Washington DC PPP Loan Fraud Lawyers
You got a PPP loan in 2020. Maybe 2021. You're in Washington DC - the nation's capital, where the federal government lives and breathes. You filled out the application during the chaos of the pandemic, got approved, used the funds. Years passed. You assumed the government had bigger things to worry about than your loan from half a decade ago.
It hasn't moved on.
The federal government extended the PPP fraud statute of limitations to 10 years - retroactively. That 2020 loan is prosecutable until 2030. A 2021 loan until 2031. And Washington DC is not immune. A former DC Homeland Security Commissioner was just sentenced to 15 months in February 2025 for $844,000 in PPP fraud. The DOJ has a 96% conviction rate in prosecuted PPP cases. But here's what makes this complicated: they referred nearly 3 million loans to the SBA Office of Inspector General. They cannot prosecute everyone. The only question is whether your loan becomes one they choose to charge.
Welcome to Spodek Law Group. We handle federal PPP loan fraud defense in Washington DC and throughout the District of Columbia federal court. If you've received contact from the SBA OIG, if federal agents have reached out, or if you're simply worried about a loan you took years ago - this article explains where things actually stand and what options may still exist.
DC Is Prosecuting PPP Fraud Right Now
February 2025. Not 2022. This year.
Wendy Nicole Villatoro, 40, formerly a DC Homeland Security Commissioner and USDA employee, was sentenced to 15 months in federal prison for PPP fraud. She submitted eight fraudulent PPP applications and 15 EIDL applications between March 2020 and August 2021. She tried to steal between $2.6 million and $5.5 million. She actualy obtained $844,000. She used the money to pay off student loans, pay off a BMW SUV, and buy luxury items.
She's not alone in DC.
Recent Washington DC PPP fraud cases:
- Jennifer May (August 2025): A DC campaign finance consultant sentenced to more then 12 months for $1.5 million in EIDL fraud. Used funds to buy real estate in Virginia and a restaurant in Northeast DC.
- Elias Eldabbagh (Pending): Indicted on 34 counts for a scheme to steal more then $17 million in PPP and EIDL funds. Used stolen tax returns from a DC consulting firm and stolen identities. Successfully stole over $2.3 million before being caught.
And its not just individuals. In September 2025, the U.S. Attorney for DC announced civil settlements with six nonprofit organizations - including the Armenian National Committee of America, Center for Immigration Studies, and DACOR - totaling over $3 million to resolve False Claims Act allegations related to there PPP loans.
This is not winding down. This is ramping up. The cases keep coming becuase the statute of limitations gives prosecutors until 2030 or 2031 to bring charges.
But prosecuting people is one thing. What are the actual odds if you get flagged?
The Numbers That Should Change Your Thinking
According to Pandemic Oversight, as of December 31, 2024: 3,096 defendants have been charged with pandemic relief fraud. Of those, 2,532 were found guilty.
Thats a 96% conviction rate in prosecuted cases.
If they charge you, you will almost certainly be convicted.
But heres the thing most people miss. The SBA referred nearly 3 million potential fraud loans to the Office of Inspector General. Over 669,000 were flagged by algorithms. They cannot prosecute 3 million cases. The government has to be selective.
So the paradox: overwhelming conviction rate, but limited prosecution capacity. The question isnt wheather you'll be convicted if charged - the answer is almost certainly yes. The question is wheather your loan becomes one of the cases they choose to pursue.
- 2,532 convicted (96% rate)
- 1,741 received prison (81% of convicted)
- Sentences 40% longer in 2024-2025 then 2021-2022
- 10-year statute runs until 2030-2031
And dont think a small loan amount protects you. A Cincinnati defendant got 18 months for $21,000 in PPP fraud. March 2025. The amount doesn't matter as much as you think. Federal judges in 2025 include prison time in nearly every PPP sentencing regardless of the dollar figure.
One application can trigger multiple federal charges: wire fraud (20-30 years), bank fraud (30 years), false statements to SBA (30 years), money laundering (20 years), aggravated identity theft (+2 years consecutive). Theoretical exposure exceeding 100 years from a single loan application. Elias Eldabbagh in DC was hit with 34 counts.
The median time from referral to indictment has decreased by 45%. What used to take 8-12 months now takes 4-6 months. The government is getting faster.
So does everyone who got flagged go to prison? No. Theres a window.
The Window Before Criminal Charges
Most people dont understand how PPP investigations actually work.
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, 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. A False Claims Act settlement. Administrative resolution. Not pleasant - but not a federal felony conviction that follows you forever.
Once the FBI takes over and an AUSA decides to prosecute, those options evaporate. Your facing the 96% conviction rate. Your facing federal prison. Your facing a record that destroys careers and families.
But heres were people destroy themselves.
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.
The instinct to "make it right" can actualy strengthen the prosecution's case against you.
This is counterintuitive. Your brain says: return the money, show good faith, maybe they'll leave you alone. But without proper counsel, that repayment becomes Exhibit A in the government's case - proof that you knew you shouldn't have taken the money in the first place.
And theres another myth that gets people in trouble.
Forgiveness does not equal immunity.
Getting your PPP loan forgiven does not protect you from prosecution. The SBA audit window is 6 years from forgiveness approval. The criminal statute of limitations is 10 years. These run seperately. You can be audited, have forgiveness revoked, AND face criminal charges.
So what should you actualy do?
What DC Residents Must Do Before This Window Closes
The single most important rule:
Never talk to federal agents about a PPP loan without a lawyer present.
This sounds obvious. But there have been 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. Their building a case while your explaining yourself.
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 create 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 critical difference between OIG-stage investigations - where civil resolution may still be possible - and FBI-stage investigations where criminal defense becomes the priority.
When Your Ready
If you're in Washington DC and your concerned about a PPP loan - whether you've been contacted by investigators or you're simply worried about something from years ago - Spodek Law Group can help you understand where you stand.
The consultation is free. Theirs no obligation.
What you'll get is an honest assessment. Is this still at the OIG stage where civil options might exist? Has it been referred to the FBI? What does the evidence look like? What are realistic outcomes based on how these cases actually play out in federal court?
Call us at 212-300-5196. The statute of limitations runs until 2030 or 2031. The government has time. But the window between OIG review and criminal referral doesnt stay open forever.
The window exists. Use it.
