Wisconsin PPP and EIDL Loan Fraud Lawyers

Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek – with over 40 years of combined experience defending federal criminal cases nationwide. If you’re facing PPP or EIDL fraud charges in Wisconsin, or you’re under federal investigation, you need to understand how aggressively both U.S. Attorney’s Offices in Wisconsin are pursuing these cases in 2025.

We’re writing this because Wisconsin residents continue getting charged with pandemic fraud years after receiving the loans. Nearly 40 people in Wisconsin have been charged with COVID-19 relief fraud crimes as of early 2024, and federal prosecutors told The Badger Project they’ll continue prosecuting these cases. What you did in 2020 or 2021 can still land you in federal court today.

Wisconsin Federal Prosecutors Continue Filing New Cases

Sharon Johnson got sentenced to three months in prison in June 2024 and ordered to pay $109,733 in restitution. She pleaded guilty to wire fraud and money laundering after receiving $109,773 through fraudulent PPP and EIDL applications. She provided false information about a company she’d incorporated in 2018, fabricating details to qualify for loans she didn’t deserve.

Eric Upchurch was charged with five counts of wire fraud and one count of money laundering in July 2023 after obtaining over $400,000 through false PPP loan applications. He provided false information and concealed material facts to lenders and the SBA. His case demonstrates how prosecutors stack multiple wire fraud counts – one for each fraudulent application or material misrepresentation.

The Western District and Eastern District U.S. Attorney’s Offices in Wisconsin are working with FBI, Secret Service, IRS Criminal Investigation, and the SBA Office of Inspector General to build cases. They’re reviewing applications from years ago, comparing payroll claims against tax records, analyzing bank statements for misuse of funds.

Both PPP and EIDL Fraud Get Prosecuted

Sharon Johnson’s case involved both PPP and EIDL applications. That’s common – defendants often applied for multiple types of pandemic relief, and investigators review all of it. If you lied on a PPP application and an EIDL application, you’ll face charges for both.

EIDL loans were Economic Injury Disaster Loans provided directly by the SBA, with less stringent requirements than PPP loans. Maximum amounts reached $2 million. The loans were supposed to cover working capital and normal operating expenses that couldn’t be met due to the pandemic’s economic impact.

PPP loans focused on payroll costs. Borrowers certified they’d use at least 60% of funds for payroll to qualify for forgiveness. The remaining 40% could cover rent, utilities, and certain other business expenses during the covered period.

Federal prosecutors treat fraud on either program as equally serious. Wire fraud is wire fraud – whether you lied to get a PPP loan or an EIDL loan doesn’t change the criminal statute or the maximum penalty. What matters is the loss amount, which drives your sentencing guideline range.

Wire Fraud and Money Laundering Charges

Sharon Johnson faced wire fraud and money laundering charges. Eric Upchurch got charged with five wire fraud counts and one money laundering count. These are the standard federal charges in PPP fraud cases.

Wire fraud under 18 U.S.C. § 1343 makes it a crime to use electronic communications (emails, online applications, bank transfers) to execute a fraud scheme. Maximum penalty is 20 years in federal prison – or 30 years if the fraud affects a financial institution, which PPP and EIDL fraud always does since it involves banks and SBA-backed loans.

Money laundering under 18 U.S.C. § 1956 applies when you conduct financial transactions involving proceeds of fraud with intent to conceal the source or nature of the funds. If you transferred PPP funds from your business account to personal accounts, used the money to buy assets, or structured transactions to avoid reporting requirements, prosecutors can charge money laundering. Maximum penalty is 20 years.

Prosecutors also use bank fraud (18 U.S.C. § 1344), which carries up to 30 years and fines up to $1 million. Making false statements to the SBA (18 U.S.C. § 1001) adds five years maximum. Theft of government money (18 U.S.C. § 641) adds 10 years when the amount exceeds $1,000.

Multiple counts create leverage. Eric Upchurch faced six federal counts. Even if he goes to trial and wins on some counts, a conviction on even one wire fraud count still means potential decades in prison. Prosecutors use this leverage to push plea deals.

