Written by David Boyer, Partner. Last updated August 11, 2026.

PPP Loan Fraud Defense in Dallas and Plano

On This Page

• Federal PPP Loan Fraud Exposure for Plano and Dallas-Area Borrowers
• How PPP Loan Fraud Is Investigated and Charged in the Northern and Eastern Districts of Texas
• Federal Charges and Statutes Used in PPP Loan Fraud Prosecutions
• What to Do if You Receive an SBA OIG Letter, Subpoena, or Federal Target Letter
• What Makes Evergreen Attorneys Different
• How Evergreen Attorneys Defends PPP Loan Fraud Cases
• Frequently Asked Questions

Business owners in Plano and the greater Dallas-Fort Worth metroplex who received Paycheck Protection Program loans during the pandemic are now facing a second wave of federal scrutiny. The SBA Office of Inspector General has estimated that more than $200 billion in potentially fraudulent COVID-19 EIDL and PPP loans were disbursed, and hundreds of investigations remain active. The stakes are severe: wire fraud alone carries a maximum sentence of 20 years in federal prison, and Congress extended the statute of limitations for PPP-related fraud to 10 years, meaning enforcement activity will continue well into the next decade.

If federal agents have contacted you or you have received a federal document, contact Evergreen Attorneys at (214) 666-6558 before responding or producing information.

Federal PPP Loan Fraud Exposure for Plano and Dallas-Area Borrowers

PPP loan fraud involves making false statements or misrepresentations to obtain, inflate, or misuse Paycheck Protection Program funds. Common allegations include overstating payroll figures on the loan application, fabricating employee records, using PPP proceeds for unauthorized personal expenses, and submitting false forgiveness certifications.

Although Plano and Dallas are close in proximity, each sits in a different U.S. Federal Court jurisdiction. Cases arising in Dallas-Fort Worth are brought in the United States District Court for the Northern District of Texas. Whereas Plano cases are filed in the Eastern District of Texas. This means that cases in Plano will have different courts, rules, judges, and prosecutors than cases in the DFW area. The U.S. Attorney’s Office works alongside the SBA OIG the FBI, the IRS Criminal Investigation Division, and the Department of Justice to identify and prosecute suspected PPP loan fraud defense cases. SBA OIG reporting documents over 1,000 PPP and EIDL-related indictments, arrests, and convictions nationwide, and the agency had 536 ongoing investigations as of January 2023 according to GAO Report 23-105331.

For Dallas or Plano borrowers, the practical effect is straightforward: any PPP loan that triggered a hold code, generated a hotline complaint, defaulted, or was never submitted for forgiveness may already be under review. Because multiple federal agencies share data and coordinate enforcement, an initial SBA OIG inquiry can quickly become a criminal referral to the U.S. Attorney’s Office.

How PPP Loan Fraud Is Investigated and Charged in the Northern and Eastern Districts of Texas

Federal PPP loan fraud investigations in the Northern and Eastern Districts of Texas typically begin with one of several triggers. SBA OIG uses data analytics to flag applications that share phone numbers, bank accounts, email addresses, IP addresses, or physical addresses with other suspicious applications. Lender hold codes, loan defaults, and tips submitted through the SBA OIG hotline also generate investigative referrals.

Once SBA OIG identifies a potential case, it may coordinate with DOJ, the FBI, and IRS Criminal Investigation. The investigation can involve subpoenas for bank records, tax returns, payroll documents, and business formation records. Investigators may also conduct interviews with employees, vendors, and the borrower. If the evidence supports criminal charges, the case is referred to an Assistant United States Attorney in the Dallas Division of the Northern District of Texas, or the Plano Division of the Eastern District of Texas, who may present the case to a federal grand jury.

Because the statute of limitations for PPP and COVID-19 EIDL-related fraud has been extended to 10 years, Plano and Dallas business owners can face new investigative activity for loans that were funded in 2020 or 2021 well into 2030 or 2031. Document retention and the ability to explain how funds were used remain critical years after disbursement.

Federal Charges and Statutes Used in PPP Loan Fraud Prosecutions

Federal prosecutors in the Texas rely on several statutes when charging PPP loan fraud. Understanding these charges helps borrowers evaluate their exposure and respond effectively.

• Wire fraud (18 U.S.C. § 1343): Charged when electronic communications, including online loan applications, emails, or electronic fund transfers, are used in the scheme. Carries a maximum sentence of 20 years in federal prison.
• Bank fraud (18 U.S.C. § 1344): Applies when the borrower’s application misrepresents information to a federally insured financial institution. Maximum penalty is 30 years.
• False statements (18 U.S.C. § 1001): Used when borrowers make materially false statements to SBA, lenders, or federal investigators concerning PPP eligibility or use of funds. Maximum penalty is five years.
• Conspiracy (18 U.S.C. § 371): Charged when two or more individuals agree to commit fraud. Maximum penalty is five years, though it is frequently combined with substantive fraud counts carrying longer sentences.
• Money laundering (18 U.S.C. § 1957): Applied when PPP proceeds are used to purchase assets, make transfers, or conduct financial transactions designed to conceal their origin. Maximum penalty is 10 years.

Many PPP loan fraud indictments in the Northern and Eastern Districts of Texas combine multiple statutes in a single case, which increases the defendant’s sentencing exposure and the complexity of the defense.

What to Do if You Receive an SBA OIG Letter, Subpoena, or Federal Target Letter

Receiving correspondence from SBA OIG, a federal grand jury subpoena, or a federal target letter requires an immediate, disciplined response. Follow these steps.

