PPP Fraud in Florida

The Paycheck Protection Program (PPP) was an essential lifeline for Florida businesses navigating the uncertainty of the pandemic. However, the federal government has since launched a sweeping effort to investigate how those funds were used, and Florida is a key focus area. For business owners across the state, a past PPP loan application can suddenly become the subject of a serious federal investigation, carrying severe consequences even for unintentional errors.

What Constitutes PPP Fraud?

Federal investigators are looking for specific red flags that indicate potential fraud. While every case is unique, the most common reasons a business owner may find themselves under investigation include:

• False Application Statements: Misrepresenting payroll expenses, the number of employees, or overall eligibility to secure a loan you otherwise would not have received.
• “Stacking” Loans: Illegally applying for multiple PPP loans from different lenders for the same business, claiming the same payroll expenses more than once.
• Improper Use of Funds: Using the loan for unauthorized purposes, such as luxury personal purchases, real estate investments, or vehicles, rather than approved business costs like payroll, rent, and utilities.
• Fraudulent Forgiveness Certification: Submitting false documentation or inflated payroll numbers when applying to have the PPP loan forgiven.

The SBA has outlined extensive guidance on preventing fraud and identity theft throughout the PPP process.

Florida Case Examples

Prosecutions in South Florida highlight the serious consequences of PPP fraud:

• Four South Florida Residents Charged with PPP and Mortgage Fraud were indicted in March 2024 for causing lenders to disburse approximately $1.3 million based on forged IRS forms and falsified payroll records.
• In April 2025, a Miami man was sentenced to 15 Years in Prison for leading a fraud Scheme, demonstrating that Florida residents face maximum federal penalties.

The Severe Penalties for a Conviction

A federal PPP fraud investigation can lead to charges including wire fraud, bank fraud, and making false statements to a financial institution. These are federal offenses with substantial penalties:

• Up to 30 years in federal prison
• Fines of up to $1 million
• Forfeiture of any assets purchased with the fraudulent funds
• Permanent damage to one’s professional and personal reputation

You Are Being Investigated. What Happens Now?

A federal investigation is a serious process. You may be contacted by federal agents, receive a target letter from the U.S. Attorney’s Office, or even be arrested without warning. The most critical mistake is speaking to investigators without an experienced defense attorney present. Any statement you make can and will be used to build a case against you.

How Shrader Mendez & O’Connell Can Help

At Shrader Mendez & O’Connell, we have extensive experience defending clients against federal charges, including PPP fraud allegations. We will thoroughly examine the government’s evidence, protect your constitutional rights, and work to resolve the matter as early as possible, whether the situation involves an honest mistake or complex allegations.

Contact Us for a Confidential Consultation

You do not have to face a federal investigation alone. Contact Shrader Mendez & O’Connell at 813-360-1529 or contact us for a free, confidential consultation to understand your rights and legal options.