Arizona Man Pleads Guilty to COVID-19 Relief Fraud and Filing a False Claim with the IRS
Summary
A Justice Department release reporting that Roy L. Layne of Arizona pleaded guilty to wire fraud and filing a false refund claim with the IRS. According to court documents, in 2020 and 2021 Layne submitted false PPP and EIDL applications to the SBA for several bogus businesses, claiming dozens of employees and hundreds of thousands in gross receipts, and created false business and employment tax forms that were filed with the IRS and submitted to the SBA. Layne requested and received over $300,000 in loans. In 2022 Layne filed false returns that sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000. Sentencing is scheduled for Feb. 3, 2025; the release lists a maximum of 30 years in prison for each wire fraud charge and five years for the false claim charge.
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Full text
An Arizona man pleaded guilty yesterday to wire fraud and filing a false refund claim with the IRS. According to court documents and statements made in court, in 2020 and 2021, Roy L. Layne submitted false applications on behalf of several bogus businesses to the U.S. Small Business Administration (SBA) for loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two federal programs created to provide financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. In those applications, Layne claimed that 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. In addition, in 2022, Layne filed false returns with the IRS that sought nearly $7.5 million in refunds, of which the IRS paid approximately $550,000. Layne is scheduled to be sentenced on Feb. 3, 2025. He faces a maximum penalty of 30 years in prison for each wire fraud charge and five years for the false claim charge. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Gary M. Restaino for the District of Arizona made the announcement. IRS Criminal Investigations and the FBI are investigating the case. Trial Attorney Matthew R. Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.
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- www.justice.gov