Florida PPP Loan Fraud Defense Attorney

July 11, 2025

Accused of Paycheck Protection Program (PPP) Loan Fraud in Florida? We Fight for Your Rights, Your Future, and Your Freedom!

If you’ve been contacted by federal agents, received a target letter, or been indicted in connection with a Paycheck Protection Program (PPP) loan, you need to take the matter seriously. Allegations of PPP loan fraud are often prosecuted under federal law, but they frequently involve investigations and proceedings here in Florida. As a criminal defense attorney practicing in Florida for years, I’ve seen how these cases can impact someone’s freedom, finances, and future. If you’re facing PPP loan fraud charges, the time to secure private legal counsel is now.

Why PPP Loan Fraud Is Being Prosecuted Aggressively

The federal government allocated over $800 billion through the PPP under the CARES Act to help small businesses survive the COVID-19 pandemic. With that amount of money flowing fast, the government later turned its attention to investigating fraud. This led to a surge in prosecutions.

The Department of Justice (DOJ), working with agencies like the IRS, SBA, and FBI, began reviewing PPP loan applications for signs of fraud, false statements about number of employees, inflated payroll costs, fake businesses, or misuse of loan proceeds. Many people didn’t realize they were under investigation until it was too late.

A key reason to hire a private attorney in these cases is because investigations are usually quiet until charges are filed. By then, the government has already built its case. A court-appointed lawyer often doesn’t have the time or resources to dig into complex financial records. As your private attorney, I can begin examining every document, every bank record, and every piece of evidence immediately.

Federal Statutes Used to Charge PPP Loan Fraud

Most PPP loan fraud cases in Florida are prosecuted under federal law. The most common charges include:

18 U.S.C. § 1343 – Wire Fraud

This statute criminalizes the use of wire communications, like the internet or phone, to carry out a fraudulent scheme. Since PPP loan applications were submitted online, the government often alleges wire fraud.

Statute Text: “Whoever, having devised or intending to devise any scheme or artifice to defraud… transmits by means of wire, radio, or television communication… shall be fined or imprisoned not more than 20 years.”

If the alleged fraud affects a financial institution, the maximum penalty increases to 30 years.

18 U.S.C. § 1001 – False Statements

Many cases include charges under § 1001 for making materially false statements on PPP loan applications.

Statute Text: “Whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully… makes any materially false, fictitious, or fraudulent statement or representation… shall be fined or imprisoned not more than 5 years.”

Even an honest mistake can lead to serious charges. A private lawyer can evaluate whether the statements were actually material, whether they were knowingly false, and whether the application was even submitted by you personally.

18 U.S.C. § 1344 – Bank Fraud

This charge applies when someone defrauds a financial institution, which includes SBA-backed lenders.

Statute Text: “Whoever knowingly executes, or attempts to execute, a scheme… to defraud a financial institution… shall be fined not more than $1,000,000 or imprisoned not more than 30 years.”

Florida Charges That May Apply Alongside Federal Crimes

Though most PPP fraud cases are federal, they may also lead to charges under Florida law, especially if state agencies or financial institutions are involved. Florida’s laws on theft, forgery, or conspiracy can come into play.

Florida Statute § 817.034 – Florida Communications Fraud Act

This law criminalizes schemes to defraud using communication, similar to federal wire fraud.

Statute Text: “Any person who engages in a scheme to defraud and obtains property thereby is guilty of theft and may be charged accordingly.”

Penalties vary based on the amount of money involved.

Private counsel can evaluate how both federal and state prosecutors are approaching your case, and coordinate a unified defense strategy.

Real Case Example: Client Facing 20 Years Walks Away With No Jail Time

One of our clients was charged in the Middle District of Florida with submitting a false PPP loan application for a business he ran out of his home. The SBA loan was for over $250,000. The government alleged he inflated payroll costs and used the funds to purchase a luxury vehicle. He was indicted on five counts, including wire fraud and bank fraud, with potential penalties totaling over 60 years in prison.

Our defense began before trial. We brought in a forensic accountant to review his bank statements, contractor agreements, and payroll ledgers. We discovered that much of the spending was legitimate, subcontractors were paid in cash, and the vehicle was used to service commercial accounts.

We challenged the prosecution’s use of broad assumptions, highlighted flaws in their witness testimony, and demonstrated that the application wasn’t materially false. Ultimately, the government agreed to drop three charges, and the client received probation on the remaining counts with no incarceration and no restitution.

This outcome would not have been possible without immediate and aggressive intervention. It’s an example of how hiring a private attorney early can make all the difference.

