Felon Sentenced to Federal Prison for Laundering Pandemic Loan Money

A Cedar Rapids man who laundered over $20,000 in fraudulently obtained government loan moneys during the COVID-19 pandemic was sentenced on April 23, 2026, to more than two years in federal prison. Joshua Brandon Johnson, age 34, from Cedar Rapids, Iowa, formerly of Elkhart, Indiana, received the prison term after a December 1, 2025, guilty plea to one count of engaging in a monetary transaction in property derived from specified unlawful activity.

In a plea agreement, Johnson admitted that, in June 2021, he received $20,208 in fraudulent Paycheck Protection Program ("PPP") loan proceeds. The PPP was a forgivable loan program that Congress enacted in 2020 to help small businesses that were struggling during the COVID-19 pandemic. Johnson's fraudulent PPP loan application falsely stated that he was a barber who had earned nearly $100,000 in 2020.

In his fraudulent PPP loan application, Johnson instructed that the PPP money be deposited into a bank account that he controlled in Cedar Rapids. By 10:00 a.m. on the morning of the deposit of the fraudulently obtained government money into his account, Johnson withdrew $20,000 in cash. Johnson later admitted that he quickly withdrew the PPP loan money in cash because he owed child support and knew the money could be garnished from his account. Between 2021 and 2024, Johnson was in and out of prison in Indiana for failing to meet his child support obligations.

Johnson spent the remainder of the PPP loan money on fast food, at gas stations, and for home food delivery. In August 2021, Johnson submitted a false application to have the government loan forgiven, falsely stating that he had spent the $20,208 from the loan on "Payroll Costs." When federal agents asked Johnson why his PPP loan application had false statements about his purported income as a barber, Johnson replied he was just "shootin' [his] shot."

Johnson is a convicted felon with an extensive criminal history in Iowa and Indiana. Johnson's prior convictions include resisting law enforcement, theft, domestic-abuse assault, possession of controlled substances, and nonsupport of a dependent child.

Johnson was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Johnson was sentenced to 30 months' imprisonment. He was ordered to make $20,208 in restitution to the United States Small Business Administration. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Johnson was released on the bond previously set and is to surrender to the United States Marshal on May 19, 2026, at 10:00 a.m.

The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Federal Bureau of Investigation.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.plLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link..

The case file number is 25-CR-53-LTS.

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