Riverside County PPP Loan Fraud Lawyers
You got a PPP loan during COVID. Maybe through your business, maybe through a side hustle you started when everything shut down. You filled out the application, got approved, used the funds. Got forgiveness. Years passed. You assumed the government had moved on to other things.
They haven't.
The federal government didn't just add California to the list of states prosecuting PPP fraud. They selected the Central District of California - the district that covers Riverside County - to HEAD one of only three national COVID-19 Fraud Strike Force teams. This isn't casual enforcement. This is an institutional mandate. There are federal prosecutors in Los Angeles whose entire job is pandemic fraud prosecution. The 10-year statute of limitations means that 2020 loan is prosecutable until 2030. And 2025 sentences are running 40% longer than 2021 sentences for identical conduct.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Riverside County and throughout the Central District of California. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, if you're worried about a loan application from years ago - this article explains exactly what you're facing and what options exist.
California Heads a National Strike Force
On September 15, 2022, Attorney General Merrick Garland selected the Central District of California and the Eastern District of California to jointly head one of three national COVID-19 Fraud Strike Force teams. Most people missed this announcement. It matters enormously.
This wasn't just adding California to the list of districts prosecuting pandemic fraud. It was designating California as a national LEADER. The Central District - which covers Los Angeles, Orange County, Riverside, San Bernardino, Ventura, and several other counties - now has dedicated prosecutors whose entire job is pandemic fraud. Enhanced resources. Federal agent support. An explicit mandate from the Attorney General to pursue these cases aggresively.
The numbers are staggering. Through December 31, 2024, more than 3,096 defendants have been charged nationally with pandemic relief fraud. Of those, 2,532 have been found guilty - that's an 82% conviction rate. And 81% of convicted defendants recieved prison time. This isn't a program where people get probation and community service. People are going to federal prison.
What this means for Riverside County: you're not in some quiet corner of the federal system. Your in one of the most active, well-resourced, aggressively prosecuting districts in the entire country. The Central District has its own Riverside Branch Office specifically to handle Inland Empire cases. They're not short on bandwidth. There not short on interest.
Riverside County Is Ground Zero
These aren't distant prosecutions happening in other states. Your neighbors are going to federal prison right now.
Muhammad Noor Ul Ain Atta of Corona was sentenced to 102 months in federal prison - over eight years. His crime: $6.6 million in fraudulent PPP and EIDL loan applications for shell companies. He submitted 11 fraudulent applications. Wired $1.3 million to Pakistan. The judge ordered him to pay $6,643,540 in restitution. That's restitution he'll owe even after spending eight years in federal prison.
Jasmine Mallard-McCarter of Eastvale - right here in Riverside County. 84 months federal prison. Seven years. She advertised PPP fraud services on Instagram under the name "JassyMC." Impersonated others. Used their personal information to file fraudulent applications. Total fraud: $1.7 million. Restitution ordered: $1,765,407.
Vanessa Williams of Corona and Denise Mata of Moreno Valley were arrested in October 2024 on a 23-count indictment. The government alleges a $3.5 million fraud scheme involving more than 100 co-schemers. Williams faces nine counts of wire fraud. Mata faces ten counts plus aggravated identity theft. There cases are pending - but the indictment describes a kickback operation where they recruited others to file fraudulent applications and took payments from the proceeds.
This is happening in Corona. In Moreno Valley. In Eastvale. The Riverside Branch Office of the U.S. Attorney's Office exists specificaly to handle Inland Empire federal prosecutions. They have prosecutors who know this area. Who live in this area. Who aren't distracted by LA cases becuase the Riverside office handles Riverside cases.
The 10-Year Clock and Why 2025 Sentences Are Worse
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people didn't notice. 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.
But here's what most people miss: the clock doesn't start from when you applied for the loan. It starts from your LAST fraudulent act related to that loan. If you filed for forgiveness in 2022 and submitted documentation claiming you spent the money properly - when you didn't - the clock starts from that forgiveness application. That could mean prosecutors have until 2032.
"Not everyone gets caught though." True. The SBA Office of Inspector General estimates $64 billion in PPP fraud. With only 3,000+ prosecutions, the odds of any individual getting prosecuted might seem low. But you have no way of knowing if your in the crosshairs until federal agents show up. The government is using AI and data analytics to identify fraud patterns. Banks filed Suspicious Activity Reports on transactions that looked unusual. The SBA referred over 669,000 potentially fraudulent loans to the OIG for investigation. Hundreds of investigations are still underway.
And here's the uncomfortable truth about timing: defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. The era of pandemic-era leniency is completley over. Judges who might have shown sympathy in 2021 - understanding the economic chaos, the desperation, the confusing guidance - are now handing out serious prison time.
Consider the paradox. Muhammad Atta got 102 months for $6.6 million. But a Cincinnati defendant got 18 months for just $21,000 in PPP fraud. The amount doesn't protect you. Federal judges are including prison time in nearly every PPP fraud sentencing regardless of the dollar amount involved.
One application can trigger multiple charges. Wire fraud carries 20-30 years. Bank fraud carries 30 years. False statements to the SBA - 30 years. Money laundering - 20 years. Aggravated identity theft adds 2 years mandatory consecutive. Theoretically, one fraudulent PPP application creates exposure exceeding 100 years. In practice, sentences don't reach that level. But charge stacking gives prosecutors enormous leverage in plea negotiations. When your facing five federal charges, the pressure to plead guilty is immense.
What Actually Happens and What to Do
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. It isn't. There have been multiple 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. Casual. Like they're just trying to understand what happened. Their not on your side. Every word becomes evidence. Every inconsistency becomes a potential false statement charge.
The second trap: voluntary repayment.
Some people, panicking, decide to repay the loan thinking it will make the problem disappear. 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 governments case against you. You just demonstrated that you KNEW something was wrong.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction is a separate federal crime.
- Don't discuss the matter with others who may be involved. Those conversations can become evidence.
- Don't contact the SBA or make any voluntary payments without counsel.
- Contact a federal defense attorney immediately.
Todd Spodek has handled PPP fraud cases in the Central District of California. He understands the difference between cases still at the SBA OIG stage - where civil resolution may be possible - and cases that have been referred to the FBI for criminal investigation. The stage of your case determines what options exist.
When Your Ready
If your in Riverside County - or anywhere in the Inland Empire - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand.
The consultation is free. Theirs no obligation. What you'll get is an honest assessment of your situation. Is this still at the administrative stage? Has it been referred to criminal investigators? What does the evidence likely look like? What are realistic outcomes - not best-case fantasies, but actual possibilities based on how these cases are playing out in the Central District right now?
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 options exist. Waiting until federal agents show up at your door eliminates leverage you could have used.
Were here when you need us.
