Madison Man Sentenced to 28 Months for Stealing Paycheck Protection Program Funds

MADISON, WIS. - Timothy M. O'Shea, United States Attorney for the Western District of Wisconsin, announced that Eric Upchurch, 36, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 28 months in federal prison for wire fraud, making false statements to the Small Business Administration (SBA), and money laundering related to the Paycheck Protection Program. Upchurch was convicted of these charges on June 13, 2024, following a jury trial.

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 SBA to offer Paycheck Protection Program (PPP) forgivable loans to business owners negatively affected by the COVID-19 pandemic.

Throughout 2020 and 2021, Upchurch submitted fraudulent PPP loan applications on behalf of several businesses, including: Opportunity, Inc.; Economic Empowerment Wisconsin; One Red Feather; Madison Alliance for Black Economic Empowerment; Young, Gifted, and Black; and a sole proprietorship.

In these PPP loan applications, Upchurch falsely claimed that his businesses earned hundreds of thousands of dollars in revenue, and paid employees tens of thousands of dollars in payroll per month. Upchurch also provided lenders with forged payroll reports and tax forms to corroborate his false statements. Evidence presented at trial proved that none of Upchurch's companies formally employed anyone besides Upchurch, and none of the companies had the revenue necessary to cover the inflated claimed payroll.

In total, Upchurch stole $406,211 and attempted to steal an additional $400,378 in PPP loan proceeds. Upchurch also laundered a portion of his fraudulently obtained PPP funds when he purchased $19,000 worth of Bitcoin.

At sentencing, Judge Conley explained that Upchurch repeatedly lied on documents to fraudulently obtain PPP funds. Judge Conley also noted that, had the lenders not stopped Upchurch's applications, the PPP would have incurred additional loss.

This 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 Chadwick M. Elgersma and William M. Levins.