Founder Of “Leadership Training” Company And Co-Conspirator Found Guilty Of Defrauding COVID Relief Programs

Orlando, Florida – United States Attorney Gregory W. Kehoe announces that a federal jury found Shawn Michael Simmerer (49, Florida) and Seth Downes (30, Michigan) guilty of conspiracy to commit wire fraud and wire fraud in connection with a scheme to defraud the Paycheck Protection Program (“PPP”). Simmerer was also found guilty of four counts of submitting false claims to the IRS, related to fraudulent Employee Retention Credits and Sick and Family Leave Credits. Simmerer and Downes face a maximum penalty of 20 years in federal prison on each wire fraud count, and Simmerer faces a maximum penalty of 5 years on each false claim count. Their sentencing hearing is scheduled for February 17, 2026.

Simmerer and Downes were indicted on February 28, 2024. A superseding indictment was later returned on January 29, 2025. 

According to the testimony and evidence presented at trial, starting in April 2020, the defendants participated in a scheme to fraudulently obtain PPP proceeds and to then live off the proceeds. The scheme involved the submission of PPP loan applications on behalf of multiple companies, including two applications on behalf of “Your 10 Life Foundation,” a “leadership training” company founded by Simmerer. These applications falsely claimed employees and payroll that did not exist. The applications also attached phony payroll records and tax returns that were either never filed, or differed from the versions filed, with the IRS. Through these applications, the defendants were able to obtain over $344,000 in PPP loans. They were later able to have the loans forgiven through a series of loan forgiveness applications, which also included false and fraudulent information.

In addition, Simmerer prepared and submitted tax returns on behalf of Your 10 Life Foundation, which claimed hundreds of thousands of dollars of COVID-related tax credits. The evidence at trial showed that these tax credits, Employee Retention Credits and Sick and Family Leave Credits, were fraudulent. Based on these fraudulent credits, Simmerer was ultimately able to obtain over $680,000 in refunds from the IRS.

“These defendants didn’t just cheat the system—they stole from the American people,” said Ron Loecker, Special Agent in Charge of IRS Criminal Investigation, Florida Field Office. “Their scheme was built on lies, but thanks to the relentless work of IRS Criminal Investigation and our law enforcement partners justice caught up with them. We will continue to follow the money and hold fraudsters accountable—no matter how complex the scheme.”

“These two individuals engineered a multi-pronged fraud scheme that included exploiting the Paycheck Protection Program to steal valuable funds meant for small businesses that depended on them,” said Caroline O’Brien-Buster, the Special Agent in Charge of the U.S. Secret Service’s Orlando Field Office. “The U.S. Secret Service and our partners remain steadfast in our commitment to ensuring fraudsters like Mr. Simmerer and Mr. Downes are held accountable for their crimes.”

This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Robert D. Sowell and Noah P. Dorman.