Portland PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Portland business owner, just trying to keep the lights on during the pandemic. Everyone was doing it - the government was practically begging businesses to take the money. You filled out the application, got approved, used the funds. Years passed. You moved on. You assumed the government had moved on too.
Its not over.
The District of Oregon has become one of the most aggressive PPP fraud prosecutors in the country. Since January 2021, more than 50 people have been charged in this federal district alone. Combined prison time handed down so far: 631 months. The 10-year statute of limitations means that 2020 loan you thought was forgotten is prosecutable until 2030. A 2021 loan until 2031.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Portland and throughout the District of Oregon. 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 Oregon
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 late 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. Theyre not slowing down.
The sentencing landscape has shifted dramatically. Defendants sentenced in 2024-2025 are receiving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency - judges who understood the economic chaos, the desperation, the confusing guidance - thats completley over now. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing. Regardless of amount.
But what does that mean specifically for Portland? The District of Oregon numbers tell a story most people dont expect.
What Portland Business Owners Are Up Against
Since January 2021, more than 50 people have been charged in the District of Oregon for there roles in COVID-19 relief fraud schemes. This isnt a handful of high-profile cases. Its a systematic prosecution effort.
The results so far: 38 individuals convicted for their crimes. 631 combined months of federal prison sentences. 1,194 combined months of probation and supervised release.
One case stands out.
Andrew Lloyd of Lebanon, Oregon. He submitted nine PPP loan applications, six of which were accepted, resulting in a payout of more than $3.4 million. He also applied for numerous EIDL loans. Upon receipt of the funds, Lloyd purchased real estate across Oregon and California - 25 properties in total. He transferred more than $1.8 million of PPP loan funds directly to his brokerage account.
The sentence: 48 months federal prison. Five years supervised release. More than $4 million in restitution. And heres the part that should keep you awake at night - forfeiture of those 25 properties plus 15,740 shares of Tesla stock that Lloyd had purchased with fraud proceeds. The securities and cash seized from his accounts are now valued at more than $18 million.
Oregon resident. Small business loans. Federal prison. $18 million forfeiture.
More District of Oregon cases:
- Salwan Adjaj (West Linn): A former Oregon dentist who pled guilty to stealing nearly $11.5 million through fraudulent PPP and EIDL applications. Wire fraud plus aggravated identity theft. He submitted dozens of fraudulent applications.
- Eric Karnezis and co-defendants: A 23-count federal indictment alleging a $178 million PPP fraud conspiracy. They submitted or caused to be submitted at least 1,300 fraudulent applications. Aproximately $105 million in loans were actually funded. Trial scheduled for February 2025.
- Justin Cunningham: Created a fictitious sole proprietorship called "JC Shoe Juice" to fraudulently obtain PPP funds. Ordered to forfeit $77,340.
The paradox most people dont understand: A Cincinnati defendant got 18 months in federal prison for $21,000 in PPP fraud. March 2025. The amount dosent protect you. Federal judges in 2025 are including prison time in nearly every PPP sentencing regardless of the loan size.
Those are the local cases. But the national picture reveals even more about were this is headed.
The Numbers Behind Federal PPP Prosecution
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.
The government has gotten faster. 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 DOJ's PPP Strike Force has dedicated resources and is prioritizing cases before statute of limitations becomes an issue.
One PPP application can trigger multiple federal charges. Wire fraud (20-30 years). Bank fraud (30 years). False statements to the SBA (30 years). Money laundering (20 years). Aggravated identity theft (mandatory additional 2 years consecutive). Theoretical exposure from a single fraudulent application can exceed 100 years.
In practice, sentences dont reach that level. But charge stacking gives prosecutors enormous leverage in plea negotiations. Leon Miles in Brooklyn got 72 months federal prison, forfeiture of a 2020 Bentley, and $598,299.39 in restitution. All from PPP fraud.
So what do you do if your in this situation? The answer depends entirely on timing - and most people dont realize how narrow the window is.
Why Fighting Back Is Your Only Option
Theres a window - typically six to twelve months - between when SBA OIG flags your loan and when the case gets referred to the FBI for criminal investigation.
During this window, leverage exists that completley disappears once criminal charges are filed.
At the OIG review stage, a skilled defense attorney may be able to negotiate a civil disposition. Repayment plus penalties. Maybe a False Claims Act settlement. Not pleasant - but not a federal felony conviction either. Not prison.
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 governments case against you.
And talking to investigators without counsel? There have been several recent cases were people who decided to talk to investigators 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 your under investigation or concerned you might be:
- Dont talk to federal agents without a lawyer present. Ever.
- Dont destroy any documents. Document destruction becomes a seperate 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 evidence.
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 becomes the priority.
When Your Ready
If your in Portland - or anywhere in Oregon - 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 youll 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 Oregon?
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.
Dont wait until federal agents show up at your door.
Were here when you need us.
