Sacramento County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. The pandemic was chaos - the government was practically begging businesses to take money. You filled out the application, got approved, used the funds. Maybe got forgiveness. Years passed. You moved on with your life and assumed the federal government had moved on too.
It hasn't.
The Eastern District of California wasn't randomly assigned PPP fraud cases - it was specifically chosen by the Attorney General to co-lead one of three national COVID-19 Fraud Strike Force teams. Sacramento County residents face prosecution in one of the most aggressive, well-resourced federal districts in the country. Congress extended the statute of limitations to 10 years retroactively. That 2020 loan you thought was forgotten? Prosecutable until 2030. Sentences in 2025 are running 40% longer than they were in 2022 for identical conduct.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Sacramento County and throughout the Eastern District of California. If you're under investigation, if you've received contact from the SBA Office of Inspector General, or if federal agents have shown up asking questions - this article explains what you're actually facing and what options might still exist.
Why Sacramento Is Strike Force Territory
Nobody tells you this part: the Attorney General didn't just assign PPP cases to California federal districts and let them figure it out. The Department of Justice created three COVID-19 Fraud Strike Force teams nationally - one in Miami, one in Baltimore, and one jointly run by the Central District (Los Angeles) and the Eastern District (Sacramento).
Thats not a random bureaucratic designation. Strike Force means enhanced resources. Dedicated federal agents assigned full-time to pandemic fraud. Priority status for prosecution. Coordination between FBI, IRS Criminal Investigation, SBA OIG, Secret Service, and Postal Inspection. The Eastern District tends to move cases faster then most California districts.
This isn't random assignment. Sacramento was chosen.
The Eastern District covers Sacramento, Fresno, Bakersfield, Redding - basically the entire Central Valley and everything north. Courthouses are spread across the region. And while some people assume California is too big and disorganized for the feds to focus on there case, the opposite is true here. The government didn't stumble into this priority. They built it deliberately.
The Prosecution Machine Running at Full Speed
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% conviction rate)
- 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
And the machine is getting faster.
The median time from initial referral to indictment has decreased by 45% compared to 2022-2023. What used to take investigators 8-12 months now takes 4-6 months. The government has gotten more efficient. More ruthless. More focused on moving cases through the system.
Heres what one PPP application can trigger:
One application. Theoretical exposure exceeding 100 years. In practice sentences dont reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations. When your facing five federal charges, the pressure to cooperate intensifies.
The sentencing cliff is real. Defendants sentenced in 2024-2025 are recieving sentences approximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Early pandemic leniency is completley over. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved.
Recent Sacramento/Eastern District cases:
- Akash Kumar Singh (Sacramento, February 2025): Indicted on 7 counts - 4 bank fraud, 3 money laundering. Allegedly obtained $3 million+ through Kryptoblocks software company scheme. Claimed millions in revenue and employee wages when the company had no US employees.
- Tracy Emery Smith (Valley Springs, Calaveras County): 37 months federal prison, $901,035 restitution. Created ghost employees and falsified loan applications.
- Jedrek Upton (Lincoln): Pleaded guilty to wire fraud and money laundering after stealing nearly $1.5 million in COVID relief loans for a lavish lifestyle.
A Cincinnati defendant got 18 months for $21,000 in PPP fraud. March 2025. The amount dosent protect you. Judges are including prison time regardless of loan size becuase the government wants deterrence. They want headlines.
The Window That Changes Everything
Theres something most people dont understand about PPP investigations. Something that actualy matters.
A window exists - 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 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. Not prison. California Advisors LLC, a Sacramento lobbying firm, settled for $580,000 on a $144,340 loan. Civil resolution. No criminal charges.
But heres the trap most people fall into.
Some people, panicking when they hear about investigations, decide to voluntarily repay the loan. They think returning the money makes 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.
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 the Strike Force approach works. What might resolve a case civilly in one circumstance can trigger criminal charges in another.
What to Do Right Now
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 were 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. Cooperation without legal guidance becomes additional charges. The agents seem friendly. Cooperative. There not on your side.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction can become 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.
- Contact a federal defense attorney immediatly. 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 were civil resolution may be possible, and FBI-stage investigations were criminal defense is the priority. The Strike Force designation for the Eastern District makes early intervention even more critical.
When Your Ready
If your in Sacramento County - or anywhere in the Eastern District of California - and your facing a PPP loan fraud investigation, Spodek Law Group can help you understand were you stand and what options might still exist.
The consultation is free. Theres no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage were 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 Strike Force cases play out in Sacramento?
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 - faster in Strike Force territory then anywhere else. 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.
