Former Armstrong Man Pleads Guilty In Paycheck Protection Program Scheme

Tue 2-16-2021

(Sioux City)-- A man who participated in a scheme to defraud the United States out of Paycheck Protection Program and Economic Injury Disaster Loans, or EIDL funds, and conspired to launder the $1.2 million in funds he received, has pled guilty in U.S. District Court. 

56-year-old Donald Trosin of Champlin, Minnesota, formerly of Armstrong, was charged with one count of major fraud against the United States and one count of money laundering. 

The U.S. Attorney's Office says Trosin admitted at a plea hearing he submitted 20 applications to the Small Business Administration in his name and that of another person. The application falsely stated Trosin had 120 employees on his payroll and over $5 million in payroll expenses, when in reality, Trosin didn't operate a business at all. 

Trosin admitted that after receiving the funds through banks in Minnesota and northwest Iowa, he withdrew and wired proceeds from the scheme to other individuals in other states. 

Sentencing is pending completion of a pre-sentence report. He faces up to 20 years in jail and more than five million dollars in fines.

Trosin is currently free on bond.