Sentencing Memorandum - United States v. Maurice Fayne related docket

Record facts

U.S. District Court for the Northern District of Georgia · No. 1:20-cr-00228-MHC-JKL · Doc. 215-4 · 2021-09-08 · Docket on CourtListener

Summary

Doc. 215-4 in United States v. Maurice Fayne, No. 1:20-cr-00228-MHC-JKL, in the U.S. District Court for the Northern District of Georgia, filed September 8, 2021, is a copy of a U.S. Department of Justice press release dated July 12, 2021 from the U.S. Attorney's Office for the Northern District of Iowa. The release announces that an Armstrong man was sentenced to 40 months' imprisonment after a February 16, 2021 guilty plea to one count of Major Fraud Against the United States and one count of Money Laundering Conspiracy. It states that more than 20 PPP and EIDL applications falsely represented 120 employees and over $5 million in payroll expenses. The release reports over $1.3 million in restitution and a two-year term of supervised release, and gives the case file number as 20-CR-4066.

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United States Department of Justice

THE UNITED STATES ATTORNEY'S OFFICE

NORTHERN DISTRICT of “IOWA

U.S. Attorneys » Northern District of lowa » News

Department of Justice
U.S. Attorney’s Office

Northern District of lowa

FOR IMMEDIATE RELEASE Monday, July 12, 2021

Armstrong Man Sentenced to Federal Prison for Defrauding the
United States Out of More than $1 Million in Paycheck Protection
Program Fraud Scheme

Attempted to Transfer Funds Across the United States and to China

An Armstrong man who participated in a scheme to defraud the United States out of Paycheck Protection
Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, and conspired to launder over $1.3 million
in fraud proceeds, was sentenced yesterday to more than three years in federal prison.

Donald Franklin Trosin, age 57, from Armstrong, lowa, formerly of Champlin, Minnesota, received the prison
term after a February 16, 2021 guilty plea to one count of Major Fraud Against the United States and one
count of Money Laundering Conspiracy.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in late March
2020 that provides emergency financial assistance, including PPP and EIDL loans, to the millions of
Americans who are suffering the economic effects of the COVID-19 pandemic. Evidence presented at
Trosin’s guilty plea and sentencing hearings established that Trosin participated in a scheme to defraud the
United States out of PPP and EIDL loan funds after more than 20 applications were submitted to the Small
Business Administration (SBA) in the name of Trosin and another person. The applications falsely
represented that Trosin had 120 employees on his payroll and over $5 million in payroll expenses when, in
truth, Trosin did not operate a business at all. Trosin also admitted that, after receiving the funds through
banks in Minnesota and Northwest lowa, he transferred or attempted to transfer the proceeds from the
scheme to other individuals in other states and countries, including China.

Trosin was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand.
Trosin was sentenced to 40 months’ imprisonment. He was ordered to make over $1.3 million in restitution
to the Small Business Administration and the lender of the PPP loan. Trosin must also serve a two-year
term of supervised release after the prison term. There is no parole in the federal system.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to
marshal the resources of the Department of Justice in partnership with agencies across government to
enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to
investigate and prosecute the most culpable domestic and international criminal actors and assists agencies
tasked with administering relief programs to prevent fraud by, among other methods, augmenting and

https://www.justice.gov/usao-ndia/pr/armstrong-man-sentenced-federal-prison-defrauding-united-states-out-more-1-million 1/2
incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent
actors and their schemes, and sharing and harnessing information and insights gained from prior
enforcement efforts. For more information on the Department’s response to the pandemic, please visit
https://www.justice.gov/coronavirus.

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 at: https://www.justice. gov/disaster-fraud/ncdf-disaster-complaint-form.

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 is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated
by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Small
Business Administration, Office of Inspector General, and the Treasury Inspector General for Tax
Administration.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 20-CR-4066.

Topic(s):
Coronavirus
Financial Fraud

Component(s):
USAO - lowa, Northern

Updated July 13, 2021

https://www.justice.gov/usao-ndia/pr/armstrong-man-sentenced-federal-prison-defrauding-united-states-out-more-1-million 2/2

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