood forfeited two Mercedes Benz vehicles as part of his case. Those vehicles were purchased with PPP funds years after the loan was issued. The longer statute of limitations means the government can trace funds further into the future and seize assets purchased years after the original fraud.

What Spodek Law Group Does Differently in Mississippi PPP Cases

Early intervention is everything. And by early, we mean before the target letter arrives.

Most people call a lawyer after they get a target letter or an indictment. By that point, the investigation has been running for 4-6 months. Evidence has been gathered. Witnesses have been interviewed. The civil file has been converted to a criminal referral. The leverage to negotiate a civil resolution is gone. Were playing defense, not offense.

Spodek Law Group works differently. If you received a PPP loan in Mississippi and you know there were problems with your application, we can act proactively. We can reach out to the Civil Division before they reach out to you. We can propose document production and cooperation in exchange for civil resolution. We can try to keep this on the civil track before it converts to criminal. But that only works if we intervene during the silent investigation window - before the target letter, before the indictment, before the case is built.

We also understand how the Northern District system works. Were not treating this like a standard federal fraud case becuase its not. The civil-to-criminal pipeline in Mississippi is unique. The volume of prosecutions is unique. The U.S. Attorney's public commitment to continuing enforcement for years is unique. We adjust our strategy based on the specific enforcement environment you are facing, not generic federal fraud defense tactics.

Todd Spodek founded this firm on a principle: aggressive defense combined with client education. Were not just filing motions and showing up to court. Were explaining how the system actualy works, what the government's strategy is, what your options are, and what the realistic outcomes look like. In Mississippi PPP cases, that means explaining the civil-to-criminal pipeline, the 4-6 month investigation window, the sentencing reality (not just the statutory maximums), and the 10-year statute of limitations. You cant make good decisions without good information.

If you've recieved a target letter, we move immediatly to assess wheather trial or plea is the better option. The 93% federal conviction rate means trial is risky. But some cases have defenses - reliance on professional advice, lack of intent, goverment entrapment. Were not pushing you toward a plea just becuase its easier. We're evaluating your specific facts, the strength of the evidence, the credibility of witnesses, and the sentencing exposure to determine whether fighting or negotiating is the right strategy.

And if you're already indicted or convicted, we're handling sentencing advocacy. The difference between 62 months and 110 months is almost 4 years of your life. The difference between $3 million restitution and $10 million restitution is your financial future. Sentencing matters. We prepare mitigation evidence, challenge loss calculations, argue for downward departures, and fight for every month and every dollar because the stakes are that high.

Heres what you need to do right now. If you received a PPP loan in Mississippi's Northern District and you know there were discrepancies in your application - employees who weren't really employees, payroll that was inflated, funds used for non-payroll purposes - call us at 212-300-5196. Were not going to judge you. Were going to assess were you are in the investigation timeline, what your exposure is, and what we can do to minimize the damage. The earlier you call, the more options we have. The longer you wait, the more likely you are to miss the intervention window and end up with a target letter or an indictment.

This isnt going away on its own. The Northern District has committed to continuing PPP enforcement for several more years. The statute of limitations runs until 2030. If your going to face this, you want to face it with counsel who understands the specific enforcement enviroment in Mississippi and has experience navigating federal fraud cases. Thats what Spodek Law Group does. Call us. Lets talk about your situation and figure out the best path forward. 212-300-5196.