1. Do not respond to the letter or subpoena, produce documents, or contact investigators until you have consulted with a federal defense attorney.
2. Preserve all documents related to your PPP loan application, payroll records, bank statements, tax filings, forgiveness submissions, and communications with your lender or loan preparer.
3. Do not discuss the matter with business partners, employees, or third parties who may themselves become witnesses or subjects.
4. Engage federal defense counsel who understands how SBA OIG and the U.S. Attorney’s Office for the Northern and Eastern Districts of Texas handle PPP loan fraud cases.

Timely legal representation is critical because statements made to federal agents, even informal ones, can form the basis of additional charges under 18 U.S.C. § 1001 for false statements to federal agents. An experienced attorney can evaluate the nature and scope of the inquiry, negotiate the scope of document production, and protect your constitutional rights throughout the process.

The distinction between a target, a subject, and a witness in a federal investigation determines your legal exposure. Understanding these categories is critical to choosing the right response. If you have received a federal grand jury subpoena, you should treat the matter as urgent.

What Makes Evergreen Attorneys Different?

Evergreen Attorneys won 9-0 in the U.S. Supreme Court in United States v. Hemani in June 2026, demonstrating the experience necessary for effective litigation counsel.

• We exclusively focus on federal criminal defense and serious crimes.
• We only employ partner-level attorneys
• We have a strong focus on federal appeals and post-conviction relief.

Evergreen Attorneys is a federal criminal defense boutique that represents business owners, professionals, and individuals facing federal investigations and prosecutions across the country, including in DFW and Plano areas. The firm provides only partner-level representation, meaning every PPP loan fraud matter is handled directly by a senior attorney with focused federal criminal defense experience.

Evergreen Attorneys maintains a Plano, Texas office at 5465 Legacy Drive, Suite 650, available by appointment. David Boyer, Partner, regularly handles high stakes cases in Dallas and Plano area. The firm’s practice focuses federal fraud crimes defense, and its attorneys understand the procedural landscape of the Northern and Eastern Districts of Texas, the local U.S. Attorney’s Office, and the federal agencies that investigate PPP loan fraud.

How Evergreen Attorneys Defends PPP Loan Fraud Cases

Evergreen Attorneys approaches PPP loan fraud defense by evaluating every element of the government’s theory before the case reaches a courtroom.

During the investigation stage, the firm reviews all SBA OIG correspondence, subpoenas, and agency communications. Attorneys assess whether the government’s fraud indicators, such as shared addresses, default status, or forgiveness application gaps, actually reflect intentional misrepresentation or instead result from legitimate business circumstances, third-party preparer errors, or ambiguous program guidance.

If the government files charges, the firm conducts a detailed analysis of the indictment’s factual allegations, identifies weaknesses in the government’s evidence, and develops a defense strategy tailored to the specific statutes charged. This includes challenging the government’s proof of intent, questioning the reliability of data-matching algorithms, and examining whether alleged misstatements were material.

Throughout the process, Evergreen Attorneys coordinates responses across multiple federal agencies, handles document production, prepares clients for potential grand jury proceedings, and negotiates with the U.S. Attorney’s Office when resolution short of trial may serve the client’s interests.

Frequently Asked Questions

Which federal agencies investigate PPP loan fraud in the Plano and Dallas area?

Several federal agencies investigate PPP loan fraud affecting Plano and the broader Dallas metroplex. The SBA Office of Inspector General leads compliance investigations and identifies potentially fraudulent loans through data analytics and hotline referrals. SBA OIG coordinates with the Department of Justice, the Federal Bureau of Investigation, and the IRS Criminal Investigation Division. When the evidence supports criminal charges, cases are referred to the U.S. Attorney’s Office for the Northern District of Texas for Dallas, and the Eastern District of Texas for Plano. Because these agencies share information and resources, a routine SBA OIG inquiry can escalate into a full criminal investigation without additional notice to the borrower.

How long can the government prosecute PPP loan fraud for Texas borrowers?

Congress extended the statute of limitations for PPP and COVID-19 EIDL-related fraud to 10 years. For loans funded in 2020 or 2021, this means federal prosecutors can bring charges through approximately 2030 or 2031. According to SBA OIG and GAO reporting, hundreds of investigations remain open, and new cases continue to be initiated. Plano business owners should maintain complete records of their PPP loan applications, payroll documentation, and forgiveness submissions, as these records may be requested or subpoenaed years after the loan was disbursed.

What indicators commonly trigger an SBA OIG investigation of a PPP loan?

SBA OIG reporting identifies several indicators that can trigger an investigation: hold codes placed on loans by SBA or lenders, hotline complaints, loan defaults, and failure to apply for forgiveness when the borrower appeared eligible. Investigators also use data analytics to compare shared phone numbers, bank accounts, email addresses, physical addresses, and IP addresses across multiple applications. Any of these flags can cause a borrower’s PPP loan to be referred for criminal investigation by the U.S. Attorney’s Office.

When should a Plano business owner facing PPP loan scrutiny retain federal defense counsel?

The best time to engage federal defense counsel is immediately upon receiving any federal communication about your PPP loan, whether it is an SBA OIG inquiry letter, a document request, a grand jury subpoena, or a target letter. Early involvement allows counsel to control the flow of information to investigators, prevent inadvertent admissions that could support additional charges under 18 U.S.C. § 1001, and develop a comprehensive defense strategy before the government’s case takes shape. Waiting until charges are filed significantly narrows your available options.

If you are facing a PPP loan fraud investigation or federal charges in Dallas or Plano, speak with the federal defense team at Evergreen Attorneys at (214) 666-6558 to discuss your situation and protect your rights.