wisconsin ppp and eidl loan fraud lawyers

Thanks for visiting Federal Lawyers. We’re a second-generation law firm managed by our lead attorney – 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.

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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.

Legal Scenario: What Would You Do?

Scenario

You submitted a PPP loan application during COVID and now realize some employee count numbers may have been inaccurate.

Could this be considered fraud?

Attorney's Answer

Inaccuracies in PPP applications can trigger federal fraud charges carrying up to 20 years in prison. However, honest mistakes differ from intentional misrepresentation. Documentation of your good-faith efforts is critical to your defense.

This is general information only. Contact us for advice specific to your situation.

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