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So your probably breathing a little easier thinking that since its been a few years since you got that PPP loan, maybe the statute of limitations is about to run out and you’ll be home free. Maybe your counting down the days until you think your safe. Or maybe your lawyer friend told you federal crimes usually have a 5-year limit and your almost there. Look, we get it. Your desperately hoping time is on your side. But we’re about to destroy that hope – Congress extended the statute of limitations to TEN YEARS specifically to catch people like you! Your not even halfway to safety!
The statute of limitations for PPP loan fraud is now 10 YEARS from the date of the offense. That’s right – TEN FULL YEARS! On August 5, 2022, President Biden signed two bills into law: the PPP and Bank Fraud Enforcement Harmonization Act and the COVID-19 EIDL Fraud Statute of Limitations Act. These laws extended the deadline from what was previously 5 or 6 years to a full decade.
Let’s put this in perspective for you. If you got a fraudulent PPP loan in April 2020 when the program first started, prosecutors have until April 2030 to charge you. Got one in 2021 when everyone was doing it? They have until 2031. That’s SIX MORE YEARS from today that your going to be looking over your shoulder, jumping every time the doorbell rings, panicking every time you see a government letter in the mail.
This isn’t normal! Most federal crimes have a 5-year statute of limitations. Even serious crimes like tax evasion usually have 6 years. But Congress specificaly changed the law for PPP fraud because they were so angry about the massive theft. They wanted to make absolutely sure that EVERYONE who committed fraud would be caught and prosecuted, no matter how long it takes!
Congress extended the statute of limitations because they realized the sheer scale of the fraud – over $200 billion stolen – would take many years to investigate properly. The Pandemic Response Accountability Committee lobbied hard for this extension, arguing they needed more time to catch sophisticated fraudsters who covered there tracks.
Representative Nydia Velazquez, who sponsored one of the bills, said “We cannot allow those who stole from taxpayers to get away with it simply because the clock ran out.” Think about that – Congress literally changed the law specifically to make sure people like you couldn’t escape justice! They were that determined to catch every single person who committed PPP fraud.
But here’s what really motivated them – public outrage. Every news story about someone buying a Lamborghini with PPP money made voters furious. Politicians realized they could score easy points by being tough on pandemic fraud. So they gave prosecutors the maximum amount of time possible to hunt down fraudsters. And trust us, prosecutors are planning to use every single day of those 10 years!
This is crucial to understand – the statute of limitations starts from the date of the LAST fraudulent act, not when you got the loan! So if you got a PPP loan in 2020 but filed for forgiveness in 2021, the clock starts in 2021. If you lied on your tax returns about the loan in 2022, the clock resets to 2022. Every fraudulent act extends your exposure!
And here’s something that’ll really scare you – if there’s a conspiracy charge, the statute doesn’t start until the LAST act of the conspiracy. So if you worked with your accountant or business partner, and they did something related to the fraud even years later, your statute of limitations keeps extending. We’ve seen cases where people thought they were safe, but there accountant filed an amended return three years later, and boom – the clock reset!
The government is very clever about this. They’ll charge you with multiple crimes with different limitation periods. Wire fraud? 10 years now. Bank fraud? Always been 10 years. Tax fraud related to the PPP loan? 6 years from when you filed. Money laundering? 5 years from the last transaction. They layer these charges so even if one expires, others are still valid!
Absolutely, 100% YES they can and will prosecute you in 2030 for a 2020 loan! The law is crystal clear – they have 10 years from the date of the offense. The Department of Justice has already stated publicly that they plan to pursue PPP fraud cases through the entire statutory period.
Think this is just talk? Look at historical precedent. The government prosecuted S&L fraud cases for over a decade. They’re STILL prosecuting 2008 financial crisis cases. When hundreds of billions are stolen, the government NEVER gives up. They have entire departments dedicated to long-term fraud prosecution. Your case file will sit in a database for the next 6 years, waiting for an prosecutor to pick it up.
And here’s the really terrifying part – the evidence against you gets STRONGER over time, not weaker. Your bank records are permanent. Your loan application is saved forever. Your tax returns are all digital. Meanwhile, your memory of events fades, witnesses disappear, and your ability to defend yourself weakens. Waiting doesn’t help you – it helps them!
If your thinking loan forgiveness protects you, your dead wrong! Loan forgiveness is NOT immunity from prosecution. In fact, fraudulent forgiveness is a separate crime with its own 10-year statute of limitations! So if you lied to get forgiveness in 2021, they can prosecute you for that until 2031, completely separate from the original loan fraud.
The SBA Inspector General has explicitly stated they’re reviewing forgiven loans for fraud. They’re using new technology to analyze forgiveness applications and comparing them to tax records, payroll reports, and bank statements. Thousands of forgiven loans have already been flagged for criminal investigation.
We’ve seen people arrested years after there loan was forgiven. They thought they were in the clear, moved on with there lives, and then got indicted for false statements on the forgiveness application. The forgiveness letter from the SBA means nothing if the forgiveness was obtained fraudulently. It actually makes things worse because now your guilty of TWO crimes – loan fraud AND forgiveness fraud!
