To copy everything in a folder hierarchie
Copy-Item $source $dest -Recurse -Force
To copy the hierarchie you can try:
$source = "C:\ProdData"
$dest = "C:\TestData"
Copy-Item $source $dest -Filter {PSIsContainer} -Recurse -Force
To flatten a file structure you can try:
$source = "C:\ProdData"
$dest = "C:\TestData"
New-Item $dest -type directory
Get-ChildItem $source -Recurse | `
Where-Object { $_.PSIsContainer -eq $False } | `
ForEach-Object {Copy-Item -Path $_.Fullname -Destination $dest -Force}
Good luck!