What the Government Has to Prove

For wire fraud, prosecutors must prove you knowingly devised or participated in a scheme to defraud, you used interstate wire communications in furtherance of the scheme, and you acted with intent to defraud. For PPP fraud specifically, that means proving you knowingly made false statements on your loan application or certification documents with intent to obtain funds you weren’t entitled to.

Common false statements – inflating the number of employees, overstating payroll expenses, claiming your business existed longer than it did, certifying you’d use funds for allowable expenses when you intended to use them for personal purposes, failing to disclose other pandemic relief funds received.

The government doesn’t have to prove you succeeded in keeping the money. Attempted fraud is still fraud. If you submitted a fraudulent PPP application seeking $300,000 but the lender denied it, you still committed wire fraud – you just didn’t succeed in obtaining the funds. Prosecutors can charge both successful and unsuccessful fraud attempts.

Intent is critical. Mistakes aren’t fraud. If you genuinely misunderstood PPP eligibility requirements, relied on bad advice from an accountant, or made good-faith estimates of payroll based on projected hiring, those are defenses. The problem is federal prosecutors assume every misstatement was intentional. They see fraudulent intent in your bank records – you spent PPP funds on luxury purchases, therefore you intended fraud from the start.

Federal Sentencing in Wisconsin PPP and EIDL Cases

Federal judges in Wisconsin’s Eastern and Western Districts use the U.S. Sentencing Guidelines. For fraud offenses, your sentencing range is driven primarily by loss amount and criminal history.

The base offense level for fraud starts at 7, then increases based on loss amount. Fraud involving $150,000 to $250,000 adds 12 levels (total offense level 19). Over $250,000 to $550,000 adds 14 levels (total offense level 21). Over $550,000 to $1.5 million adds 16 levels (total offense level 23).

Sharon Johnson’s case involved about $109,773 in fraud. That falls in the $95,000 to $150,000 range, which adds 10 levels for a total offense level of 17. For a first-time offender with no criminal history (Criminal History Category I), offense level 17 recommends 24-30 months in prison.

She got three months. That’s dramatically below guidelines. She must have received substantial departures – acceptance of responsibility (pleading guilty early), cooperation with investigators, mitigating personal circumstances, restitution paid before sentencing. Her lawyer negotiated an exceptional outcome.

Eric Upchurch obtained over $400,000, which puts him at offense level 21 (33-41 months recommended) or higher depending on his criminal history and whether he received sentencing enhancements. If he goes to trial and loses, he won’t get acceptance of responsibility reductions and could face sentences at the top of the range or above.

Acceptance of Responsibility and Cooperation

Pleading guilty early and demonstrating genuine remorse can reduce your offense level by 2-3 points under the sentencing guidelines. That translates to 6-12 months less prison time in most cases. But you only get this reduction if you plead guilty before trial.

Providing substantial assistance to prosecutors in charging other defendants can result in even larger sentence reductions. If you cooperate fully, testify against co-conspirators, and help the government build cases against others, prosecutors can file a motion for downward departure. We’ve seen cooperating defendants receive sentences 40-50% below guidelines.

Cooperation has risks. You’re admitting to additional crimes as part of your proffer sessions. You might have to testify against friends or family members. Co-defendants might retaliate. And if prosecutors don’t find your cooperation valuable, they might not file the substantial assistance motion.

Restitution paid before sentencing shows the judge you’re taking responsibility. If you can liquidate assets, borrow from family, or arrange financing to repay the fraudulently-obtained funds before your sentencing hearing, judges view that favorably. It doesn’t eliminate prison time, but it can reduce the sentence.

Why Wisconsin PPP Cases Often Take Years

Most PPP and EIDL loans were disbursed in 2020 and 2021. Yet Wisconsin is still filing new criminal cases in 2023, 2024, and 2025. The investigations are slow and methodical.

