Tax Preparers Charged in Scheme to Defraud Covid Relief of $65 Million – The New York Times

Two Mississippi tax officials used multiple schemes to defraud $65 million from a program designed to help businesses survive during the coronavirus pandemic, federal prosecutors announced this week.

The authors, Renata Walton, 44, and Nicole Jones, 36, both of Olive Branch, Michigan, are charged with 50 counts of wire fraud, money laundering, filing false tax returns, and obstruction of justice. He was charged with the above crimes. The U.S. Attorney's Office for the Western District of Tennessee announced Wednesday..

Both men pleaded not guilty and were released on $100,000 bail each, according to court documents.

Mr. Walton owned R&B Tax Express in Moscow, Tenn., and prepared tax returns there with Mr. Jones.

According to court records, federal prosecutors said the two women contacted small business customers and asked if they were interested in pandemic-related grants. Officials said the women will apply for pandemic-related tax credits on behalf of their clients, even though they are not eligible for the funds.

Most of the money came from the Employee Retention Credit and Sick and Family Leave Credit programs, according to court documents.

The Employee Retention Credit Program provides thousands of dollars per employee if companies can prove they are continuing to pay their employees despite the pandemic's devastation to their business. Ta. The Sick and Family Leave Credit provided tax relief to employers who voluntarily provided paid sick and family leave to workers if they needed to take time off because of the pandemic.