Seattle PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. Everyone in Seattle did - the government was handing out money to keep businesses alive during the pandemic. You filled out the application, got approved, used the funds, maybe got forgiveness. Years passed. You moved on. You figured Washington state wasn't exactly Florida or New York when it came to federal prosecution priorities. You assumed the government had moved on too.
It hasn't.
The federal government turned PPP loan fraud prosecution into an assembly line - and Seattle is directly in the crosshairs. The Western District of Washington under U.S. Attorney Tessa Gorman has been just as aggressive as any other district in the country. Tyler Keith Andrews got 196 months - over sixteen years - for PPP fraud in Washington. 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 Seattle and throughout the Western District of Washington. 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 might still exist.
Seattle Is Not Safe
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people in Seattle missed what it actualy did.
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 to come for you. And there using it. According to Pandemic Oversight, as of December 2024: 3,096 defendants charged with pandemic relief fraud. 2,532 convicted - that's an 82% conviction rate. Of those convicted, 1,741 received prison time. That's 81%. IRS Criminal Investigation reports a 97.4% conviction rate in prosecuted COVID fraud cases.
The SBA Office of Inspector General has recieved over 669,000 referrals for potentially fraudulent PPP and EIDL loans. The hotline saw a 19,500% increase in call volume during the pandemic - over 238,000 calls. Think about what that means. Coworkers, ex-spouses, disgruntled employees, former business partners - they're all reporting. And the government is working through the queue.
The numbers are national. But here's what's happening in your backyard.
The Cases That Destroyed Lives in Washington
U.S. Attorney Tessa Gorman hasn't been running a formal pandemic fraud Strike Force like some districts. She hasnt needed one. Her office has been prosecuting PPP fraud cases aggressively since 2023, treating pandemic relief applications like organized fraud schemes.
Recent Western District of Washington PPP fraud cases:
- Paradise Williams (Seattle): The leader of a $6.8 million fraud ring. She personally submitted over 125 fraudulent applications. Recruited more then 50 associates to pose as fake tenants, landlords, and business owners. Used the proceeds for luxury cars, cosmetic surgery, jewelry, designer goods. Sentenced to 60 months federal prison, plus $2.79 million in restitution.
- Tyler Keith Andrews (Washington): $16.3 million total fraud. He charged people 10% fees to help them submit fraudulent applications. His sentence? 196 months in federal prison. Over sixteen years. That's the harshest PPP fraud sentence in Washington state.
- Mukund Mohan (Clyde Hill, WA): A tech executive. $5.5 million in PPP loans across 8 fraudulent applications for 6 different companies. Sentenced to 24 months.
- Antonio Crawford (Washington): $203,000 in PPP fraud. Sentenced in November 2024 to 45 months federal prison, plus 5 years supervised release and $203,347 in restitution.
196 months. Over sixteen years in federal prison. For PPP fraud. In Washington state. The government made an example of Tyler Keith Andrews because he wasn't just committing fraud - he was helping others do it. Charging fees. Building a business out of it. But the message was clear: Washington prosecutors take this seriously.
One PPP application can trigger multiple federal charges. Wire fraud under 18 U.S.C. § 1343 carries 20-30 years. Bank fraud is 30 years. False statements to the SBA is 30 years. Money laundering is 20 years. Aggravated identity theft adds a mandatory 2 years consecutive. Paradise Williams faced wire fraud AND money laundering charges. When you stack these together, theoretical exposure can exceed 100 years. In practice, sentences don't reach that level - but charge stacking gives prosecutors enormous leverage.
So what can you actualy do? Most people's instincts are completley wrong.
The Window That Closes Forever
Here's something most people in Seattle don't 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, their 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. The difference between civil resolution and criminal prosecution can be the difference between paying money and losing years of your life in federal prison.
Some people look at the cases above and think: "Those were big fraudsters. I only got $50,000. They're not coming for me."
Maybe. Prosecutors do tend to focus on larger cases first. But here's what that thinking misses. They have 10 years. They have 669,000 referrals. They're working through the queue. The question isnt IF they get to smaller cases. Its WHEN.
And heres the trap most people fall into.
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. 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 federal prosecutors think and what the Western District of Washington is actually doing with PPP cases.
Your instincts about what to do are probably wrong. Here's what actually helps.
What Actually Protects You
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. There not on your side.
If you're in Seattle and under investigation or concerned you might be:
- Don't destroy any documents. Document destruction can become a separate 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 advising you first. This can be used as consciousness of guilt evidence.
- Contact a federal defense attorney immediately. The earlier you act, the more options exist.
Todd Spodek has handled PPP fraud cases and understands the difference between OIG-stage investigations where civil resolution may be possible, and FBI-stage investigations where criminal defense becomes the priority. The Western District of Washington is aggressive, but there are still paths through this if you act early enough.
When Your Ready
If you're in Seattle - or anywhere in Western Washington - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options might still 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 Western District of Washington?
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.
Don't wait until federal agents show up at your door.
Were here when you need us.
