Suffolk County PPP Loan Fraud Lawyers
You got a PPP loan back in 2020. Maybe 2021. The government was practically throwing money at businesses during the pandemic - you filled out the application, got approved, used the funds. Years passed. You assumed if there was going to be a problem, it would have happened by now.
You shouldn't have.
The federal government already knows about most PPP fraud. The SBA referred over 669,000 potentially fraudulent loans to the Office of Inspector General for investigation. Congress extended the statute of limitations to 10 years - retroactively. That means a 2020 loan is prosecutable until 2030. You're not hiding from anyone. You're in line. And Suffolk County falls under the Eastern District of New York, one of the busiest federal districts in the country for white-collar prosecution.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Suffolk County and throughout the Eastern District of New York. If you're under investigation, if you've received a letter from SBA OIG, or if federal agents have shown up asking questions - this article explains what you're actually facing and what options might still exist.
You're Not Hiding - You're In Line
In August 2022, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act. Most people never heard about it. What it actualy did was extend the statute of limitations from 5 years to 10 years - and it applied retroactively.
A PPP loan from 2020 is prosecutable until 2030. A loan from 2021 is prosecutable until 2031. Every single PPP loan ever issued is now subject to potential prosecution for a full decade from the date of the offense.
Heres the part nobody talks about. The SBA used data analytics and manual reviews to flag suspicious loans. They refered over 669,000 loans to the OIG for investigation. These aren't random audits. The algorithm already found the anomalies. If your application had inconsistencies - inflated payroll numbers, questionable employee counts, uses of funds that didn't match the rules - it's probly already in the queue.
The question isn't IF they find you. It's WHEN your file reaches the top of the queue.
Suffolk County residents have already seen this play out. Niall Alli, a Long Island resident, was sentenced to 48 months in federal prison right here in Central Islip - the Suffolk County federal courthouse. He used $1.7 million in PPP funds for Patek Philippe watches, cryptocurrency, and private school tuition. Donna Ingram of Long Island was indicted in May 2024 for a $3.28 million PPP scheme - she submitted 27 fraudulent applications and recieved kickbacks of over $430,000. Damaris Beltre from Freeport faces a 42-count indictment for $12 million in fraud. These are your neighbors.
The Numbers From the Assembly Line
According to Pandemic Oversight, as of December 31, 2024:
- 3,096 defendants have been charged with pandemic relief fraud
- 2,532 have been found guilty - thats 82%
- 1,741 recieved prison time - 81% of those convicted
- 2,008 were ordered to pay restitution - 94%
- Sentences ranged from 1 day to 30 years, with the majority between 1-5 years
More then 440 defendants were ordered to pay $1 million or more in restitution. The highest restitution amount reached $71 million.
The assembly line is getting faster.
The median time from initial referral to indictment has decreased by 45% compared to 2022-2023. What used to take 8-12 months now takes 4-6 months. The government has figured out how to process these cases more efficently. They're not slowing down. There accelerating.
These aren't just numbers on a page. This is industrial-scale prosecution. And Suffolk County is in EDNY - a district that has been particuarly aggressive with PPP fraud cases.
Why 2025 Sentences Are Brutal
Early in the pandemic, some federal judges showed leniency. The economic chaos. The desperation businesses faced. The confusing and contradictory guidance about what qualified. Some judges gave probation or minimal prison time for smaller frauds.
Those days are gone.
Defendants sentenced in 2024-2025 are recieving sentences aproximately 40% longer than defendants who committed identical conduct but were sentenced in 2021-2022. Federal judges have lost patience. The "I was confused" defense doesn't work anymore. The "everyone was doing it" defense definitely doesn't work.
Recent sentencing examples from DOJ press releases:
- Richard Nieto: 46 months for $913,000 (June 2025)
- Nevada defendant: 15+ years for $11 million (August 2025)
- Kansas City woman: 51 months for $900,000 (2025)
- Cincinnati defendant: 18 months for $21,000 (March 2025)
That last one deserves attention. Do people actually go to prison for a $20,000 PPP loan?
Yes.
The amount doesn't protect you. Federal judges in 2025 include prison time in nearly every PPP fraud sentencing regardless of the amount involved. This isn't about proportionality anymore. Its about deterrence. The government wants headlines.
Heres how one application becomes five federal charges:
- Wire Fraud (18 U.S.C. § 1343) - up to 30 years
- Bank Fraud (18 U.S.C. § 1344) - up to 30 years
- False Statements to SBA (18 U.S.C. § 1014) - up to 30 years
- Money Laundering (18 U.S.C. § 1956) - up to 20 years
- Aggravated Identity Theft (18 U.S.C. § 1028A) - mandatory +2 years consecutive
One PPP application can create theoretical exposure exceeding 100 years. In practice, sentences don't reach that level - but charge stacking gives prosecutors enormous leverage in plea negotiations.
Leon Miles in Brooklyn: 72 months federal prison, forfeiture of a 2020 Bentley, restitution of $598,299.39. All from PPP fraud.
What to Do Before They Call
The single most important rule you'll read in this article:
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're not on your side.
Theres another 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 doesn't make it go away - it can actually strengthen the governments case against you.
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.
There's a window most people don't know about. 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, 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.
That window disappears once criminal charges are filed.
Todd Spodek has handled PPP fraud cases in the Eastern District of New York. 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 Islip courthouse is familiar territory.
When You're Ready
If you're in Suffolk County - or anywhere on Long Island - and you're facing a PPP loan fraud investigation, Spodek Law Group can help you understand where you stand and what options remain.
The consultation is free. There's 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 EDNY?
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 your file reaches the top of that queue, things move fast. The earlier you have counsel, the more leverage exists.
Don't wait until federal agents knock on your door.
We're here when you need us.
