Phoenix 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 Phoenix is directly in the crosshairs. The District of Arizona has produced some of the longest PPP fraud sentences in the country - 121 months for a Peoria man, 120 months for a Mesa woman. 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 Phoenix and throughout the District of Arizona. 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 for Phoenix
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.
A 2020 PPP loan is prosecutable until 2030. A 2021 loan until 2031. If your applied for forgiveness in 2022, your clock may run until 2032. 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 Phoenix, IRS Criminal Investigation, and SBA OIG. They have strike forces dedicated to this.
Former Phoenix TV news anchor Stephanie Hockridge got 10 years in federal prison for the $63 million Blueacorn PPP fraud scheme. She worked at ABC15 from 2011-2018. Her husband Nathan Reis also pleaded guilty. One company, one scheme, decades of consequences. This happend right here in Arizona. Thats the reality of PPP enforcement in 2025.
Every PPP loan ever issued is now subject to prosecution for a full decade from the date of the offense. If your reading this wondering whether your 2020 loan is still a problem - yes, it probably is.
Arizona's Record-Breaking PPP Sentences
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants charged with pandemic relief fraud
- 2,532 defendants found guilty (82% conviction rate)
- 1,741 recieved prison time (81% of those convicted)
- IRS Criminal Investigation achieves 97.4% conviction rate in prosecuted cases
- Average sentence: 31 months federal prison
The District of Arizona has produced some of the longest PPP fraud sentences in the country. Sean Swaringer of Peoria got 121 months - thats over 10 years - for $1.5 million in fraud. Kimberly Coleman of Mesa got 120 months for a $13 million scheme. Willie Mitchell of Phoenix got 97 months for $9.4 million. Arizona judges arent showing mercy.
Phoenix-area defendants sentenced in recent years:
- Sean Swaringer (Peoria): 121 months, $3.8 million restitution - recruited 10+ others for kickbacks
- Kimberly Coleman (Mesa): 120 months - submitted 24 fraudulent applications, attempted $30 million
- Willie Mitchell (Phoenix): 97 months - 7 fraudulent loans totaling $9.47 million
- Jason Coleman (Mesa): 60 months - worked with wife Kimberly on the scheme
Former Phoenix Police Officer Toni Richardson got 15 months and $1 million restitution for fraudulently obtaining $1.27 million. Her fake business "The Lotto Club" claimed 85 employees and $500,000 monthly payroll. The business had zero employees. Being a public servant dosent protect you. In many cases its worse - prosecutors love making examples of people who were supposed to uphold the law.
These arent just numbers. This is an assembly line. The median time from initial referral to indictment has decreased dramaticly - what used to take 8-12 months now takes 4-6 months. The government has gotten faster, more efficient, and basicly ruthless. Thats the situation your facing if your under investigation.
The Window Nobody Tells You About
Heres something most people dont understand about PPP investigations. There's a window - typically six to twelve months - between when SBA OIG flags a loan and when the case gets referred to the FBI for criminal investigation.
During this window, there is leverage that completly 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 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.
So what do you do? 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. Acting without guidance during this window is how people destroy thier own cases.
Once the FBI takes over and criminal charges are filed, your options narrow dramaticly. The leverage you had during OIG review is gone. Now your defending against a federal indictment in the District of Arizona - one of the harshest jurisdictions for PPP fraud in the country.
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. Thier 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 federal court. He understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority. The approach changes everything.
This is complicated. The rules aren't intuitive. Your instinct to explain yourself, to cooperate, to make things right - those instincts can destroy your case in federal court. You need someone who knows how the system actually works.
When You're Ready
If you're in Phoenix - or anywhere in Arizona - 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. 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 - not best-case fantasies, but actual possibilities based on how these cases play out in the District of Arizona?
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.
