Nassau County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone did - the government was practically throwing money at businesses during the pandemic. You filled out the application, got approved, used the funds, maybe even got forgiveness. Years passed. You moved on. You assumed the government had moved on too.
It hasn't.
The federal government turned PPP loan fraud prosecution into an assembly line - and Nassau County is directly in the crosshairs. The Eastern District of New York has jurisdiction over all of Long Island, and they're handing out sentences 40% longer than two years ago for identical conduct. 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 Nassau County and throughout the Eastern District of New York. 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 you're facing and what options exist.
The Federal Government Is Still Coming
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people missed what it actualy did.
It extended 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 using it. As of December 2024, 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, SBA OIG, and other agencies. They have strike forces dedicated to this.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
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 - representing, according to there own testimony, "more than 100 years of investigative case work." As of January 2023, they had 536 ongoing investigations. That number has only grown.
Nassau County Is in the Crosshairs
The Eastern District of New York covers Brooklyn, Queens, Staten Island, and all of Long Island - including Nassau County. This is one of the busiest federal districts in the country for white-collar prosecution.
Recent Nassau County/Long Island PPP fraud cases:
- Donna Ingram (Long Island, May 2024): Indicted for a $3.28 million PPP fraud scheme. She submitted fraudulent applications for businesses and recieved kickbacks of at least $430,000. Faces up to 20 years imprisonment.
- Damaris Beltre (Freeport, March 2025): 42-count indictment for wire fraud, tax fraud, money laundering, and aggravated identity theft. Aproximately $12 million in losses. Used PPP funds for a house in the Dominican Republic, a Honda CRV, and jewelry.
- Niall Alli (Long Island): Sentenced to 48 months for $1.7 million PPP fraud. Used the funds to buy Patek Philippe watches worth over $138,000, cryptocurrency, and private school tuition.
- Donald Finley (Long Island): The owner of the Jekyll & Hyde theme restaurant in Manhattan. Sentenced to 24 months for $3.2 million in fraudulent PPP and EIDL loans across 29 applications.
All four of New York's federal districts are actively prosecuting PPP fraud right now. Nassau County residents face prosecution in EDNY, which has been particuarly aggressive.
The Numbers That Should Terrify You
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 defendants have been found guilty (82%)
- 1,741 received prison time (81% of those convicted)
- 2,008 were ordered to pay restitution (94%)
- Prison sentences ranged from 1 day to 30 years, with the majority between 1-5 years
More than 440 defendants were ordered to pay $1 million or more in restitution. Restitution amounts have reached as high as $71 million.
These aren't just numbers. This is an assembly line.
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 government has gotten faster, more efficient, and more ruthless.
Why 2025 Sentences Are 40% Longer
Early in the pandemic, some federal judges showed leniency. The economic chaos. The desperation. The confusing guidance. Some judges gave probation or minimal prison time for smaller PPP frauds.
Those days are completley over.
Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved.
Recent sentencing examples from DOJ press releases:
- Richard Nieto: 46 months for $913,000 (June 2025)
- Nevada defendant: 15+ years for $11 million (August 2025)
- Kansas City woman: 51 months for $900,000 (2025)
- Cincinnati defendant: 18 months for $21,000 (March 2025)
- Leon Miles (Brooklyn): 72 months for $1.9 million, plus forfeiture of a 2020 Bentley
The sentencing cliff is real. If your under investigation now, you face a very different landscape then someone who was caught in 2021.
The Window You Didn't Know Existed
Here's something most people don't understand about PPP investigations.
There's 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, there 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. Not pleasant, but not a federal felony conviction either.
But here's 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 doesn't make it go away - it can actualy strengthen the government's case against you.
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 think.
Small Loan, Big Prison
"Do people actualy go to prison for a $20,000 PPP loan?"
Yes.
A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. March 2025. The amount doesn't protect you. The federal sentencing guidelines look at various factors, but current practice shows judges including prison time in nearly every PPP sentencing regardless of the amount.
This isn't about proportionality. It's about deterrence. The government wants headlines. They want other people who committed PPP fraud to see these sentences and worry.
If you took $50,000 or $500,000 or $5 million - you face the same fundamental problem. Federal prosecutors have made PPP fraud a priority, and there not showing mercy based on loan size.
How One Application Becomes Five Charges
The PPP itself doesn't have criminal provisions. The CARES Act isn't a penal statute. So how are people going to federal prison?
The DOJ uses pre-existing fraud statutes to prosecute PPP fraud. One application can trigger multiple charges:
- Wire Fraud (18 U.S.C. § 1343) - 20-30 years
- Bank Fraud (18 U.S.C. § 1344) - 30 years
- False Statements to SBA (18 U.S.C. § 1014) - 30 years
- Money Laundering (18 U.S.C. § 1956) - 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
One PPP application can create theoretical exposure exceeding 100 years. In practice, sentences don't reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations.
Leon Miles in Brooklyn: 72 months federal prison, forfeiture of a 2020 Bentley the government seized, restitution of $598,299.39. All from PPP fraud.
What to Do If You're Under Investigation
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 where 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. Their not on your side.
If you're under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a separate charge.
- Don't discuss the matter with others who may be involved. Those conversations can be used against you.
- Don't 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 the Eastern District of New York. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority.
When Your Ready
If you're in Nassau County - or anywhere on Long Island - 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. 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 EDNY?
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.
Don't wait until federal agents show up at your door.
Were here when you need us.
