Wilmington EIDL Loan Fraud Lawyers

Wilmington EIDL Loan Fraud Lawyers

Department of Justice data from December 2024 shows 81% of pandemic fraud defendants received prison time. YOUR $135,000 controls YOUR sentence. District of Delaware federal court determines YOUR outcome. This isn’t theory – this is YOUR situation facing YOU right now.

YOUR Wilmington retail business applied for Economic Injury Disaster Loan in 2020. YOUR revenue calculations: YOU listed $250,000 on the application. YOUR 2019 tax return: documented $120,000. That $130,000 gap is what FBI Baltimore and SBA Office of Inspector General now investigate. Thanks for visiting Spodek Law Group – Todd Spodek’s firm has handled over 2,000 federal cases, including defending clients in many, many pandemic fraud prosecutions throughout District of Delaware. Former federal prosecutors on Spodek’s team understand exactly how District of Delaware prosecutors build EIDL fraud cases against defendants. As a second-generation criminal defense attorney who represented Anna Delvey in the high-profile fraud case that became a Netflix series, Todd Spodek understands complex federal fraud defense and what constitutional protections apply to YOUR situation.

The question: when did YOUR revenue estimate become federal fraud?

When Estimates Become Crimes

YOUR 2019 tax return documented $120,000 revenue for YOUR Wilmington retail business. YOU filed Schedule C with IRS showing this amount. When pandemic hit in March 2020, YOU applied for EIDL. The application required 2019 gross revenue. YOU calculated $250,000. YOUR reasoning seemed defensible at the time. Tax returns capture net figures after deductions. Gross revenue includes amounts before expenses. YOUR business had strong sales periods in 2019 that bank deposits reflected. YOU estimated what full-year operations would have generated without seasonal variations. Wilmington retail businesses face unique challenges – corporate workers who support YOUR customer base, fluctuating foot traffic, economic cycles tied to Delaware’s business formation industry. YOU believed YOUR estimate reflected business potential. SBA approved YOUR loan within days. YOU received $125,000 EIDL loan plus $10,000 advance. Total: $135,000. This calculation decision creates federal criminal exposure for YOU. If YOUR EIDL application contained false revenue figures when YOU submitted it, those statements constitute wire fraud under 18 USC Section 1343 and false statements to SBA under 18 USC Section 1014. Federal prosecutors in District of Delaware must prove criminal intent – that YOU knew YOUR revenue claim exceeded what business records could support. The constitutional burden requires proof beyond reasonable doubt that YOU intended to defraud SBA. That burden protects YOU, but the gap between YOUR $120K tax return and YOUR $250K application becomes evidence prosecutors use against YOU. District of Delaware federal court follows sentencing Guidelines that calculate prison time based on fraud loss. YOUR $135,000 controls whether YOU face probation or prison.

What did YOU know when YOU submitted? Did YOU understand the difference between estimate and fabrication? YOUR accountant’s role in YOUR calculations matters. Pandemic uncertainty versus deliberate misstatement – that distinction determines YOUR criminal liability. This intent requirement creates defense opportunities. Todd Spodek has secured numerous acquittals at trial in federal fraud cases by challenging whether prosecutors can prove defendants knowingly submitted false information versus made reasonable estimates under extraordinary circumstances. The constitutional burden remains on prosecutors – and experienced federal defense counsel know how to hold them to that burden.

The $10K Grant Misconception

SBA program materials called it “grant.” Described as “non-repayable” regardless of loan outcome. YOU believed this $10,000 functioned separately from YOUR loan. Wilmington business owners throughout Delaware operated under this assumption.

District of Delaware prosecutors include $10,000 in YOUR loss calculation. YOUR $125,000 loan plus $10,000 advance equals $135,000 total. This puts YOU at specific sentencing bracket ceiling. Changes YOUR exposure significantly.

Small bracket versus medium bracket boundary. Whether YOU face probation or prison time. SBA’s language doesn’t protect YOU from prosecution.

FBI Baltimore possesses YOUR complete financial documentation. Grand jury subpoenas issued before contacting YOU. YOUR tax returns obtained via IRS summons. YOUR EIDL application pulled from SBA database. YOUR bank records examined.

They have everything before they contact YOU.

Agent calls YOUR business: “verify information.” Sounds administrative to YOU. Designed to obtain YOUR admissions. Without counsel, YOU explain YOUR calculations. Strengthens case against YOU.

These admissions transform YOUR application errors into federal crimes. Demonstrate YOU knew statements were false. Make prosecution burden easier to meet against YOU. This is why responding to FBI interviews without experienced federal defense counsel puts YOU at significant disadvantage. Spodek Law Group’s former federal prosecutors have handled federal fraud investigations for decades and understand the interview tactics agents use to build their cases. Department of Justice statistics show 81% of pandemic fraud defendants received prison time.

Todd Spodek: 212-300-5196.