Cedar Rapids man Joshua Brandon Johnson, age 34, was sentenced to 30 months in federal prison for laundering over $20,000 in fraudulently obtained government loan moneys during the COVID-19 pandemic.
Johnson, a convicted felon, received the prison term after a December 1, 2025, guilty plea to one count of engaging in a monetary transaction in property derived from specified unlawful activity.
According to court documents, in June 2021, Johnson received $20,208 in fraudulent Paycheck Protection Program (“PPP”) loan proceeds. The PPP was a forgivable loan program that Congress enacted in 2020 to help small businesses struggling during the pandemic.
Johnson’s fraudulent PPP loan application falsely stated that he was a barber who had earned nearly $100,000 in 2020. He instructed that the PPP money be deposited into a bank account that he controlled in Cedar Rapids, where he withdrew $20,000 in cash by 10:00 a.m. on the morning of the deposit.
Johnson spent the remainder of the PPP loan money on fast food, at gas stations, and for home food delivery. He submitted a false application to have the government loan forgiven, falsely stating that he had spent the $20,208 from the loan on “Payroll Costs.”
Johnson is a convicted felon with an extensive criminal history in Iowa and Indiana, including resisting law enforcement, theft, domestic-abuse assault, possession of controlled substances, and nonsupport of a dependent child.
Johnson was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. He was also ordered to make $20,208 in restitution to the United States Small Business Administration and serve a two-year term of supervised release after the prison term.
Johnson is scheduled to surrender to the United States Marshal on May 19, 2026, at 10:00 a.m.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Federal Bureau of Investigation.
Related Federal Cases
- Joshua Brandon Johnson, Loan Fraud, California 2022 · Indiana
- Austin Jack DeCoster, Distributing Adulterated Eggs, Iowa 2010 · Indiana
- Ramon Cortez Freeman, Heroin Distribution, Iowa 2014 · Indiana
- Paris Lawrence, Conspiracy to Transport Stolen Property, Iowa 2018 · Indiana
- Brandon Kyle Meredith Adcox, CSAM Distribution, Indiana 2024 · Indiana
Key Facts
- State: Iowa
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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