Current and Former IRS Employees Charged in COVID Relief Fraud

WASHINGTON – Five current and former employees of the Internal Revenue Service (IRS) were the subjects of an investigation by the U.S. Department of Justice (DOJ). The DOJ alleges they participated in schemes to defraud the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The IRS employees charged in COVID relief fraud collectively sought more than one million dollars, which they allegedly spent on luxury goods, including Gucci clothes, a Mercedes-Benz, and a trip to Las Vegas.

Five Employees Charged with Defrauding the CARES Act

Five employees residing in Tennessee and Mississippi who worked (or continue to work) for the IRS face charges they illegally defrauded the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP). The government created the CARES Act to provide financial relief to small businesses affected by the COVID-19 pandemic.

According to court documents, the five bad actors allegedly filed multiple fraudulent loan applications, seeking more than one million dollars. The charges also allege the five employees spent the funds lavishly on designer clothes, luxury cars, gambling trips, and jewelry.

The DOJ Alleges Multiple Counts of Wire Fraud and Money Laundering

The five, all from Tennessee and Mississippi, were charged with various counts of wire fraud and/or money laundering. These charges stem from allegedly submitting multiple applications to the EIDL and PPP programs where they received illegal funds of anywhere between $16,000 and $171,000. 

The charges allege that the funds were spent on extravagant personal items like Las Vega trips, expensive jewelry, a Mercedes Benz, luxury designer clothing, and other personal goods.

The five individuals charged are alleged to have taken advantage of government programs designed to help honest businesses struggling after the pandemic. They face up to 20 years in prison for each count of wire fraud and ten years for money laundering. 

Contact Levy & Associates Today

If you need help with back taxes, don’t wait until the IRS garnishes your wages. Instead, call Levy & Associates at 1(800) TAX-LEVY (829-5389) to schedule your free consultation with our financial experts.

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Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.

There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.