Southern Indiana man sentenced to federal prison for stealing nearly $600,000 through multiple fraud schemes

Date: April 24, 2026

Contact: newsroom@ci.irs.gov

New Albany – Joseph M. Merk of Crandall, Indiana, has been sentenced to 4.5 years in federal prison, followed by 2 years of supervised release, after pleading guilty to four counts of wire fraud, one count of bank fraud, one count of aggravated identity theft, and two counts of tax evasion. Merk was also ordered to pay a total of $492,229.14 in restitution.

According to court documents, Merk engaged in a yearslong pattern of fraud—including PPP loan fraud, identity theft, business loan fraud, bank fraud, and tax evasion—resulting in a total loss of $599,439.03.

Merk’s schemes are broken down as follows:

PPP loan fraud

From May 2020 to May 2021, Merk submitted six fraudulent Paycheck Protection Program applications for four entities: Donut Frenzy LLC, The Donut Shop LLC, Merk Logging LLC, and Merk Family Farms LLC. None of the businesses were eligible for PPP funds. Merk used falsified information and counterfeit documents to obtain $157,462, which he spent on personal expenses.

Identity theft and wire fraud

Between September and December 2023, Merk used the names, dates of birth, and Social Security numbers of two victims, L.P. and A.P., to open bank accounts and apply for three business loans using fabricated companies (“[L.P.’s surname] Automotive” and “Merk Automotive”). He submitted counterfeit bank statements and misrepresented his identity. Lenders in Pennsylvania, New York, and Connecticut approved the applications, disbursing a total of $183,260 into Merk’s accounts.

Between December 2023 and June 2025, Merk submitted 14 additional fraudulent business loan applications. All the applications involved fabricated businesses, and, in some instances, stolen identities. Through these loans, he received an additional $245,796 in fraud proceeds.

Bank fraud

In 2021, Merk made 93 debit card purchases for a luxury vacation to Hawaii, totaling $18,405.41. Among the disputed charges were several transactions at a Four Seasons resort in Maui. He later falsely disputed the charges as unauthorized. His bank approved 85 of the disputes and credited him approximately $11,180.63.

Tax evasion

Merk failed to report approximately $209,992 in income for tax years 2017 through 2021, thereby causing a tax loss of $71,754. For each tax year, he did affirmative acts to evade assessment of tax, including preparing and signing false tax returns, which were submitted to the Internal Revenue Service.

In total, Merk’s fraudulent conduct involved nine identity theft victims, seventeen business victims, and two governmental victims. One of the identity theft victims was sued by a lender after Merk failed to repay a fraudulent loan obtained in the victim’s name, resulting in a lien being placed on the victim’s bank account.

“Merk treated fraud as a way of life. He stole pandemic relief funds, hijacked innocent people’s identities, lied to banks, and cheated on his taxes. Fraud of this magnitude doesn’t just hurt institutions, it disrupts lives, damages credit, and burdens taxpayers” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “This prosecution makes clear that persistent, brazen fraud will be met with decisive federal action.”

“Through multiple fraudulent schemes, the defendant exploited trust for personal gain,” said FBI Indianapolis Special Agent in Charge Timothy J. O’Malley. “The FBI and our partners will not hesitate to pursue those who target individuals and businesses and remain committed to protecting our communities from financial crime.”

IRS-Criminal Investigation and FBI Indianapolis investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker.

U.S. Attorney Wheeler thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.