DETROIT, MICH. — A Metro Detroit business owner has been federally indicted on charges of fraud, identity theft, and money laundering in connection with COVID-19 relief programs, according to an announcement from the U.S. District Court for the Eastern District of Michigan.
Karl A. Fultz, owner of Wheel Effects, Karl Fultz Music, and Media Planet, faces one count of wire fraud, five counts of aggravated identity theft, and three counts of transactional money laundering, stemming from alleged fraudulent applications submitted during 2020 and 2021 in Oakland and Wayne Counties.
Fultz is accused of submitting false documents to obtain funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program—two federal initiatives launched during the COVID-19 pandemic to assist struggling businesses.
According to the federal indictment, Fultz falsely claimed in an August 2020 PPP application that Wheel Effects employed 41 people with a monthly payroll of $346,676, when the business had few or no actual employees. Investigators allege that he used fake W-2 forms, forged tax records, and unauthorized Social Security numbers to support the loan request.
Once received, the funds were allegedly quickly spent, wired, or redirected to other accounts under Fultz’s control.
Court documents also detail that Fultz filed two EIDL applications under Karl Fultz Music, falsely claiming five employees in July 2020 and 12 employees in June 2021. Both applications were denied by the Small Business Administration (SBA).
Fultz’s trial is expected to begin in July 2025.
If convicted, Fultz faces substantial prison time and financial penalties. The indictment underscores continued federal efforts to crack down on pandemic-era financial fraud.
