Santa Clara County PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Silicon Valley did - tech startups, restaurants, consulting firms, you name it. The government was practically begging businesses to take the money. You filled out the application, got approved, used the funds, maybe even got forgiveness. Years passed. You moved on. You assumed the government had moved on too.
It hasn't.
The federal government gave itself a full decade to prosecute every PPP loan ever issued - and Santa Clara County sits directly in the Northern District of California's jurisdiction. A woman from Santa Clara was just sentenced to 18 months in federal prison in September 2025 for PPP fraud. The 10-year statute of limitations means that 2020 loan you thought was forgotten is prosecutable until 2030.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Santa Clara County and throughout the Northern District of California. 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 actually exist.
The Clock Congress Gave Prosecutors
In August 2022, Congress extended the statute of limitations for PPP fraud from 5 years to 10 years. Most people missed what that actualy meant.
It was retroactive.
A PPP loan from April 2020 is prosecutable until April 2030. A loan from 2021 until 2031. Congress didnt forget about pandemic fraud. They gave prosecutors an extra five years specifically becuase they knew millions of applications would take years to investigate. The SBA Office of Inspector General has recieved approximately 54,000 PPP loan referrals for likely fraud, according to GAO reports. That's 54,000 files sitting in a queue, waiting.
The COVID-19 Fraud Enforcement Task Force coordinates across FBI, IRS Criminal Investigation, SBA OIG, Secret Service, and other agencies. They have strike forces dedicated to this. And there not slowing down.
So that's the timeline. Now here's what's happening locally.
Santa Clara County Is Already in the Crosshairs
The Northern District of California covers San Francisco, Oakland, San Jose, and the entire Bay Area - including Santa Clara County. This is one of the most active federal districts for white-collar prosecution in the country.
Cassie Will-Darnall, 53, of Santa Clara.
Sentenced to 18 months in federal prison in September 2025. She submitted two fraudulent PPP applications. In one, she claimed her company had 35 employees with an average monthly payroll of $816,551. The company had no employees. No payroll. She recieved $1.86 million from that loan alone. Total fraud: approximately $2.8 million.
Shes not the only one.
- Frank Mosley (Oakland): 30 months in federal prison. He was a city of Oakland tax enforcement officer and former IRS revenue officer. His professional background and government experience didnt protect him. Convicted in a conspiracy that netted over $3 million.
- Oakland woman: 36 months for million-dollar pandemic relief fraud. Three years in federal prison.
- Emanuel Tucker (Canyon Lake, CA): Pleaded guilty to his role in a $15.9 million scheme. Used the funds to buy a Ferrari F8 Tributo, a Bentley Continental, multiple million-dollar houses, and a $400,000 diamond necklace. Faces up to 20 years.
According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants have been charged with pandemic relief fraud. 2,532 were convicted. Thats 82%. Of those convicted and sentenced, 81% recieved prison time. Not probation. Prison.
Those are the cases that made it to sentencing. But theres something that happens earlier - something most people dont know about.
The Window That Disappears When Charges Are Filed
Heres something practitioners understand that most people don't.
There's a window - typically six to twelve months - between when the SBA OIG flags your loan and when the case gets referred to the FBI for criminal investigation. During this window, civil resolution may be possible. Repayment plus a fine. Maybe a False Claims Act settlement. Not pleasant, but not a federal felony conviction either.
This leverage completley disappears once criminal charges are filed.
During the OIG review stage, a defense attorney may be able to negotiate a civil disposition. Once its referred to the FBI and an AUSA gets assigned, your negotiating position changes dramaticaly. The government has already decided to pursue criminal charges. The leverage is gone.
But here's were people make a catastrophic mistake.
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. Your returning the money because you know what you did was wrong - thats how prosecutors will frame it. The intuitive thing to do is the wrong thing.
One PPP application can trigger multiple federal charges:
- Wire Fraud (18 U.S.C. § 1343) - 20-30 years
- Bank Fraud (18 U.S.C. § 1344) - 30 years
- False Statements to SBA (18 U.S.C. § 1014) - 30 years
- Money Laundering (18 U.S.C. § 1956) - 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
One application. Theoretical exposure exceeding 100 years. In practice sentences dont reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations.
This is complicated. Not every case has the OIG window. Some go straight to criminal referral. The timing depends on how the case was identified, what evidence already exists, and whether other defendants are involved. The point is: if your still in the OIG stage, there may be options that wont exist later. And if your already facing criminal charges, the defense strategy changes entirely.
Whether your in the OIG stage or already facing criminal investigation, one rule applies.
When Federal Agents Come to Santa Clara
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 recent cases show 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. Their not on your side. Every word becomes evidence.
If your under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a seperate 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 PPP fraud cases and understands the Northern District of California. He knows the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense is the priority.
When Your Ready
If your in Santa Clara County - or anywhere in the Bay Area - and your 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 Northern District?
Call us at 888-997-5177. 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.
Don't wait until federal agents show up at your door.
Were here when you need us.
