PPP Loan Fraud Charges in Miami

A Former Prosecutor’s Perspective on Federal PPP Allegations

Allegations involving Paycheck Protection Program loans can lead to several federal charges, including wire fraud and related financial crimes. At Law Office of Armando J. Hernandez, P.A., we defend clients against federal crimes and bring a former prosecutor’s perspective to complex financial allegations.

Attorney Armando J. Hernandez has more than 20 years of legal experience in Florida criminal law. As a boutique criminal law firm, we dedicate our efforts, resources, and time to each client facing a federal investigation.

If you’ve received a subpoena, target letter, or interview request, call (305) 400-0074 before responding to federal authorities.

Federal Charges Connected to PPP Loan Fraud

There’s no single federal statute covering every form of alleged PPP loan fraud. Prosecutors select charges based on the representations, communications, and transactions involved in the alleged conduct.

Common charges in these cases include:

• Wire fraud (18 U.S.C. § 1343): Using interstate wire communications, such as electronic applications or transfers, to further an alleged scheme to defraud.
• Bank fraud (18 U.S.C. § 1344): Engaging in a scheme to defraud a financial institution or obtain its money through false representations.
• False statements (18 U.S.C. § 1014): Knowingly making a false statement to influence a covered financial institution.
• Federal conspiracy (18 U.S.C. § 371 or § 1349): Agreeing with another person to commit a federal offense. The applicable statute depends on the alleged underlying crime.
• Money laundering: Conducting financial transactions involving proceeds that prosecutors allege came from criminal activity.

Each charge has elements the government must prove. The defense strategy depends on the records, alleged participants, and stage of the case.

How PPP Fraud Investigations Begin in Miami

Federal investigations often begin before an arrest through grand jury subpoenas, target letters, or interviews requested by agents. A target letter generally indicates that prosecutors consider someone a target of an investigation, while a subpoena may compel testimony or require specified records.

Investigators can compare PPP loan applications with tax filings, payroll records, and bank-account activity. The U.S. Attorney’s Office for the Southern District of Florida has brought PPP and CARES Act fraud cases involving South Florida defendants, including allegations concerning tax preparers and loan applications. Anyone who receives an official request should seek legal advice before speaking with investigators or producing records because deadlines and response obligations may apply.

Potential Prison Time & Financial Consequences

A conviction can carry imprisonment and substantial financial consequences. Sentencing exposure varies with the charges, evidence, alleged conduct, criminal history, and federal sentencing rules.

Potential consequences may include:

• Wire fraud penalties: 18 U.S.C. § 1343 provides for up to 20 years in federal prison, or up to 30 years if the offense affects a financial institution.
• Bank fraud penalties: 18 U.S.C. § 1344 provides for up to 30 years in federal prison and a fine of up to $1 million.
• Restitution and forfeiture: Repayment of alleged losses and forfeiture of assets prosecutors claim were purchased with fraudulently obtained PPP proceeds.

These are statutory maximums, not predictions of the sentence a person may receive. If there’s a conviction, the sentence depends on the applicable statutes and a case-specific federal sentencing analysis.

The 10-Year Limitations Period for PPP Fraud

The PPP and Bank Fraud Enforcement Harmonization Act of 2022 established a 10-year statute of limitations for criminal charges and civil enforcement involving alleged fraud by a borrower with respect to a PPP loan. Applications and transactions from years earlier can therefore remain subject to investigation.

Calculating the limitations period requires examining the specific alleged conduct and charges. The loan application date alone doesn’t necessarily determine whether a prosecution is timely.

Federal Defense in the Southern District of Florida

PPP-related prosecutions involving Miami residents proceed in the Southern District of Florida, with Miami proceedings associated with the Wilkie D. Ferguson Jr. United States Courthouse. We assess each matter at its current stage to identify federal procedures and deadlines requiring immediate attention.

Our federal criminal defense process may involve:

• Pre-indictment intervention: Contacting the U.S. Attorney and presenting information before prosecutors make a charging decision.
• Proffer negotiations: Discussing a structured meeting in which information is provided to prosecutors under agreed terms.
• Charging discussions: Seeking to persuade prosecutors not to file charges or pursue an offense carrying a mandatory minimum sentence.
• Indictment and release proceedings: Addressing a grand jury indictment and preparing for bail or detention hearings.
• Discovery and motions: Reviewing the government’s evidence and litigating appropriate pretrial issues.
• Trial and appeal: Preparing for trial and, when applicable, pursuing an appeal through the Eleventh Circuit Court of Appeals.

Not every case moves through each stage. Early legal review can identify immediate deadlines, clarify the allegations, and determine available response options before records are produced or an interview occurs.

We maintain constant communication with clients throughout their cases, including updates on the government’s evidence, pending decisions, and next steps.

Discuss a Federal PPP Investigation Promptly

We offer a free initial case review or consultation, Spanish-language service, and 24/7 availability. Our contact form provides another way to send an initial inquiry about the allegations and any immediate deadlines.

Call (305) 400-0074 to discuss your federal criminal matter with our defense firm serving Miami.