Defenses to PPP Loan Fraud Charges

Every case is different, but we’ve successfully used the following defenses in PPP loan fraud prosecutions:

Lack of Intent

The government must prove that you knowingly made false statements. If you misunderstood how to calculate payroll or relied on an accountant, this may show lack of criminal intent.

Mistaken Identity

In some cases, third parties submitted fraudulent applications using someone else’s business or identity. If your name was attached to an application you didn’t submit, we pursue digital forensic evidence and trace IP addresses to prove it.

Business Necessity

Not all purchases that seem unusual are fraudulent. If you can prove that funds were used for legitimate business expenses, even unconventional ones, you may avoid conviction.

Overreach by Investigators

We’ve seen cases where investigators pressured witnesses, misinterpreted financial documents, or failed to consider exculpatory evidence. We attack the investigation itself to suppress unlawfully obtained evidence.

These defenses are fact-intensive. A public defender may not have time to hire forensic experts or track down supporting witnesses. As a private defense attorney, I build each case from the ground up.

Why You Need a Private Criminal Defense Attorney

PPP fraud allegations are document-heavy. These cases require a deep dive into your bank records, tax filings, payroll documents, and communications with lenders or CPAs. The government often has a head start; they’ve had months to build their case before you’re ever contacted.

That’s why hiring a private criminal defense attorney is critical. At Musca Law, we know how federal prosecutors think. We understand how SBA investigations unfold. We’ve defended clients across Florida, from Miami and Tampa to Jacksonville and Pensacola, against both federal and state charges. And we do it with urgency and discretion.

Contact Musca Law 24/7/365 at 1-888-484-5057 For Your FREE Consultation

Musca Law, P.A. has a team of experienced criminal defense attorneys dedicated to defending people charged with a criminal or traffic offense. We are available 24/7/365 at 1-888-484-5057 for your FREE consultation. We have 30 office locations in Florida and serve all counties in Florida.

PPP Loand Fraud Frequently Asked Questions (FAQs)

What is PPP loan fraud?

PPP loan fraud involves making false statements or misrepresentations when applying for a Paycheck Protection Program loan or misusing the funds after receiving them. This can include inflating employee numbers, using the money for personal purchases, or claiming a fake business. The fraud can be prosecuted under federal statutes such as wire fraud, bank fraud, or false statements to the government.

Can I be charged even if I didn’t personally submit the application?

Yes. If your name is associated with the business or bank account involved, you could be charged as a participant or co-conspirator, even if someone else submitted the application. That’s why we investigate digital records, emails, and account access logs to determine whether you had actual involvement.

What happens after I receive a federal target letter?

A target letter means the government believes you committed a crime and intends to prosecute. It is often the final warning before indictment. You should contact a criminal defense attorney immediately to avoid saying or doing anything that could harm your case. We’ve stopped indictments before they were filed by engaging prosecutors early with exculpatory evidence.

Is it illegal to spend PPP funds on a vehicle or rent?

It depends. PPP funds were meant for payroll and certain approved business expenses. However, if the vehicle was used exclusively for business, or the rent was for office space, those uses may be allowed. We examine how the funds were used in your case and work with financial experts to demonstrate lawful business use.

What’s the penalty for PPP loan fraud in Florida?

Under federal law, a wire fraud conviction can carry up to 20 years, and bank fraud can result in up to 30 years per count. Sentences are influenced by the amount of money involved and whether you have a prior record. In Florida state court, fraud-related theft charges can also lead to years in prison. We work to reduce or dismiss these charges entirely.

How do federal prosecutors prove fraud?

They rely on application data, bank records, emails, text messages, and witness testimony. They also use SBA audit reports and cooperate with other agencies to build a paper trail. We fight these claims by identifying innocent explanations and showing that no fraudulent intent existed.

I got a PPP loan but didn’t use all the money. Am I still at risk?

Possibly. If the government believes you misrepresented anything on your application or misused even a portion of the funds, they may investigate. But unused funds can also support a defense that you didn’t intend to defraud or took the loan in good faith.

Can a private attorney really help if the case seems overwhelming?

Absolutely. We’ve had cases dismissed, charges reduced, and clients avoid prison entirely. Private attorneys have the time and resources to dig deeper, retain experts, and present a full defense. We’ve succeeded in PPP loan fraud cases even when it seemed like the government had an airtight case.

Can I be prosecuted if I’ve already repaid the loan?

Yes. Repayment doesn’t automatically stop a prosecution, but it can be used as a mitigating factor in plea negotiations or sentencing. It also shows good faith, which can be persuasive in court. We can present this as part of a larger defense strategy.

Should I talk to investigators or agents without a lawyer?

No. Anything you say can and will be used against you. Even if you believe you did nothing wrong, speaking without legal counsel can seriously damage your case. Let us handle all communication with investigators to protect your rights from the start.