(KRON) — A man who used COVID-19 disaster relief business loans and funding to live a lavish lifestyle was convicted this week and ordered to pay $1.5 million back to the United States government.
Jedrek Upton, 45, of Lincoln, Calif., used some of his COVID loans to lease a Ferrari and a Lamborghini for himself, as well as make a large down-payment on a $2.7 million, 10-acre property, according to the U.S. Attorney’s Office Eastern District of California.
Upton pleaded guilty to one count of wire fraud and one count of money laundering, U.S. Attorney Eric Grant announced Wednesday.
Prosecutors said, between January 2021 and May 2022, Upton repeatedly lied on applications for COVID funds that he submitted on behalf of his businesses. He claimed that the money would be used to alleviate economic injury caused by the COVID pandemic. Upton also submitted falsified IRS documents, as well as lied about his number of employees, according to prosecutors.
IRS investigators launched an investigation into Upton that dug up evidence of fraud and money laundering.
“In reality, some of the businesses had no employees or payroll, and Upton spent much of the money received on personal expenses. Upton received nearly $1.5 million in ill-gotten loans from the United States, a large portion of which was ultimately forgiven after Upton falsely claimed that he had spent it on payroll. Instead of legitimate business expenses, the money that Upton received allowed him to fund a lavish lifestyle,” USAOEDC wrote.
In addition to pleading guilty, Upton agreed to forfeit the 10-acre property he had purchased, prosecutors said. He is scheduled to be sentenced by U.S. District Judge John Mendez on March 24, 2026. Upton faces up to 20 years in prison.
Amy Larson
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