San Bernardino County PPP Loan Fraud Lawyers
You got a PPP loan back in 2020. Maybe 2021. The government was handing out money faster than anyone could track it. You filled out the application, got approved, used the funds. Maybe you stretched the numbers a little. Maybe more than a little. But that was years ago. You moved on. Assumed the government had moved on too.
It hasn't. The federal government is still coming.
The Central District of California was selected to lead one of only three national COVID-19 Fraud Strike Force teams. That means San Bernardino County residents face prosecution in the nation's largest federal district - with specialized prosecutors, enhanced resources, and judges who've seen hundreds of these cases. Congress extended the statute of limitations to 10 years. That 2020 loan you thought was forgotten? It's prosecutable until 2030. And sentences are running 40% longer than they were two years ago.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in San Bernardino County and throughout the Inland Empire. 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 about local arrests and wondering if you're next - this article explains exactly what you're facing.
The Strike Force Is Already Here
In September 2022, the Attorney General made a decision that most people never heard about.
The Central and Eastern Districts of California were selected to jointly head one of three national COVID-19 Fraud Strike Force teams. Not some bureaucratic reshuffling. This is the machinery of prosecution. The Strike Force combines FBI agents, IRS Criminal Investigation, SBA OIG investigators, and specialized federal prosecutors into a single unit focused entirely on pandemic relief fraud.
The Central District of California is the nation's largest federal district. It covers Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara, and San Luis Obispo counties. Your facing prosecution in a district where pandemic fraud cases have become routine. The judges here have seen hundreds of these matters. There not impressed by claims of confusion or first-time offender status.
And the cases are happening in the Inland Empire.
In October 2024, federal agents arrested Vanessa Williams of Corona and Denise Mata of Moreno Valley. The indictment alleged a $3.5 million PPP fraud scheme. But heres what made the case different: the scheme involved more than 100 co-schemers. 100+ people. One scheme. In the Inland Empire. Mata faces an additional aggravated identity theft charge - which carries a mandatory two-year consecutive sentence.
Jasmine Mallard-McCarter of Eastvale was sentenced in June 2025. 84 months. Thats seven years in federal prison. She had advertised her PPP fraud scheme on Instagram, attracting more then $1.7 million in fraudulent claims. Seven years because she posted about it online.
These arent cases from Los Angeles. These are your neighbors.
What the Numbers Actually Show
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 - thats 81.8% 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
81%. That's not a statistic. Thats a prediction.
Not probation. Not home confinement. 81% of convicted PPP fraud defendants got federal prison time. And the sentencing cliff makes it worse. Defendants sentenced in 2024-2025 are recieving sentences aproximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022.
Early in the pandemic, some judges showed leniency. Economic chaos. Confusing guidance. Desperation. Some defendants got probation or minimal prison time.
Those days are completly over.
Federal judges in 2025 include prison time in nearly every PPP fraud sentencing - regardless of the amount involved. A Cincinnati defendant got 18 months for $21,000 in PPP fraud. March 2025. $21,000. 18 months. Federal prison.
The amount dosent protect you.
One PPP application can trigger multiple federal charges. Wire fraud under 18 U.S.C. 1343 - 20 to 30 years. Bank fraud - 30 years. False statements to SBA - 30 years. Money laundering - 20 years. Aggravated identity theft - mandatory two years consecutive. One application. Theoretical exposure exceeding 100 years. Prosecutors use this leverage in plea negotiations. Your not negotiating from strength.
The Window That Closes Forever
Heres something most people dont understand about PPP investigations.
There's a window - typically six to twelve months - between when the 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.
But heres the trap most people fall into.
Some people, panicking, decide to voluntarily repay the loan. They think it will make the problem go away. Show good faith. Do the right thing.
The DOJ has explicitly stated that voluntary repayment can be used as evidence of consciousness of guilt.
Your instinct to make it right? It can become exhibit A in the prosecution's case. Returning the money doesn't make it go away - it can actualy strengthen the government's evidence 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 federal prosecutors in the Central District of California actualy think. What works in other districts may not work here.
That window closes. Forever.
Once the FBI has your case, the dynamics change completly. Criminal charges become likely. The leverage that existed during OIG review evaporates. If your still in that window, you need to act. If you dont know whether your in that window, you need to find out.
Getting the Call Right
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. They might tell you this is just routine. There not on your side. Every word you say becomes evidence. Every explanation becomes a potential false statement charge if investigators later decide something wasnt accurate.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a seperate obstruction 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 federal fraud cases in California. 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 Central District of California prosecutes more PPP fraud cases then almost any other district in the country. That requires counsel who knows this specific landscape.
When Your Ready
If you're in San Bernardino 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 and what options exist.
The consultation is free. Theirs 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 Central District of California?
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.
Dont wait until federal agents show up at your door.
Were here when you need us.
