The charges people usually see
PPP fraud charges are usually brought in federal court. Prosecutors commonly use bank fraud, wire fraud, and false statements to a lender or the Small Business Administration, and sometimes add money laundering when loan proceeds moved between accounts. Investigations are often handled by the SBA's Office of Inspector General, the FBI, IRS investigators, or other federal agents, sometimes long after the loan was funded. Congress lengthened the time available to bring charges for pandemic loan fraud, so the age of the loan is not by itself a defense. Some cases involve a single business; others involve preparers or brokers who filed many applications and the borrowers who used them.
Arranging the first appearance
When charges are filed, a lawyer can often arrange a voluntary surrender rather than an arrest at home or work. The first appearance in federal court addresses release conditions, which may include travel limits, surrender of a passport, or restrictions on handling business funds. Bring your lawyer the loan file, payroll and tax records, bank statements, and anything showing how the money was spent. Prosecutors usually produce discovery after the case begins, and comparing it against your own records often reveals what is truly in dispute. Do not discuss the case with co-defendants, employees, or the preparer who handled the application.
The money side of a PPP case
Charging documents in these cases often include forfeiture allegations, meaning the government seeks property traced to the loan, and some accounts may already be frozen. Restitution and the calculated loss amount are central to how a case is resolved and how a sentence is measured. Whether the funds went to payroll and other permitted expenses, and whether the figures came from you or from someone you relied on, can shape the case in different ways. Early on, we look at the charges, the release terms, the assets affected, and any civil or administrative actions on the loan. Questions about immigration status or professional licenses should come up at the start, before any resolution is weighed.
