CEDAR RAPIDS, Iowa (KCAU) – A man from Emmet County, Iowa, has been sentenced for his role in a scheme to defraud $1.3 million from the U.S. out of the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds.
In federal court in the Northern District of Iowa in Cedar Rapids, Donald Trosin, 57, of Armstrong, was sentenced to 40 months in prison, according to a release from the U.S. Attorney’s Office. He must also pay $1.3 million in restitution to the Small Business Administration (SBA) and the lender of the PPP loan. After his prison term, he must serve two years of supervision.
The sentencing comes after Trosin pleaded guilty on February 16 to one count of major fraud against the US and one count of money laundering conspiracy. Authorities said there was evidence that Trosin was involved in the defrauding scheme where more than 20 applications for PPP and EIDL loan funds were submitted to the SBA in Trosin’s and another person’s name. They said that the applications falsely stated Trosin had 120 employees on his payroll and over $5 million in payroll expenses when he didn’t actually own a business. The release said he admitted that after receiving the funds, he transferred or tried to transfer the proceeds to other people across the US and other countries, including China.
Trosin was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted as part of the COVID-19 Fraud Enforcement Task Force to combat and prevent pandemic-related fraud. The task force was established by the attorney general on May 17.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.