Utah PPP Loan Fraud Lawyers

Utah PPP Loan Fraud Lawyers: Federal Defense When Your COVID Loan Triggers an Investigation

A Utah woman claimed 430 fake employees to obtain $10 million in PPP funds, then invested $150,000 in a movie production. A Salt Lake City restaurant owner used $1.9 million in EIDL money to buy houses in Utah and Las Vegas, a BMW M3, a Jaguar F-PACE, and $39,000 in cryptocurrency. A Cottonwood Heights businessman wired $225,000 from his PPP loan directly into his TD Ameritrade investment account. These aren’t hypothetical scenarios. These are real Utah cases prosecuted in federal court, and the defendants are facing prison sentences ranging from 12 months to potentially decades.

U.S. Attorney Trina Higgins has publicly stated that “PPP fraud imposes serious penalties,” and her office is using these prosecutions as deterrents. A Federal COVID-19 Fraud Strike Force involving Homeland Security Investigations, the FBI, SBA Office of Inspector General, and Treasury is actively hunting pandemic fraudsters across Utah. If you received a PPP or EIDL loan and you’re worried about what might happen, this article will tell you exactly what Utah defendants have faced.

Here’s what nobody else will tell you: even relatively small frauds like a $266,000 scheme resulted in 24 months federal prison. The government traces money into investment accounts, cryptocurrency purchases, and luxury vehicle dealerships. A three-person fraud ring in Tooele County got indicted in 2024 for schemes dating back to 2020. The investigations are ongoing, and the statute of limitations extends to 2030 for loans obtained in 2020.

What Federal Charges Can You Face for PPP Fraud in Utah?

The government uses multiple federal fraud statutes to prosecute PPP cases in Utah. Wire fraud under 18 USC 1343 is the most common charge because you submitted your application electronically. Maximum penalty is 20 years, but it jumps to 30 years if the fraud affected a financial institution. Since every PPP loan went through a bank, prosecutors will argue for the higher maximum.

False statements to influence a bank under 18 USC 1014 carries up to 30 years. Allison Baver got convicted of this charge for claiming her company had 430 employees and $4.7 million monthly payroll when neither was true. Money laundering under 18 USC 1956 gets added when you moved the fraud proceeds. Chris McCormick got hit with this after wiring $225,000 to his TD Ameritrade account. That single wire transfer turned a fraud case into a fraud plus money laundering case.

Conversion of government property under 18 USC 641 applies specifically to EIDL loans since those came directly from federal funds. Giuseppe Mirenda pled guilty to this for his $1.9 million restaurant scheme. Maximum is 10 years per count. Wire fraud plus conversion plus money laundering can stack to create massive exposure even for a single loan scheme.

Conspiracy charges under 18 USC 371 apply when multiple people work together. The Tooele County fraud ring, three defendants working together on 10 fraudulent applications, all face conspiracy charges on top of there individual fraud counts. Each conspirator can be held liable for the full amount of the scheme.

What Utah PPP Fraud Sentences Actually Look Like

Forget the 30-year maximums. Heres what judges in Utah are actualy handing down:

Chris E. McCormick from Cottonwood Heights got 24 months in federal prison for his $266,000 PPP fraud. He falsely claimed his company Peak Debt Consumption LLC had 12 employees and $100,000 monthly payroll. What really sealed his fate was that he wired $225,000 directly to his personal TD Ameritrade investment account. That transfer became the money laundering charge that stacked on top of the fraud. Judge ordered him to pay $465,995 in restitution plus 36 months supervised release after prison.

Troy Campbell from Taylorsville got 18 months for his $437,230 scheme. He claimed his company SALT IT had 22 employees and $174,892 monthly payroll when it didnt. He also submitted fake tax documents that were never filed with the IRS. U.S. District Judge David Barlow sentenced him to pay full restitution of $437,230 plus two years supervised release.

Giuseppe Mirenda from Salt Lake City got 12 months and one day for his massive $1,889,400 EIDL fraud. Why only 12 months for nearly $2 million? Several factors: he was a restaurant owner who pled guilty early, he repaid approximately $680,000 before sentencing, and the government recovered another $1.25 million from forced sales of the houses he bought. Even so, he still got prison time plus a $250,000 fine and 3 years supervised release.

