MADISON, WIS. Eric Upchurch, 36, of Madison, Wisconsin, was convicted of COVID-relief fraud, false statements on loan applications, and money laundering following a three-day trial in federal court. The jury reached a guilty verdict after approximately five hours of deliberation, announced Timothy M. O’Shea, U.S. Attorney for the Western District of Wisconsin.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, aimed to provide financial relief to individuals, families, and businesses affected by the COVID-19 pandemic. As part of the Act, the U.S. Small Business Administration (SBA) was authorized to offer forgivable Paycheck Protection Program (PPP) loans to businesses.
Evidence presented at trial showed that from April 2020 to April 2021, Upchurch submitted 14 fraudulent PPP loan applications for his companies. He falsely reported his companies’ payroll expenses and revenues, and submitted fabricated documentation. As a result, the SBA approved 10 loans, depositing approximately $400,000 into accounts controlled by Upchurch. He then laundered the stolen funds by purchasing cryptocurrency.
Upchurch is scheduled for sentencing on August 30, 2024, and faces up to 20 years in prison for each fraud count, 10 years for money laundering, and 5 years for each false statement count.
The investigation was conducted by the Internal Revenue Service, Federal Bureau of Investigation, and SBA Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Chad Elgersma and William M. Levins.
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