Minnesota man pleads guilty in paycheck protection fraud

A 56-year-old Minnesota man has pleaded guilty to receiving more than $1.2 million in loans in a fraud scheme involving federal programs offering help for coronavirus-related losses.

Donald Franklin Trosin, from Champlin, Minnesota, pleaded guilty Tuesday in federal court in Sioux City, Iowa, to major fraud against the U.S. and money laundering conspiracy.

Federal prosecutors said Trosin conspired to launder funds from loans he received from banks in northwest Iowa and Minnesota.

Trosin admitted he defrauded the banks out of Paycheck Protection Program and Economic Injury Disaster Loans. After receiving the loans, he wired the money to other people in different states.