Madison business owner Eric Upchurch, 36, was convicted Thursday on a total of 12 charges, including five counts of COVID-19 relief fraud, six counts of making false statements, and one count of money laundering, the Wisconsin State Journal reports.
In Madison’s U.S. District Court, the jury deliberated for roughly five hours before pronouncing Upchurch guilty of all charges related to funds his businesses received as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Through the Paycheck Protection Program (PPP), the CARES Act authorized forgivable loans to business owners affected by the pandemic.
Evidence presented by government prosecutors showed that from April 2020–April 2021, Upchurch on behalf of his various companies submitted 14 PPP loan applications to the U.S. Small Business Administration. Prosecutors said he falsely represented his companies’ payroll expenses and revenues.
The SBA approved 10 of the loans as a result and deposited around $400,000 into bank accounts under Upchurch’s control. The prosecution also asserted that Upchurch laundered fraudulently obtained money by buying cryptocurrency.
Upchurch’s indictment contended that he operated companies called Opportunity Inc. and Economic Empowerment Wisconsin, among others, which had no records of making a profit or paying employees in 2019.
A PPP application filed by Upchurch on behalf of Opportunity Inc. in April 2020 claimed the company employed 12 people and had an average monthly payroll of $54,000. The indictment states that Upchurch provided a fake profit and loss statement to Summit Credit Union showing the company had earned revenue of a little over $1 million, with expenses of $778,690. Similar false statements were allegedly made on behalf of Upchurch’s other businesses.
Upchurch faces sentencing on Aug. 30 by U.S. District Judge William Conley and up to 20 years in prison for each fraud conviction, up to five years on each false-statement conviction, and up to 10 years on the money-laundering conviction.
