The lawsuit alleges Golden Shovel Agency LLC never closed or reduced operations during the pandemic. Court filings assert that all independent contractors continued working remotely from their existing home offices around the world, with no interruption to business operations.

Most damningly, because Golden Shovel works primarily with government contracts, the complaint alleges the company’s revenue actually grew during the pandemic — directly contradicting the “economic necessity” certification required to receive Paycheck Protection Program funds.

“The PPP was a lifeline for businesses on the brink of collapse,” said former State Rep. Jeremy Munson (R-Lake Crystal), who currently serves as Chairman of the Republican Liberty Caucus of Minnesota and has called for House members to request a formal ethics investigation. “A company that got richer during COVID while claiming hardship to collect taxpayer relief is the definition of fraud.”

Foreign workers counted as “U.S. jobs”

The alleged fraud extends beyond false hardship claims. Court filings allege that Kresha’s firm reported up to 20 employees for PPP eligibility while later testifying under oath that it had “no employees,” only independent contractors — some working remotely from Mexico. Counting foreign contractors as “U.S. jobs” is a direct violation of PPP rules designed to preserve American employment.

A now-public October 20, 2021 Facebook post from a Golden Shovel staff member corroborates this structure. The post praised a company “summit” in Inver Grove Heights, MN, calling it the “first time most of us have met in person,” and thanked “Aaron Brossoit, Ron Kresha and John Marshall for making this summit happen.” It described staff flying in “from East and West coasts” and “from Mexico.”

The complaint also cites questionable rent and utility claims to related entities, suggesting potential self-dealing — particularly suspicious given the entirely remote workforce that never required physical office space during the pandemic.

The conflict: lawmaker oversight, private gain

Kresha chairs the House Education Finance Committee and serves as Senior Member of Commerce Finance while simultaneously serving as co-founder and CFO of Golden Shovel Agency. Ethics advocates argue that Minnesota Statute § 3.084, which bars sitting legislators from conflicts of interest involving public funds, demands legislative review of his conduct.

Criminal defense firm retained

In a development that suggests potential criminal exposure beyond the civil lawsuit, Kresha and Golden Shovel Agency have retained a Minnesota criminal defense attorney specializing in federal white-collar crime.

According to the law firm’s website, they have defended clients against federal charges including wire fraud, RICO/Racketeering, and felony theft — precisely the types of criminal allegations that could stem from the alleged PPP scheme if federal prosecutors choose to intervene in the False Claims Act case.

False Claims Act lawsuits, which allow private whistleblowers to sue on behalf of the government, frequently run parallel to criminal investigations. If the U.S. Attorney’s Office intervenes in the case or files separate criminal charges, Kresha could face both substantial civil penalties—potentially triple damages under the False Claims Act, which could exceed $1 million—and criminal prosecution carrying potential prison time.

The retention of a federal criminal defense specialist, rather than a civil litigation firm, has intensified speculation about the seriousness of the investigation and whether criminal prosecution may be imminent.

Retirement announced days after lawsuit surfaces

Days after the lawsuit surfaced, Rep. Kresha announced he will not seek re-election in 2026, citing personal reasons. The decision came within days of the lawsuit’s public disclosure and escalating calls for accountability from within his own party.

State Rep. Drew Roach (R-Farmington) declared: “If these accusations have merit, Rep. Ron Kresha must resign immediately!”

State Rep. Elliot Engen (R-White Bear Township), candidate for State Auditor, emphasized the stakes for public trust:

“A legislator who oversees finance committees cannot be entangled in a federal fraud case involving taxpayer funds,” Engen said. “It’s time for accountability and transparency from those entrusted with Minnesota’s finances.”

Rep. Roach underscored the ethical expectations voters have for those in public office:

“This is not about politics — it’s about honesty, integrity, and the rule of law,” Roach said. “We must hold our own accountable if we want Minnesotans to trust us again. Anything less is hypocrisy.”

Former Rep. Munson, also a 2022 candidate for Congress, said that voters are united in demanding reform.

“This is about rooting out fraud and corruption — something voters across the spectrum will rally behind,” Munson said. “They want to vote for someone who stops the fraud and theft of their hard-earned money.”

State Senator Nathan Wesenberg (R-Little Falls) also condemned the situation, urging his colleagues not to remain silent in the face of corruption.

“How can you look your children in the eyes and tell them you are fighting for their future if you are willing to stay silent about corruption?” Wesenberg said. “I will wash my hands of this and know that in the eyes of God, I am following His path.”

What we’re calling for:

* A full, independent investigation by the Minnesota Legislative Ethics Committee into Kresha’s business activities, PPP applications, and any lobbying or state-contract links

* A public hearing before the House Fraud Prevention and State Agency Oversight Policy Committee to restore transparency and accountability

* Immediate disclosure of all legislative votes, committee actions, and contract awards connected to Golden Shovel Agency during Kresha’s tenure

Why this matters

The Paycheck Protection Program was designed as emergency relief for struggling businesses facing closure. Allegations that a sitting lawmaker’s thriving company fabricated hardship to claim hundreds of thousands in taxpayer funds — while simultaneously overseeing state finance policy — strike at the heart of public trust.

Kresha’s sudden decision to step aside comes as the lawsuit gains traction, a criminal defense firm has been retained, and internal GOP pressure mounts — signaling potential fractures in party discipline and ethics enforcement.

The case remains pending in federal court. Representative Kresha has publicly denied wrongdoing, calling the allegations “politically motivated.” The federal government has not yet intervened, but the revelations have already triggered calls for heightened scrutiny.