Jedrek Upton, a 45-year-old resident of Lincoln, California, has pleaded guilty to wire fraud and money laundering charges related to COVID-19 relief funds. The announcement was made by U.S. Attorney Eric Grant.
Court documents reveal that from January 2021 to May 2022, Upton submitted multiple applications for COVID-19 disaster relief loans on behalf of his businesses. He provided false information about employee numbers and payroll figures and claimed he would use the funds to address economic harm caused by the pandemic. Upton also included falsified IRS documents with his applications.
Investigators found that some of Upton’s businesses had no employees or payroll. Instead of using the funds for legitimate business expenses, he spent much of the nearly $1.5 million in loans on personal items. According to authorities, he paid off personal credit cards, transferred money to others, leased luxury vehicles such as a Ferrari and a Lamborghini, and made a significant down payment on a $2.7 million property spanning 10 acres.
A large portion of these loans was forgiven after Upton falsely stated they were used for payroll purposes.
As part of his plea agreement, Upton will forfeit his interest in the property purchased with the loan proceeds and pay nearly $1.5 million in restitution to the United States.
The case was investigated by IRS Criminal Investigation, and Assistant U.S. Attorney Dhruv M. Sharma is handling prosecution.
Upton is scheduled for sentencing before Senior U.S. District Judge John A. Mendez on March 24, 2026. He faces up to 20 years in prison and a $250,000 fine for wire fraud, as well as up to 10 years in prison and a $250,000 fine for money laundering. The final sentence will be determined by the court based on statutory factors and federal Sentencing Guidelines.
