A Madison, Wisconsin, man has been convicted of COVID-19 relief fraud, making false statements on loan applications, and money laundering. Eric Upchurch, 36, was convicted following a three-day trial in federal court in Madison. The jury reached a verdict today after approximately five hours of deliberation.
The guilty verdict is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin. “We are committed to protecting the integrity of the COVID-19 relief programs and holding accountable those who abuse the system for personal gain,” said O’Shea.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted to provide immediate financial assistance to individuals, families, and organizations affected by the COVID-19 pandemic. This Act authorized the U.S. Small Business Administration (SBA) to offer Paycheck Protection Program (PPP) forgivable loans to business owners negatively affected by the COVID-19 pandemic.
The government presented evidence at trial that from April 2020 to April 2021, Upchurch submitted 14 PPP loan applications to the SBA on behalf of his various companies. In each PPP application, Upchurch falsely represented his companies’ payroll expenses and revenues. Upchurch also submitted false documentation. In total, Upchurch’s fraudulent representations caused the SBA to approve 10 of the loans and deposit approximately $400,000 into bank accounts controlled by Upchurch.
The government also presented evidence that Upchurch laundered fraudulently obtained funds by purchasing cryptocurrency. “This conviction is a significant blow to those who would seek to exploit the COVID-19 relief programs for personal gain,” said O’Shea.
U.S. District Judge William M. Conley scheduled sentencing for August 30, 2024. Upchurch faces a maximum penalty of 20 years in federal prison on each of the fraud counts and 10 years on the money laundering count. Upchurch faces a maximum penalty of 5 years in prison on each of the false statement counts.
The case was investigated by the Internal Revenue Service, Federal Bureau of Investigation, and the Small Business Administration, Office of Inspector general. The prosecution is being handled by Assistant U.S. Attorneys Chad Elgersma and William M. Levins.
Related Federal Cases
- Madison Man Convicted of Covid-Relief Fraud, Money Laundering · Wisconsin
- Sussex County Man Indicted for $M COVID-19 Fraud Scheme · Wisconsin
- Thomas C. Balsiger Convicted in $100M Coupon Fraud Scheme · Wisconsin
- Tomeki L. Tyson Indicted on 21 Counts of Tax Fraud · Wisconsin
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Key Facts
- State: Wisconsin
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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