The SBA Office of Inspector General reviews potentially fraudulent loans, prioritizes cases based on dollar amount and egregiousness, then refers them to FBI field offices and U.S. Attorney’s Offices. Agents subpoena bank records, interview witnesses, execute search warrants, and build cases for grand jury presentation. Complex cases involving multiple defendants can take 18-24 months to investigate.

Then there’s grand jury proceedings, indictment, arraignment, discovery, motion practice, plea negotiations, and trial or sentencing. The entire process from initial investigation to final sentencing can span three to four years.

The statute of limitations was extended from five years to ten years for PPP and EIDL fraud in August 2022. That means federal prosecutors have until 2030 or later to charge fraud committed in 2020. They’re not rushing. They’re building strong cases and letting the investigations develop fully.

When You First Learn You’re Under Investigation

Most people discover they’re under investigation when FBI agents execute a search warrant at their business or residence. Or they receive a grand jury subpoena demanding documents. Or their bank notifies them that federal investigators subpoenaed their account records. Or the SBA sends a letter demanding repayment and threatening criminal referral.

At this stage, you haven’t been charged yet. You’re a target or subject of investigation. What you do in the next 30-60 days can determine whether you get indicted.

Do not speak to federal agents without a lawyer present. Lying to federal agents is a separate federal crime under 18 U.S.C. § 1001, carrying up to five years in prison – even if you’re ultimately not charged with the underlying fraud. Agents will tell you “we just need to hear your side” or “this is your chance to clear things up.” Politely decline and immediately contact a federal defense attorney.

Do not destroy documents, delete emails, or alter records. Obstruction of justice carries serious penalties and demonstrates consciousness of guilt to prosecutors and judges. If you receive a subpoena or search warrant, preserve everything it requests.

Do contact a federal criminal defense lawyer who handles white collar cases. The investigation stage is when we have the most options – voluntary disclosure, cooperation agreements, convincing prosecutors the evidence doesn’t support charges. Once you’re indicted, options narrow significantly.

Why You Need Federal Defense Experience for Wisconsin Cases

Wisconsin has talented criminal defense attorneys. But PPP and EIDL fraud cases are federal prosecutions in the Eastern or Western District of Wisconsin, handled by Assistant U.S. Attorneys who specialize in financial crimes. The investigating agencies are FBI, Secret Service, IRS Criminal Investigation, and SBA Office of Inspector General.

Your defense needs to match that level of sophistication. You need lawyers who understand federal sentencing guidelines, who can challenge the government’s loss calculations, who know how to negotiate substantial assistance agreements, and who’ve successfully defended complex federal fraud cases nationwide.

At Spodek Law Group – we’ve represented clients in federal cases that made national headlines. Todd Spodek defended Anna Delvey in the fraud trial that became a Netflix series created by Shonda Rhimes. We’ve handled the Ghislaine Maxwell juror misconduct case and federal fraud prosecutions involving millions of dollars across the country.

We represent clients nationwide in federal criminal defense. Wisconsin is well within our practice area. We’ll appear in the Eastern or Western District, work with local counsel if needed, and handle your entire defense from investigation through sentencing or trial.

Our Digital Case Management System

We operate a completely online digital portal for all client communications, invoicing, document submission, and access to confidential case information. This enables us to represent clients coast-to-coast effectively. You’ll have 24/7 access to your case file and billing information.

We’re available around the clock because federal investigations don’t respect business hours. FBI agents might execute search warrants at 6 AM. Grand jury subpoenas might arrive with response deadlines in two weeks. Prosecutors might demand plea decisions before indictment with tight deadlines. You need lawyers who respond immediately.

Our approach is simple – we’re loyal only to you, not to maintaining friendly relationships with federal prosecutors. Many criminal defense firms worry about burning bridges with U.S. Attorney’s Offices they appear before regularly. We don’t. Our only concern is getting you the best possible outcome – whether that’s avoiding charges entirely, negotiating a favorable plea deal, or winning at trial.

If you’re under investigation for PPP or EIDL fraud in Wisconsin, or you’ve already been charged, contact Spodek Law Group immediately. Every day you wait is a day prosecutors are building their case while you’re not building your defense.