Criminal Defense Lawyers

Wisconsin PPP Loan Fraud Lawyers

Last Updated on: 6th December 2025, 07:03 pm

Nearly 40 people in Wisconsin have been charged with COVID-19 relief fraud. That number keeps growing. Both the Eastern District in Milwaukee and the Western District in Madison have active investigations, and federal prosecutors have made clear they’re not slowing down anytime soon.

If you received a PPP or EIDL loan and you’re worried about whether the government is looking at you, this article will tell you exactly what Wisconsin defendants have faced. Not theoretical maximums. Real sentences from real cases prosecuted right here in Wisconsin. The range goes from 3 months in prison to nearly 5 years, depending on how much you took and how you handled the investigation.

Here’s what nobody else will tell you: the outcome depends heavily on cooperation, timing, and having the right federal criminal defense lawyer. Some Wisconsin defendants got probation. Others got years in federal prison for smaller amounts because they made critical mistakes during the investigation.

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

OK so heres the thing about PPP loan fraud in Wisconsin. The government isnt charging you under some special COVID law. There using federal fraud statutes that have been around for decades, and there stacking multiple charges to maximize pressure.

The most common charge is wire fraud under 18 USC 1343. You submitted your application electronically, which means you used interstate wires. Thats enough for wire fraud. The maximum penalty is 20 years, but it jumps to 30 years if the fraud affected a financial institution. Since PPP loans went through banks, prosecutors gonna argue for the higher maximum.

Bank fraud under 18 USC 1344 is another big one. Your facing up to 30 years and a $1 million fine. Every PPP application went through a federally insured bank, so this charge is basicly always available to prosecutors.

Money laundering under 18 USC 1956 gets added when you moved the money around after recieving it. Did you transfer PPP funds to personal accounts? Buy a car? Pay off credit cards? Thats money laundering. Sharon Johnson in Madison got charged with both wire fraud AND money laundering for her $109,000 fraud.

False statements to the SBA under 18 USC 1014 carries up to 30 years. If you said something false on your application about payroll, employees, or revenue, this charge is probly on the table.

Then theres conspiracy charges. If you worked with anyone else, if someone helped you prepare false documents, if a loan preparer inflated your numbers, your all looking at conspiracy charges under 18 USC 371. Thats 5 years per count on top of everything else.

What Wisconsin PPP Fraud Sentences Actually Look Like

Heres were we get into what competitors wont tell you. Forget the 30-year maximums. What are judges in Wisconsin actualy handing down?

Thomas Smith from Pewaukee ran the biggest scheme weve seen in Wisconsin. He submitted false applications for 8 different companies claiming fake payroll expenses. Total fraud: over $1.2 million, with about $1 million actualy funded. His sentence? 57 months in federal prison, which is almost 5 years. Plus $960,000 in restitution. He had co-conspirators helping him, which made it worse.

Stephen Smith from Milwaukee did something similar but smaller. He fraudulently got $600,000 in PPP loans for 3 companies using false payroll statements. His sentence? 36 months, which is 3 years. Restitution was $397,500. Same basic scheme as Thomas Smith, but lower amount equaled lower sentence.

Ahmad Kanan from Madison combined PPP fraud with access device fraud. His fraud amount was about $147,000. Sentence: 42 months, or 3.5 years. The additional charges for access device fraud pushed his sentence higher than the fraud amount alone would suggest.

Robert Solberg from Crivitz is an intresting case. His fraud was only $20,833, which is small compared to others. But he got 18 months in federal prison. Why? Because he applied for the PPP loan while he was already under indictment for conspiracy to commit odometer tampering. He was literaly awaiting sentencing on another federal crime when he submitted the fraudulent application. Judge William Griesbach said the sentence was “required to send a message…that theft from government programs, especially while awaiting sentencing on another criminal matter, would result in serious consequences.”

Sharon Johnson from Madison got the lightest sentence weve seen. She committed wire fraud and money laundering on PPP and EIDL applications totaling about $109,000. Her sentence? 3 months in federal prison plus $109,733 in restitution. Cooperation and a smaller amount made the difference.

The pattern is clear: amount matters, but cooperation and criminal history matter just as much. Robert Solberg got 18 months for $20,000 because of his existing case. Sharon Johnson got 3 months for $109,000 because she cooperated.

The $10.8 Million Corporate Settlement Nobody Talks About

Heres something that should terrify business owners. In April 2025, a group of affiliated companies controlled by a Wisconsin family office agreed to pay $10,853,246 to settle PPP fraud allegations. No criminal charges. Just civil penalties under the False Claims Act.

