PPP and SBA Loan Fraud Defense in Miami

If an agent has called you, your bank has asked questions about a PPP loan, or you received a target letter or subpoena, talk to a lawyer before you talk to anyone else.

Dennis Gonzalez Jr. is a former Miami-Dade prosecutor who has been defending people since 2012, in state court and in federal court in the Southern District of Florida. Our office answers 24 hours a day.

This page is part of our Economic Crimes Defense practice.

The Federal Charges in PPP and SBA Loan Cases

False statements on a loan application. It is a federal crime to knowingly make a false statement or report to influence the action of a bank whose accounts are insured by the FDIC, a federal or insured state-chartered credit union, or other lenders listed in the statute, on a loan or application. The penalty is up to 30 years in prison and a fine of up to $1,000,000.

Bank fraud. Knowingly carrying out, or trying to carry out, a scheme to defraud a financial institution, or to get money or property it holds by false or fraudulent pretenses, carries up to 30 years and a fine of up to $1,000,000.

Wire fraud. Using wire communications in interstate or foreign commerce, like emails, online applications, and electronic transfers, to carry out a scheme to defraud or to get money by false pretenses carries up to 20 years. If the violation affects a financial institution, the maximum is 30 years and a fine of up to $1,000,000.

Conspiracy and attempt. A person who attempts or conspires to commit wire fraud or bank fraud faces the same penalties as the crime itself. Preparers, "consultants," and people who referred others to them can be charged this way.

Money laundering. When loan money is moved or spent in certain ways, laundering charges may be added. Federal law makes it a separate crime to knowingly engage in a monetary transaction of more than $10,000 in criminally derived property that came from certain listed crimes. See Money Laundering.

The 10-Year Statute of Limitations

Most federal crimes that are not capital must be charged within five years after the offense. PPP and COVID-era EIDL fraud are different:

• For PPP loans (both first-draw and second-draw loans), federal law says any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to a covered loan must be filed not later than 10 years after the offense was committed.
• Federal law sets the same 10-year limit for borrower fraud involving COVID-19 disaster loans (EIDL) made during the covered period, and for borrower fraud in the use of an emergency EIDL advance.
• Separately, bank fraud, false statements to a federally insured bank or credit union, and wire fraud that affects a financial institution carry a 10-year limit too.

In plain terms: a PPP application from 2020 or 2021 can still be charged years from now. Waiting it out is not a plan.

Common Issues in PPP and EIDL Cases

• Payroll and employee counts that don't match tax filings or bank records.
• Business existence or operations at the time of the application.
• How the money was spent after it arrived.
• Forgiveness applications and the certifications made in them.
• Who prepared the application. Many people relied on an accountant, preparer, or "loan consultant." What you knew and what you signed are central questions.

Target Letters, Agent Visits, and Search Warrants

If federal agents contact you or come to your home or business:

1. Be polite. Get their names, agency, and phone numbers.
2. Do not answer questions about the loan without a lawyer. Say your lawyer will contact them.
3. If they have a search warrant, do not resist or block them. Ask for a copy and do not answer questions.
4. Do not delete, change, or "fix" records, bank statements, payroll files, texts, or emails.
5. Do not call the preparer, consultant, or others involved to compare stories.
6. Do not move money around in response to the investigation without legal advice.
7. Call us. (305) 209-0384.

Why early counsel matters. Before charges, a lawyer can learn whether you are seen as a witness, subject, or target; gather the records that show legitimate business use or good-faith reliance on a preparer; and handle contact with agents and prosecutors. Repayment and cooperation decisions should only be made with counsel. If charges are coming, we can often arrange a self-surrender and plan ahead for bond and source-of-funds questions.

Why Choose Dennis Gonzalez Law, P.A.

• Former Miami-Dade prosecutor.
• Defending people since 2012.
• Super Lawyers recognition and an Avvo Rating of 10.0.
• Bilingual office — se habla español.
• We answer 24 hours a day. Call (305) 209-0384.

You can read about some of our past cases on our Results page.

Frequently Asked Questions

My PPP loan was forgiven. Can I still be charged?

Forgiveness does not, by itself, end the risk. The government can still investigate whether the application or the forgiveness request contained false statements.

It has been more than five years. Am I safe?

Not necessarily. Federal law sets a 10-year limit for charges alleging borrower fraud on PPP loans and COVID-era EIDL loans and advances, and for bank fraud and other offenses that affect a financial institution.

An accountant or consultant filled out my application. Am I responsible?

It depends on what you knew and what you signed. Good-faith reliance on a preparer can be an important part of the defense. A lawyer needs to review the records.

Should I pay the loan back now?

Repayment can matter, but it should be done through your lawyer, as part of a strategy, so it is handled in a way that protects you.

How fast can you help?

Our office answers 24 hours a day. Call (305) 209-0384.