The PPP Prosecution Machine Has Arrived in New York
If you’re reading this, you’ve gotten a phone call you never expected. Maybe your accountant just told you the FBI asked about your 2020 PPP application. Maybe two agents showed up at your restaurant, asking about employee counts. Maybe you received a letter from the U.S. Attorney’s Office for the Southern District of New York.
This is reality for thousands of small business owners, entrepreneurs, and professionals across New York City. The federal government’s COVID fraud machine is now operating at full speed.
If you think this is just a paperwork issue, you’re already behind. You are not dealing with a civil audit. You are facing a multi-agency federal criminal investigation built to win.
The DOJ’s COVID Fraud Task Force: 20 Agencies, One Target – You
In May 2021, the Department of Justice launched the COVID-19 Fraud Enforcement Task Force, combining the resources of more than 20 federal agencies: FBI, IRS Criminal Investigation, SBA OIG, U.S. Secret Service, HSI, and more.
The results are staggering:
- More than 3,500 defendants charged nationally
- Over $1.4 billion in stolen COVID relief funds seized or forfeited
- More than 400 civil lawsuits filed
- SBA OIG statistics: 1,200+ indictments, 700+ convictions from PPP/EIDL fraud alone
Real New York PPP Fraud Sentences
- Baltej Singh Brar (Richmond Hill, Queens): 2 years federal prison
- Tommy Hawkins (Bank Branch Manager): 65 months (over 5 years) prison for coordinating 38 fraudulent PPP loans totaling $5 million
- Niall Alli (Long Island): 48 months prison for $1.7 million PPP fraud
The SDNY/EDNY Prosecution Machine
- Southern District of New York (SDNY): Manhattan, Bronx, Westchester. 88% indictment rate. 98% conviction rate.
- Eastern District of New York (EDNY): Brooklyn, Queens, Staten Island, Long Island. Aggressive COVID fraud enforcement.
Once they decide to indict, conviction is almost guaranteed. Your leverage is pre-indictment.
What to Do if Contacted by Federal Agents
- Say nothing. Politely invoke your right to counsel.
- Call an experienced federal defense attorney immediately
- Gather all PPP/EIDL documentation
- Do NOT discuss the case with anyone except your attorney
At Spodek Law Group, our team includes former DOJ prosecutors and federal agents on staff. We handle cases across all federal districts. Contact us immediately if you are under investigation.
Written By
Todd Spodek
Todd Spodek is the Managing Partner of Spodek Law Group P.C. He is a second-generation trial attorney who has been recognized as one of the Top 100 Trial Lawyers in the country. He has represented clients in some of the highest-profile federal criminal cases in the Eastern District of Pennsylvania and beyond.