What did they do wrong? The companies, including Barrington Venture Holding Company, The Garlands of Barrington, and Nuestro Queso, applied for PPP loans seperately even though they were all controlled by the same family office and collectivley employed more than 500 people.

Under SBA rules, affiliated companies have to combine there employee counts when determining eligibility. These companies got 6 PPP loans totaling over $5 million by applying as if they were seperate businesses. The government said they “took deliberate steps to evade regulatory detection.”

Acting U.S. Attorney Richard Frohling explained why this matters: “Congress decided that it did not want to provide taxpayer dollars to large companies or groups of affiliated companies who likely had access to private sources of capital typically unavailable to American small businesses.”

The lesson? Even if you dont get criminaly charged, the civil penalties can be devistating. This family office paid more than double what they recieved in loans.

Eastern District vs Western District: Where Your Case Goes Matters

Wisconsin has two federal judicial districts and wheather your case goes to Milwaukee or Madison can affect your strategy.

The Eastern District of Wisconsin covers Milwaukee, Waukesha, Racine, Kenosha, Green Bay, Sheboygan, and most of northeastern Wisconsin. This is were the biggest PPP fraud cases have been prosecuted. Thomas Smith, Stephen Smith, and Robert Solberg all went through the Eastern District. Judge William C. Griesbach has handled multiple PPP fraud sentencings and has shown hes willing to impose significant prison time.

The Western District of Wisconsin covers Madison, La Crosse, Eau Claire, and central/western Wisconsin. Sharon Johnson, Ahmad Kanan, and Curtis Alleyne were prosecuted here. Judge William M. Conley handles many of these cases.

The county were the fraud occured determines which district handles your case. If you submitted your application from Milwaukee or the surrounding area, your going to the Eastern District. If you submitted from Madison or western Wisconsin, your going to the Western District.

Both districts are activley prosecuting PPP fraud. Both U.S. Attorney’s Offices have told reporters they will continue pursuing these cases. Theres no safe haven in Wisconsin.

How Federal Prosecutors Build PPP Fraud Cases in Wisconsin

Understanding how they catch people helps you understand your own exposure. Heres what investigators look for:

First, they compare your PPP application to your tax returns. The SBA and IRS share data now. If you claimed $400,000 in payroll on the PPP application but your Schedule C shows $50,000 in income, thats a red flag that gets automaticly flagged for review.

Second, bank records show were the money went. Thomas Smith got caught because he “directed his co-conspirators to send him portions of the PPP funds” within days of recieving them. The transfers to personal accounts were obvious evidence of fraud.

Third, they verify wheather your business actualy existed and had the employees you claimed. Curtis Alleyne from Almond got caught because he “attached forged tax documents that he never actually filed with the IRS.” You cant claim gross revenue of $500,000 when you never reported anything to the IRS.

Fourth, co-conspirators talk. Stephen Smith had associates helping him. When they got caught, the whole scheme unraveled. If someone helped you prepare your application, and that person gets investigated, your name is going to come up.

Never assume the government doesn’t know. They have your application, your tax records, your bank records, and potentially testimony from anyone who helped you.

Defense Strategies That Actually Work

OK so your under investigation or facing charges. 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. The SBA issued conflicting guidance. Alot of people made honest mistakes about wheather there business qualified, how to calculate payroll, or what expenses were covered. Honest confusion isnt fraud.

Good faith reliance on professionals helps 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.

Voluntary repayment before charges can completley change the trajectory of your case. Sharon Johnson got 3 months partly because she didnt try to hide or fight. If your under investigation but not charged yet, returning the money can affect wheather prosecutors even bring charges.

Challenging the loss calculation matters enormously for sentencing. Federal guidelines use “intended loss” not just actual loss. If you applied for $100,000 but only got $50,000, prosecutors might argue for sentencing based on the full application amount. A good defense lawyer fights this because every dollar affects your guideline range.

Can You Still Be Prosecuted for a 2020 PPP Loan?

Yes. Absolutley yes. The statute of limitations for PPP fraud is longer than most people realize.

In 2022, Congress passed the PPP and Bank Fraud Enforcement Harmonization Act, which extended the statute of limitations to 10 years for PPP fraud. That means applications from 2020 can be prosecuted through 2030.

And the clock doesnt start when you got the loan. It starts when you made your last false statement. If you submitted a forgivness application with false information in 2021, the clock starts then. Every interaction with the SBA containing false information resets your exposure window.

Wisconsin investigators are methodical. The SBA Office of Inspector General reviews loans, prioritizes cases, and refers them to FBI field offices and U.S. Attorney’s Offices. This process takes years. Cases prosecuted in 2024 often involve loans from 2020.