Allison Marie Baver from Taylorsville faces the most serious consequences. She was convicted at trial of defrauding the PPP program out of $10 million by claiming her company Allison Baver Entertainment had 430 employees when it had zero. She claimed $4.7 million monthly payroll when there was no payroll at all. She transferred $150,000 to invest in a movie production. The jury found her guilty on all four counts including contempt. Shes awaiting sentencing and faces potential decades in prison.

The pattern is clear: sentences range from 12 months to potential decades based on fraud amount, whether you cooperated, whether you repaid funds, and whether you went to trial.

The Federal COVID-19 Fraud Strike Force in Utah

Heres what competitors wont tell you: Utah has a dedicated Federal COVID-19 Fraud Strike Force actively investigating pandemic fraud cases. This isnt just the FBI showing up alone. Its a coordinated multi-agency task force that includes:

Homeland Security Investigations (HSI), the FBI, SBA Office of Inspector General, Department of Defense, HUD Office of Inspector General, Department of Labor Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration. When your under investigation in Utah, all these agencies can share information and coordinate there efforts.

Why does this matter? Because the task force has resources to trace money movement in ways individual agencies couldnt. Giuseppe Mirenda’s purchases of houses in Utah and Las Vegas, his BMW and Jaguar, his crypto purchases, every transaction got documented. Chris McCormick’s wire to TD Ameritrade got flagged. The Tooele County ring’s gambling expenditures got traced.

U.S. Attorney Trina Higgins has publicly stated that these prosecutions serve as deterrents. Her office is making examples of Utah defendants to discourage others. If your hoping the government dosnt have the resources to investigate your case, your wrong.

Investment Account Transfers: The Money Laundering Trap

Chris McCormick’s case illustrates a critical mistake that many PPP fraud defendants make. He recieved $266,000 in PPP funds, then wired $225,000 to his personal TD Ameritrade investment account. That wire transfer became the foundation of his money laundering conviction.

Heres why investment account transfers are so dangerous:

First, they create crystal-clear evidence of intent. PPP loans were supposed to go toward payroll and business expenses. Transfering the money to a personal brokerage account shows you never intended to use it for the stated purpose. Its direct proof of fraud.

Second, brokerage accounts have excellent records. TD Ameritrade, Schwab, Fidelity, every brokerage cooperates with federal investigators. They track every deposit, every transaction, every withdrawal. Your investment history is not private when the government subpoenas your accounts.

Third, money laundering charges add substantial prison time. McCormick didnt just get charged with fraud. He got charged with fraud AND money laundering. That combination resulted in 24 months prison plus nearly $466,000 in restitution.

If you transferred PPP funds to an investment account, the government can see it. Brokerage records are easily subpoenable. The transfers themselves become evidence of criminal intent.

Luxury Purchases as Evidence: The Mirenda Pattern

Giuseppe Mirenda’s case shows what happens when you spend EIDL money on lifestyle upgrades. Within months of recieving $1.9 million, he purchased:

Two houses, one in West Jordan, Utah and one in Las Vegas, Nevada, for over $1.1 million combined. A BMW M3. A Jaguar F-PACE. And $39,000 in cryptocurrency. All of these purchases became evidence against him.

Restaurant owners, car dealerships, title companies, crypto exchanges, all of them have records that federal investigators can access. The government traced every dollar of Mirenda’s spending. The forced sale of his houses recovered approximately $1.25 million for the government.

This pattern of spending, rapidly converting loan proceeds into luxury assets, proves that you never intended to use the money for business purposes. Its not just evidence of fraud. Its evidence of deliberate fraud, which affects your sentencing calculation.

The Tooele County Fraud Ring: Conspiracy Exposure

In February 2024, a federal grand jury indicted three Tooele County residents for running a PPP fraud ring. Halee Ann Mehlbauer (38), Timothy George Lopez (62), and Rick A. Bolton (65) allegedly submitted 10 fraudulent PPP applications and 5 forgiveness applications using fictitious businesses between July 2020 and January 2022.

They attempted to steal $422,242.50, actualy obtained $195,930.50, and got $155,477.50 in loan forgiveness. The money went to debt payments, vehicle costs, and gambling. Mehlbauer allegedly transferred $49,475.02 directly to herself.

Heres why this case matters if you had partners: each defendant faces seven counts of wire fraud plus aiding and abetting. Mehlbauer also faces money laundering charges. In a conspiracy, every participant can be held liable for the entire scheme, not just there personal take.

