San Antonio PPP Loan Fraud Lawyers
You took a PPP loan in 2020. Maybe 2021. The money came fast, the guidance was confusing, and everyone seemed to be getting funds whether they technically qualified or not. You filled out the application, received the money, and moved on with your life. That was years ago. Surely the government has moved on too.
They haven't.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in San Antonio and throughout the Western District of Texas. If you've received a letter from the SBA Office of Inspector General, if federal agents have contacted you, or if you're watching the news and realizing your PPP application might have problems - this article explains what you're actually facing and what options still exist.
The federal government built a 10-year prosecution assembly line for PPP fraud. And the Western District of Texas - which covers San Antonio - is one of the busiest stops on that line.
They Gave Themselves a Decade to Come For You
In August 2022, Congress extended the statute of limitations for PPP fraud from five years to ten years. They made it retroactive. A loan from 2020 is prosecutable until 2030. A loan from 2021 until 2031.
Full decade.
Most people missed this. They assumed the five-year window applied. They thought they were safe once 2025 rolled around. They were wrong. Congress changed the rules after the game was over - and they changed them backwards in time.
As of December 2024, the DOJ continues to prioritize pandemic fraud prosecution. The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, SBA OIG, and Secret Service. According to Pandemic Oversight data, 3,096 defendants have been charged with pandemic relief fraud. 82% have been convicted. 81% of those convicted recieved prison time.
The investigation pipeline hasnt slowed down. Its accelerated. The median time from referral to indictment has decreased by 45% compared to early pandemic cases. What used to take 8-12 months now takes 4-6 months.
Every PPP loan from 2020 to 2021 remains prosecutable. The government has time. But once they move, things happen fast.
And this is were it gets worse for San Antonio.
What WDTX Sentences Actually Look Like
You might think the amount of your PPP loan determines your fate. Small fraud, small consequences. Big fraud, big prison.
Thats not how it works in the Western District of Texas.
In October 2024, a Georgetown couple was sentenced in WDTX federal court. Michael Fullerton got 286 months. Thats nearly 24 years. His wife Tiffany got 108 months - 9 years. Combined, 32 years in federal prison. For PPP loans. Their scheme involved approximately $3.5 million across six fraudulent applications. They used the funds to try to start a marijuana dispensary in Oklahoma, bought a motor home, luxury watches, and a boat. Michael was charged with 11 counts. Tiffany went to trial and lost.
Now consider Christopher James Phillips. Former FBI employee from Schertz - just outside San Antonio. He submitted a false PPP application for about $40,000. Used his FBI credentials to verify his identity. Created a fake LLC. Submitted a fabricated IRS Form 941.
His sentence?
Three months home confinement and five years probation.
Same district. Same type of crime. Same federal courthouse system.
286 months versus 3 months. Thats the disparity.
You might think Phillips got lucky becuase his amount was smaller. Thats not the full picture. Phillips had counsel early. He pleaded guilty. He avoided trial. He didn't have aggravating factors like conspiracy charges or money laundering. The Fullertons fought it - Tiffany went to trial and lost. Michael had 11 separate counts stacked against him.
The difference isnt just about how much you took. Its about what you did after you got caught. Its about timing. Its about having counsel before you make fatal mistakes. Its about avoiding the charge stacking that turns one PPP application into a 100-year theoretical exposure.
Antonio Garcia - another San Antonio defendant - got 51 months for $1.3 million in PPP fraud. He fabricated payroll records for construction companies. Used the funds for vehicles, real estate, jewelry. Still got over four years in federal prison.
The sentencing cliff is real. Federal judges in WDTX are not showing leniency in 2024-2025. The early pandemic sympathy is completly gone.
The 6-12 Month Window Nobody Tells You About
Most people dont understand how PPP fraud investigations actualy work.
Theres a pipeline. First, the SBA Office of Inspector General runs your loan through data analytics. They flag anomalies - payroll numbers that dont match IRS records, employee counts that seem inflated, businesses that were dormant before PPP. If your loan gets flagged, it goes into an OIG review process.
During this stage - typically lasting 6 to 12 months - there may still be options for civil resolution. Repayment plus a fine. A False Claims Act settlement. Not pleasant, but not a federal felony conviction either.
Then the case gets referred to the FBI for criminal investigation.
Once that happens, the window closes. The options collapse. Your facing criminal prosecution in federal court, not civil settlement negotiations with the SBA.
This is were timing matters more then anything else.
The problem is most people dont know were they are in this pipeline. They recieve a letter from SBA OIG and dont realize what it means. They wait. They hope it goes away. They talk to investigators without counsel - and sometimes pick up additional obstruction or false statement charges in the process.
Or worse - they panic and voluntarily 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 without counsel can actualy strengthen the government's case against you.
The window exists. But you have to know its there. And you have to act while it's still open.
The Moves That Change Your Outcome
Your instinct right now is to explain. To tell your side. To cooperate and hope the government sees you were just confused, not criminal.
Dont.
The single most important rule: never agree to discuss a PPP loan with federal agents without a lawyer present. Several recent cases show defendants who talked to investigators without counsel ended up with additional charges - obstruction, false statements to federal agents - on top of the underlying PPP fraud. The agents seem friendly. Their not on your side.
If your under investigation or concerned you might be:
- Dont destroy any documents. Document destruction becomes a seperate charge.
- Dont discuss the matter with anyone else who was involved. Those conversations can be used against you.
- Dont make voluntary payments to the SBA without counsel. This can become consciousness of guilt evidence.
- 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 where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority. That distinction - knowing which stage your in - changes everything about strategy.
Spodek Law Group offers free consultations for PPP loan fraud matters in San Antonio and throughout the Western District of Texas.
What you'll get is an honest assessment. Are you still at OIG stage where options might exist? Has the case been referred to 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 WDTX?
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 to build cases. But the window for intervention - the 6-12 months where civil resolution might be possible - that window closes.
Were here when your ready.
