Timothy T. Duax U.S. Attorney | U.S. Attorney for the Northern District of Iowa
A Cedar Rapids man has been sentenced to nearly three years in federal prison for laundering funds obtained through a fraudulent Paycheck Protection Program (PPP) loan during the COVID-19 pandemic. Don Edward Williams, Jr., 32, pleaded guilty on August 28, 2025, to one count of engaging in a monetary transaction with proceeds from unlawful activity.
According to court documents and his plea agreement, Williams secured $20,833 via a PPP loan in May 2021 by falsely claiming he had earned over $100,000 in gross income from a construction business in 2019. A participating lender deposited the funds into an account controlled by Williams at a Cedar Rapids credit union. By early that morning, Williams withdrew $20,000 in cash and spent the remainder over the next three days at local businesses.
In March 2022, Williams submitted an application for PPP loan forgiveness to the Small Business Administration (SBA), falsely stating that he used the money for payroll expenses. The SBA approved his request and forgave the loan.
When questioned by federal agents in January 2025 about the PPP loan, Williams initially denied knowledge of both the loan and related withdrawals before eventually admitting he had withdrawn the funds.
Williams' criminal record includes 18 prior adult convictions—11 of which occurred while on probation or parole—and four domestic abuse assault convictions. One incident from 2024 involved physical violence against his girlfriend and resulted in injuries to both her and an officer responding to the scene. Other state court convictions include illegal firearms possession, interference with official acts, attempted eluding law enforcement, false identification use, theft offenses, drug charges, and burglary.
While out on release pending trial for his federal case, Williams participated in another scheme involving fraudulent vehicle registration intended to help a barred felon continue driving despite legal restrictions. This conduct led to revocation of his bond after it was discovered.
Williams received his sentence from United States District Court Chief Judge C.J. Williams: “He was ordered to make $20,833 in restitution to the SBA. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.” Williams remains in U.S. Marshal custody until transfer to a federal facility.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek following investigations by both the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation division.
