Watchdogs and activists demand answers after financial records clash with Rep. Kresha’s sworn testimony, leading to concern about his roles on key finance committees.

ST. PAUL, MN, July 03, 2025 /24-7PressRelease/ — The Minnesota House Fraud Prevention and State Agency Oversight Policy Committee has received documentation raising questions about potential inconsistencies in federal Paycheck Protection Program (PPP) loan applications submitted by State Representative Ron Kresha (R–10A) and his company Golden Shovel Agency LLC, according to the non-profit watchdog Action 4 Liberty.

Rep. Kresha’s roles on key House finance committees — Commerce and Education Finance — raise potential conflict of interest concerns. Advocacy groups argue that public officials in such positions must uphold the highest standards of transparency, especially as these committees oversee legislation involving state-funded grant programs. These allegations warrant a thorough review to ensure no conflicts exist.

According to a sworn deposition given by Rep. Kresha on November 24, 2020, in connection with a civil lawsuit, Kresha testified under oath that his company had no employees and instead worked with approximately 15 independent contractors. Despite that testimony, PPP loan applications submitted on behalf of Golden Shovel Agency in April 2020 and March 2021 reported 17 and 20 employees, respectively.

Adding to the controversy, the timeline reveals that Kresha received his first PPP loan in 2020 and voted against state-level COVID relief legislation shortly afterward, before receiving his second PPP loan in 2021. Critics say this represents a stark ethical contradiction and conflict of interest.

Golden Shovel Agency received over $320,000 in federal PPP funds across the two loans, both of which were forgiven in full. The first application listed $123,200 for payroll, $16,400 for rent, and $15,000 for utilities. The second application reported $164,697 for payroll, $1 for utilities, and no rent. Kresha also testified that Golden Shovel operates from a building he personally owns and did not reference any rental agreements during sworn questioning.

Federal guidelines issued by the U.S. Department of Treasury state that independent contractors cannot be included in employee counts on PPP loan applications — a safeguard designed to prevent misuse of federal funds.

The SBA’s PPP loan application explicitly required businesses to certify accuracy regarding employment numbers, payroll costs, rent, and utility expenses. Misrepresenting these details is specifically targeted as fraud by the Department of Justice (DOJ). The statute of limitations to prosecute PPP loan fraud was extended in 2022 to 10 years.

Watchdog analysts say the documents indicate a discrepancy between Ron Kresha’s sworn testimony (implying minimal or no rent/utility expenses and indicating no rented office locations) and the expenses listed on the PPP loan applications (significant rental and utility payments declared). This discrepancy highlights potential issues regarding the accuracy of financial representations made by Golden Shovel Agency LLC under Kresha’s financial leadership.

These revelations surface just as state leaders debate the future of oversight in Minnesota. The House Fraud Prevention and State Agency Oversight Policy Committee was formed in the wake of scandals involving Feeding Our Future and autism therapy centers.

Rep. Jim Nash (R–Waconia), one of the movement’s leading voices and an author of key anti-fraud legislation, summed up the urgency with a note he carried into the session: **”Fraud equals bad.“**

“It’s easy to say fraud is bad — that’s a bumper sticker,” said Rep. Emma Greenman (DFL–63B), who also serves on the committee. “Protecting taxpayers requires real scrutiny and accountability.”

That scrutiny is now being tested. The committee must decide whether to investigate one of its own House colleagues for allegedly inaccurate or misleading reporting of taxpayer-backed federal funds, critics contend. Critics warn that failing to act would undermine the committee’s credibility at a time when public confidence in government spending is already shaken.

The allegations first gained local attention when evidence related to Golden Shovel Agency’s PPP loan filings—and Rep. Ron Kresha’s sworn testimony—was submitted to local authorities. The Little Falls Police Department confirmed receipt of the initial report and stated that the matter was documented and referred to the FBI.

The matter was then brought before a Morrison County GOP meeting on June 19, where local Republicans and conservative activists presented the same evidence. During that meeting, Rep. Isaac Schultz (R–10B)—who sits on the House Fraud Prevention and State Agency Oversight Policy Committee—was formally given the materials for review.

Rep. Kresha was invited multiple times to the June 19 meeting but did not attend, according to the Morrison County Republican Party.

On June 25, 2025, Minnesota watchdog organization Action 4 Liberty published an article calling for a full investigation, citing concerns about loan application accuracy and possible conflicts of interest involving an elected official. Action 4 Liberty is a Minnesota-based nonprofit watchdog organization committed to promoting transparency, fiscal responsibility, and ethical government conduct.

The House Fraud Prevention and State Agency Oversight Policy Committee, which has concluded its first session, has yet to confirm whether a formal inquiry into Rep. Kresha’s case has begun. The committee, formed in the wake of large-scale fraud uncovered in state-run grant programs, has emphasized bipartisan support for stricter audit standards and financial transparency.

This case highlights why citizen-led watchdog efforts are essential. In an era of record federal spending and declining public trust, the public depends not just on government institutions, but on the vigilance of informed citizens, the press, and grassroots organizations to shine light where accountability lags.

Rep. Kresha has not issued a formal public statement beyond an automated email promising a reply “as soon as possible.” As of this release, no known formal charges have been filed against Rep. Kresha.

The federal government has already taken action against Minnesotans who exploited the Paycheck Protection Program for personal gain. In January 2025, the U.S. Department of Justice reported that a Saint Paul man was sentenced to one year and one day in prison after pleading guilty to wire fraud. He admitted to fabricating payroll records and misusing $530,567 in PPP funds. He self-reported the fraud, cooperated with investigators, and was ordered to pay $555,292.88 in restitution.

“This case is another example of someone who stole benefits intended for struggling taxpayers and used them for personal gain,” said United States Attorney Matt Kirsch. “The difference in this case is that the defendant voluntarily took responsibility, and that action is reflected in his sentence. I encourage others to self-report COVID-19 related fraud.”

Source documentation available upon request.

For additional information or documentation, visit:

Action 4 Liberty – “Legislator on Fraud Cmte. Presented Evidence of PPP Loan Fraud by Rep. Ron Kresha“

FOX 9 Minneapolis – “Minnesota’s new fraud committee has mixed reviews in first year“

U.S. Department of Justice. (2025, January 14). Minnesota man sentenced after self-reporting COVID-19 fraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

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