Here’s where it gets complicated – different charges related to PPP fraud have different statutes of limitations, but they’re ALL long enough to destroy your life. Wire fraud and bank fraud now have 10 years thanks to the new law. Mail fraud has 5 years. Tax fraud has 6 years. Making false statements has 5 years. Conspiracy charges can extend even longer if the conspiracy continues.
The prosecutors are smart about this. They’ll charge you with multiple crimes to maximize there time. Even if the mail fraud charge expires after 5 years, the wire fraud charge is good for 10. If the false statements charge expires, the bank fraud is still valid. They layer charges specifically to avoid statute of limitations problems.
And don’t forget about civil cases! The False Claims Act has its own statute of limitations – 6 years from the violation OR 3 years from when the government knew about it, whichever is later, up to 10 years maximum. So you could face criminal charges AND civil lawsuits for the same fraud, with different time limits!
Think federal charges are your only worry? Think again! Many states have there own fraud statutes that could apply to PPP fraud, and these have DIFFERENT limitation periods. Some states have 6 years for fraud, others have 7, some have no limit for fraud over certain amounts! State attorneys general are increasingly prosecuting PPP fraud under state law.
For example, if you submitted false documents to a state-chartered bank, that could be state fraud. If you used PPP funds to pay state taxes fraudulently, that’s state tax fraud. If you laundered PPP money through state-regulated businesses, that’s state money laundering. Each state charge has its own statute of limitations that runs independently from federal charges.
We’re seeing coordinated federal-state prosecutions where even if federal charges are time-barred, state charges continue. Or where defendants plead guilty to federal charges thinking there done, then get hit with state charges years later. The 10-year federal limit might actually be the SHORTEST limitation period you face!
Terrifyingly, YES! The statute of limitations can be “tolled” (paused) or extended under certain circumstances. If you leave the country, the clock stops running while your gone. If you hide assets or evidence, that can extend it. If the government issues a subpoena or files a sealed indictment, that can stop the clock even if you don’t know about it.
There’s also something called the “fugitive disentitlement doctrine” – if your considered a fugitive (even if you don’t know there looking for you), the statute might not run at all. We’ve seen cases where people traveled abroad for business, the government claimed they were fleeing, and added years to the limitations period.
Congress could also extend it AGAIN if there’s political pressure. They already extended it once from 5-6 years to 10 years. If recovery rates remain low and public anger remains high, they could extend it to 15 or 20 years. Don’t think it can’t happen – they did exactly this with terrorism financing and major fraud cases. Your never really safe!
Let’s say somehow you make it to year 10 without getting caught. Are you finally safe? Not necessarily! If the government has started an investigation or filed a sealed indictment before the deadline, you can still be prosecuted. You might not even know your under investigation until year 11 when they unseal the indictment and arrest you!
Plus, even after criminal prosecution is barred, you still face civil liability forever. The government can still sue you to recover the money. The IRS can still audit you and assess taxes and penalties. Professional licensing boards can still take action. Your credit can still be destroyed. Banks can still refuse to work with you. The consequences never really end!
And here’s the worst part – even if you somehow escape prosecution, you’ll have spent 10 years of your life in constant fear. Every day wondering if today’s the day. Every knock at the door causing panic. Every official letter making your heart race. Is that really living? Is that freedom? The psychological torture of waiting might be worse than just facing the music now!
If your thinking about trying to wait out the statute of limitations, let us be brutally honest – that’s the WORST strategy possible. First, you probably won’t make it. With a 97.4% conviction rate and thousands of active investigations, the odds of avoiding prosecution for 6+ more years are basically zero.
Second, the longer you wait, the worse it gets. Sentencing guidelines consider acceptance of responsibility. Coming forward now might get you probation. Getting caught in year 9 guarantees prison time. Prosecutors are much more lenient with people who self-report than those who try to run out the clock.
Third, the stress will destroy you. We’ve seen clients develop serious health problems from the constant anxiety. Marriages destroyed. Businesses ruined. Mental health crumbling. The toll of living in fear for 10 years is worse than any prison sentence. At least in prison, you know when your getting out. Living in fear, you never know when it ends!
WARNING: You have 6+ MORE YEARS of exposure for PPP fraud!
The 10-year statute of limitations means your not even close to safe!
Call us NOW at 212-300-5196 BEFORE they come for you!
Look, we understand the temptation to hope this will all go away. But Congress made sure that won’t happen by giving prosecutors 10 full years to hunt you down. Your looking at potentially 6 more years of living in fear, watching the government’s investigation technology get better, seeing more people get arrested, wondering when your turn comes.
The statute of limitations isn’t your friend – its a ticking time bomb. Every day you wait, evidence accumulates, witnesses flip, and your options shrink. The government has until 2030 or 2031 to prosecute most PPP fraud cases, and they’re planning to use every single day. Don’t spend the next 6 years living in terror. Don’t wait until its too late and your in handcuffs wishing you’d acted sooner.
We can help you now while you still have options. Voluntary disclosure, cooperation, negotiated resolutions – these are possible NOW but won’t be possible when they catch you in year 9. The 10-year statute of limitations isn’t protection – its a guarantee they’ll eventually get you. Call us immediately and let us help you resolve this while you still have some control over your fate!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS