Nashville PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Nashville business owner doing what everyone else was doing during the pandemic chaos. The SBA was practically throwing money at businesses trying to survive. You filled out the application, got approved, used the funds however made sense at the time, maybe even got forgiveness. Years passed. You assumed it was over.
The government hasn't moved on. And Middle Tennessee is hunting.
The Middle District of Tennessee collected $137 million in fraud recoveries in fiscal year 2024 alone - making it one of the most aggressive PPP enforcement districts in the entire country. Under U.S. Attorney Henry Leventis, this district pursues both criminal charges AND civil False Claims Act recovery simultaneously. Congress extended the statute of limitations to 10 years. That 2020 loan you thought was forgotten? It's prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Nashville and throughout the Middle District of Tennessee. If you're under investigation, if you've received a letter from the SBA Office of Inspector General, or if federal agents have contacted you - this article explains exactly what your facing and what options might still exist.
The Clock That Never Stopped
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people never heard about it. What it actualy did was extend the statute of limitations from 5 years to 10 years - retroactively.
That means 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 there not waiting around. The COVID-19 Fraud Enforcement Task Force coordinates FBI, IRS Criminal Investigation, SBA OIG, and Secret Service into a unified prosecution machine. What looks like seperate agencies is actually one coordinated effort with different entry points. Middle Tennessee has dedicated prosecutors assigned specifically to pandemic fraud cases. This isn't a side project. It's an institutional priority.
The silence you've experienced for the past few years wasn't safety. It was the investigation timeline. The SBA OIG has recieved more than 250,000 hotline complaints since the pandemic began. From those, there data analytics team identified over 95,000 actionable leads. They've been working through them systematicaly. If your loan had irregularities, your file is in that pile somewhere.
Middle Tennessee's $137 Million Priority
Heres the number that should stop you cold.
$137 million in fiscal year 2024. One district. One year. This isn't winding down. This is institutionalized enforcement.
U.S. Attorney Henry Leventis has made pandemic fraud a priority for the Middle District. Theres dedicated prosecutors. Theres a coordinated effort with federal law enforcement. And critically, theres a dual-track approach that most people don't understand until its to late.
The Middle District pursues criminal prosecution AND civil False Claims Act recovery simultaneously. Mount Zion Baptist Church paid $70,464 to settle civil PPP misuse claims - no criminal charges, just money. Koide Tennessee Inc. paid $2 million to resolve False Claims Act allegations about there Second Draw PPP loans. No prison. Just a massive financial settlement.
This is what the dual-track means in practice. Even if you negotiate your way out of prison - even if you cooperate fully and make restitution - they're still coming for every dollar through the civil track. The criminal case and the civil case run parallel. They share information. They coordinate strategy.
Nationally, as of December 2024: 3,096 defendants charged. 2,532 found guilty - thats 82%. 1,741 received prison time - 81% of those convicted. Middle Tennessee is outperforming these national numbers.
Nashville business owners who thought time had passed are discovering the machine never stopped.
What Happens When They Come For You
Abstract statistics become real when you see the names. These are Middle Tennessee cases - people who thought they were safe until they weren't.
Shawn Palmer, Smyrna. $514,370 PPP loan for Palmers Transportation. He submitted fake payroll documents to Kabbage to get approved. Charged with money laundering - not just fraud, but money laundering. His case showed how one PPP application can spiral into multiple federal charges.
Shelby Lynn Hill, Crossville. $220,645 for a fake cattle farm called "Plateau Angus Farms." She claimed 14 employees with $88,000 monthly payroll. The farm didn't exist. She also got $42,700 for another fictitious company called "Premium Persians of the Plateau." Used the funds to start installing a personal swimming pool. Sentenced to one year and one day in federal prison.
Herman Shaw, Memphis. $782,212 through his trucking company Freight Masters. Sentenced to 30 months federal prison in November 2024. Used PPP funds to pay gambling debts. Paid his accomplice $262,000 in kickbacks. The government is still actively sentencing people in 2024 and 2025 for fraud committed in 2020.
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. Palmer was charged with money laundering - that's not an add-on charge. That's a standalone federal felony.
The amount doesn't protect you. Hill's fake cattle farm got her a year in prison. Shaw's gambling debts got him 30 months. The government wants headlines. They want examples. And Middle Tennessee under Leventis is delivering them.
The Narrow Path That Still Exists
After everything above - there IS a path. But the window is narrow and timing matters more then anything else.
There's typically a six to twelve month window between when SBA OIG flags a loan and when the case gets referred to the FBI for criminal investigation. During this window, civil resolution may be possible. Repayment plus a fine. Maybe a False Claims Act settlement like Mount Zion Baptist. Not pleasant - but not a federal felony conviction either.
Once criminal charges are filed, that leverage largely disappears.
The first rule is absolute: Never talk to federal agents without a lawyer present.
This sounds obvious. But recent cases show people who decided to cooperate without counsel ended up being charged with obstruction or making false statements to federal agents - on top of the underlying PPP fraud. The agents seem friendly. There asking questions casually. Their building a case with every word you say.
If you're under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a seperate federal charge.
- Don't discuss the matter with anyone else who may be involved. Those conversations can be used against you.
- Don't make voluntary payments to the SBA without counsel. Voluntary 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 understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority. The strategy is completly different depending on where your case stands.
When Your Ready
If you're in Nashville - or anywhere in Middle Tennessee - 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. 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 based on how these cases are actually playing out in the Middle District of Tennessee?
Call us at 212-300-5196. The statute of limitations runs until 2030 or 2031 depending on when you got your loan. The government has time. But once they move, things happen fast. The earlier you have counsel, the more leverage exists.
Were here when you need us.