If you worked with a business partner, accountant, or loan preparer on fraudulent applications, you may both face conspiracy charges. The government dosnt need to prove you personally submitted every application. They just need to show you participated in the scheme.

Defense Strategies That Actually Work

OK so your facing an investigation or charges in Utah. What can actualy help you?

The biggest defense is lack of intent. The government has to prove you KNEW your statements were false and you INTENDED to defraud. If you genuinley believed your payroll numbers were accurate, if you relied on records your accountant gave you, if you thought you understood the rules correctly, thats a defense.

The PPP program was confusing. Rules changed constantly. SBA guidance was contradictory. Alot of business owners made honest mistakes about how to calculate payroll or wheather there business qualified. Honest confusion isnt fraud.

Early repayment makes a significant difference. Giuseppe Mirenda repaid approximately $680,000 before sentencing. That cooperation, combined with his guilty plea, contributed to his relativley light 12-month sentence for a nearly $2 million fraud. The government wants recovery, and demonstrating willingness to make victims whole can affect both charging decisions and sentencing.

Good faith reliance on professionals matters too. If your CPA prepared the application, if a loan officer told you what numbers to use, if you followed advice from someone you reasonably trusted, the government has to show you knew there advice was wrong.

Going to trial is risky. Allison Baver took her case to trial and got convicted on all four counts including contempt. Shes now facing potential decades in prison for a $10 million fraud. The conviction rate in federal court exceeds 90%. If the evidence against you is strong, a negotiated plea usualy results in a better outcome then trial.

Can You Still Be Prosecuted for a 2020 PPP Loan?

Yes. Absolutley yes. The Tooele County fraud ring was indicted in February 2024 for schemes that started in July 2020. Thats nearly four years later.

In 2022, Congress extended the statute of limitations to 10 years for PPP fraud. Applications from 2020 can be prosecuted through 2030. Applications from 2021 can be prosecuted through 2031.

And the clock starts when you made your last false statement. If you submitted a forgivness application with false certifications, the clock starts then. Every false certification resets your exposure window.

U.S. Attorney Higgins has made clear that her office will continue prosecuting these cases. The Federal COVID-19 Fraud Strike Force is still active. The investigations are ongoing.

What to Do If Federal Agents Contact You

Do not talk to federal agents without an attorney present. Period.

HSI agents, FBI agents, IRS Criminal Investigation, SBA-OIG, whoever shows up, your not required to speak with them. You have a Fifth Amendment right to remain silent. Use it.

Be polite. Take there card. Say you need to speak with a lawyer first. Thats it.

In Utah specifically, know that the Federal COVID-19 Fraud Strike Force shares information across multiple agencies. When you talk to one agent, youre creating evidence that all of them can use. The task force coordination means anything you say will be analyzed by investigators from HSI, FBI, SBA-OIG, Treasury, and potentially others.

If you recieve a grand jury subpoena for documents, you generaly have to comply. But you dont have to testify without immunity. A federal criminal defense lawyer can negotiate the terms of your cooperation.

Why You Need a Federal Criminal Defense Lawyer

PPP fraud is federal. The loans came from the Small Business Administration. Prosecutions happen in federal court under federal rules with federal judges who follow federal sentencing guidelines.

State criminal defense attorneys might not know federal discovery rules, federal sentencing guidelines, or how to negotiate with Assistant U.S. Attorneys in Salt Lake City. Federal court is a completley different system. The conviction rate exceeds 90%.

In Utah specifically, you need someone who knows Judge Howard Nelson, Judge David Barlow, and Judge Jill Parrish. Who has relationships with prosecutors in U.S. Attorney Higgins’ office. Who understands how the Federal COVID-19 Fraud Strike Force operates and what evidence they typically gather.

The sentencing guidelines are complicated. Your sentence depends on loss amount, criminal history, wheather you cooperated, wheather you repaid funds, wheather you went to trial, and dozens of other factors. Giuseppe Mirenda got 12 months for $1.9 million because he cooperated. Allison Baver faces potential decades for $10 million because she went to trial. The difference is dramatic.

If your facing PPP fraud allegations in Utah, your facing potential prison time, hundreds of thousands or millions in restitution, and a felony record that follows you forever. U.S. Attorney Higgins has made pandemic fraud enforcement a priority. The Strike Force is still active. This isnt the time to hope they dont find you. Contact a federal criminal defense lawyer who handles white collar cases in Utah. Act now.