Philadelphia PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. The government was throwing money at businesses during the pandemic and you grabbed what you could. Filled out the application. Got approved. Used the funds. Maybe got forgiveness. Years passed. You moved on. You figured the government moved on too.
It hasn't.
The federal government turned PPP fraud prosecution into an assembly line - and Philadelphia is directly in the crosshairs. The Eastern District of Pennsylvania has a COVID Fraud Working Group with 19 federal agencies hunting these cases. Francis Battista of Delaware County was just convicted in February 2025 on all 22 counts and faces up to 316 years in prison. Congress extended the statute of limitations to 10 years. That 2020 loan you thought was forgotten? Prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Philadelphia and throughout the Eastern District of Pennsylvania. If you're under investigation, if the SBA Office of Inspector General has contacted you, or if federal agents have shown up at your door - this article explains what you're facing and what options may still exist.
The Federal Government Is Still Coming
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people completley 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 is prosecutable until 2031. The government gave itself a full decade to come for you. And there using every bit of that time. The SBA Office of Inspector General has recieved more than 250,000 hotline complaints since the pandemic began. From those complaints, data analytics teams identified more than 95,000 actionable leads - representing, according to there own testimony, "more than 100 years of investigative case work."
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense.
The COVID-19 Fraud Enforcement Task Force coordinates investigations across FBI, IRS Criminal Investigation, SBA OIG, Secret Service, and a dozen other agencies. They have strike forces dedicated specificaly to pandemic relief fraud. The assembly line is running at full capacity.
Philadelphia Is in the Crosshairs
The Eastern District of Pennsylvania covers Philadelphia, Bucks County, Chester County, Delaware County, Lancaster, Lehigh, Montgomery, Northampton, and Berks. But heres the part that should keep you awake at night.
The EDPA created a COVID Fraud Working Group in March 2020 - before most PPP fraud even occured. 19 federal agencies coordinating together. FBI. IRS Criminal Investigation. Secret Service. SBA OIG. Department of Labor OIG. Homeland Security Investigations. Treasury Inspector General. And twelve more. Plus the Pennsylvania Attorney General. The prosecution machine was built at the same time as the relief program. Your not dealing with an understaffed office playing catchup. Your dealing with a coordinated federal apparatus that's been hunting PPP fraud for five years.
Recent Philadelphia-area PPP fraud cases:
- Francis J. Battista (Delaware County, February 2025): Convicted at trial on all 22 counts - 12 counts wire fraud, 3 counts aggravated identity theft, 7 counts money laundering. Sought $10 million through 19 fraudulent applications. Recieved $8.4 million. Used funds for Florida waterfront property, a Range Rover, risky stock trading that lost millions, and private school tuition. Faces up to 316 years. The government seized $6.3 million. Judge remanded him into custody immediately after the verdict.
- Devron Brown (Philadelphia, 2022): Sentenced to 78 months - thats six and a half years - for $937,500 in PPP fraud. Bought a house in Florida for $250,000. Bought his mother a Lexus for $43,000. Motorcycle. Diamond jewelry. After his arrest, he fled as a fugitive. Was caught in Florida. The judge said: "He took it as an oportunity, and quite frankly, probly didnt think he'd get caught."
- Tommy Hawkins (Philadelphia, October 2024): Bank manager sentenced to 65 months. Used his position to coordinate 38 fraudulent PPP loans totaling $5 million. Ordered to pay $5.3 million in restitution.
According to Pandemic Oversight, through December 31, 2024:
- 3,096 defendants charged with pandemic relief fraud
- 2,532 defendants found guilty (82%)
- 1,741 received prison time (81% of those convicted)
- 2,008 ordered to pay restitution (94%)
- More than 440 defendants ordered to pay $1 million or more in restitution
One PPP application can trigger multiple federal charges. Wire fraud - 20 to 30 years. Bank fraud - 30 years. False statements to SBA - 30 years. Money laundering - 20 years. Aggravated identity theft - 2 years mandatory consecutive. Battista was convicted on 22 counts. The theoretical maximum is 316 years.
Why 2025 Sentences Are 40% Longer
Early in the pandemic, some federal judges showed leniency. The economic chaos was real. The desperation was real. The guidance from the government was genuinely confusing. Some judges gave probation. Some gave minimal prison time for smaller frauds.
Those days are completley over.
Defendants sentenced in 2024-2025 are recieving 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.
This is the sentencing cliff. And if your under investigation right now, your standing at the edge of it.
Recent sentencing examples:
- Devron Brown (Philadelphia): 78 months for $937,500
- Tommy Hawkins (Philadelphia): 65 months for coordinating $5 million in fraud
- Paris (Philadelphia): 20 months for $120,000
- Darryl Young (Pennsylvania): 78 months for $4.8 million
- Cincinnati defendant: 18 months for $21,000
That last one matters. 18 months in federal prison for $21,000 in PPP fraud. The amount dosent protect you. The government wants deterrence. They want headlines. They want other people who committed PPP fraud to see these sentences and worry.
If you took $50,000 or $500,000 - you face the same fundamental problem. Federal prosecutors have made PPP fraud a priority and there not showing mercy based on loan size.
What to Do If Your Under Investigation
Heres something most people dont 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 dissapears 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 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 dosent make it go away - it can actualy strengthen the government's case against you.
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. John Columbo in Philadelphia faces additional obstruction charges for filing false tax returns during his investigation.
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 be 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 the Eastern District of Pennsylvania. He understands the difference between OIG-stage investigations where civil resolution may still be possible, and FBI-stage investigations where criminal defense is the priority. He knows how federal prosecutors in Philadelphia think.
When Your Ready
If you're in Philadelphia - or anywhere in the Eastern District of Pennsylvania - 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. There is 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 EDPA?
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.