Robert Solberg’s case shows how patient prosecutors can be. He got his loan in 2020, wasnt charged until later, and wasnt sentenced until years after that. The government has time on there side.

What to Do If Federal Agents Contact You

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

FBI agents, SBA investigators, IRS Criminal Investigation, Secret Service, 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. Close the door. Thats it.

Heres why this matters: agents are trained to make conversations seem casual. They might say there “just trying to clear things up” or “help you get ahead of this.” There not there to help you. There building a case. Anything you say can and will be used against you.

Even if you think you can explain everything, your probly wrong. You dont know what evidence they already have. You dont know what questions are designed to trap you. You dont know wheather theyve already talked to your accountant, your loan preparer, or other people connected to your application.

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.

If you get a target letter, thats the government telling you your the focus of the investigation and an indictment is likely. This is emergency territory. You need a lawyer immediatly.

Three Mistakes That Make Wisconsin PPP Cases Worse

Mistake #1: Applying while under investigation for something else. Robert Solberg got 18 months for a $20,000 fraud because he applied while awaiting sentencing on another federal charge. If your already in legal trouble, submitting a fraudulent PPP application makes everything worse. The judge will see it as showing you cant be trusted.

Mistake #2: Involving other people. Thomas Smith and Stephen Smith both got harsh sentences partly because they “directed co-conspirators” to help them. When you bring other people into a fraud scheme, you create witnesses against yourself. When they get caught, they often cooperate to reduce there own sentences.

Mistake #3: Forging documents. Curtis Alleyne attached “forged tax documents that he never actually filed with the IRS.” Document forgery is a seperate offense that adds to your exposure. Its also easy to prove because the IRS can simply confirm they never recieved those returns.

The Restitution Reality Nobody Prepares You For

Prison time isnt the only punishment. Every Wisconsin PPP fraud defendant has been ordered to pay restitution, and the amounts are significant.

Thomas Smith owes $960,000. Stephen Smith owes $397,500. Ahmad Kanan owes $147,060. Sharon Johnson owes $109,733. These are court-ordered debts that dont go away in bankruptcy. You will pay this money back or the government will garnish your wages, seize your assets, and extend your supervised release until you do.

The restitution amount is calculated based on the actual loss to the SBA, not what you personaly recieved. If you were part of a conspiracy and the scheme stole $1 million total, you could be held jointly and severaly liable for the full amount even if you only got $50,000 yourself.

And remember that $10.8 million corporate settlement? Thats civil penalties on top of restitution. Under the False Claims Act, the government can pursue treble damages, which means three times the fraud amount, plus per-claim penalties exceeding $11,000 each. Even without criminal charges, the civil exposure can be devestating.

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, even excellent ones, might not know federal discovery rules, federal sentencing guidelines, or how to negotiate with Assistant U.S. Attorneys in Milwaukee or Madison. Federal court is a different world. The conviction rate exceeds 90%. Thats not a typo. Nine out of ten federal defendants are convicted.

You need someone who knows Judge Griesbach in the Eastern District and Judge Conley in the Western District. Who has relationships with the prosecutors in those offices. Who understands how to present mitigation at sentencing, how to argue for departures from the guidelines, and how to structure cooperation agreements that actualy reduce your exposure.

The sentencing guidelines are complicated. Your sentence depends on loss amount, criminal history, wheather you had a leadership role, wheather the offense involved sophisticated means, and dozens of other factors. Each factor adds or subtracts levels from your offense score. The difference between 2 levels can be years of prison time.

Cooperation is another area were experiance matters. Should you cooperate with the government? Maybe. It depends on what you know, who else is involved, and wheather prosecutors value what you can offer. A good federal lawyer knows how to structure a proffer session so you get credit for cooperation without accidentally incriminating yourself further. A bad lawyer lets you walk into a proffer blind and say things that make your situation worse.

Sharon Johnson got 3 months. Thomas Smith got 57 months. The difference wasnt just the amount. It was how they handled the case from the moment they knew they were in trouble. The decisions you make in the first few weeks after learning your under investigation can determine wheather you get probation or years in federal prison.

If your facing PPP fraud allegations in Wisconsin, your facing potential prison time, hundreds of thousands in restitution, possible civil penalties, and a felony record that follows you forever. This isnt the time to handle things yourself or hope the government forgets about you. They wont forget. They have until 2030 or later to prosecute you.

Contact a federal criminal defense lawyer who handles white collar cases in Wisconsin. Ask about there experiance with PPP fraud specifically. Ask how many cases theyve handled in the Eastern or Western District. Ask what outcomes theyve achieved for clients in similar situations. The government has charged nearly 40 people in Wisconsin already. There not stopping. If you think your under investigation, act now. Not next month. Now.