An Arizona man has pleaded guilty to defrauding the IRS and the U.S. Small Business Administration (SBA).
Roy L. Layne submitted the guilty plea after the court documentation showed that he knowingly defrauded the United States government across a financial year.
The Justice Department’s Tax Division made the announcement in connection with the District of Arizona. IRS Criminal Investigations and the FBI are investigating the case.
Arizona man pleads guilty to Covid-19 fraud
Layne reportedly pleaded guilty after he was found to have taken several loans out from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. Both of these programs were linked to the recovery of the United States economy due to the strain that Covid-19 placed on people.
Layne also filed false returns with the IRS in 2022, which sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000.
The court report and statements showed that he claimed the “businesses had dozens of employees and earned hundreds of thousands in gross receipts. To support his false claims and to create the appearance of genuine business activity, Layne created false business and employment tax forms that he filed with the IRS and submitted to the SBA. In total, Layne requested and received over $300,000 in loans to which he was not entitled.”
Layne faces thirty years behind bars for each wire fraud charge and five years for the false claim charge. He is set to be sentenced on Feb. 3, 2025, and will be subject to a period of supervised release, restitution, and monetary penalties.
In related news, Three men from Florida have pleaded guilty to an elaborate tax refund scheme that attempted to defraud the IRS.
Christopher Johnson and Jasen Harvey pleaded guilty to conspiring to defraud the United States. This added to the guilty plea of Arthur Grimes on April 2 to obstruct the IRS in connection with the same tax scheme.
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