Tennessee Man Pleads Guilty to COVID-19 Employee Retention Credit Fraud Scheme
Summary
A Justice Department release reports that Ryan Glidewell, a Tennessee man, pleaded guilty to conspiring to commit wire and mail fraud, aiding and assisting in the preparation of a false tax return, and money laundering in a scheme to claim refunds based on false COVID-19 employment tax credits. According to the release, Glidewell and co-conspirators created phony businesses with no employees or operations to falsely claim the Employee Retention Credit and paid Sick and Family Leave Credit, and Glidewell directed the refunds to be mailed to addresses that Glidewell and co-conspirators controlled. The false returns claimed over $3.4 million in tax refunds, of which the IRS paid $1.8 million. Sentencing is set for Nov. 12; the maximum penalties are 20 years for the fraud conspiracy, 10 years for money laundering and three years for the false-return count.
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Full text
A Tennessee man pleaded guilty today to conspiring to commit wire and mail fraud, aiding and assisting in the preparation of a false tax return, and money laundering, for his role in a scheme to claim refunds based on false COVID-19 employment tax credits. The following is according to court documents and statements made in court: Ryan Glidewell conspired with others to file false tax returns seeking refunds based on the Employee Retention Credit and paid Sick and Family Leave Credit, both of which were created by Congress to aid struggling businesses during the COVID-19 global pandemic. Glidewell and co-conspirators created phony businesses, which lacked any employees or operations, for the sole purpose of falsely claiming the credits. Glidewell filed numerous false tax returns for those businesses and directed the tax refunds to be mailed to addresses he and co-conspirators controlled. In total, the false returns claimed over $3.4 million in tax refunds, of which the IRS paid $1.8 million. Glidewell is set to be sentenced on Nov. 12. He faces a maximum penalty of 20 years in prison for conspiring to commit mail and wire fraud, a maximum penalty of 10 years in prison for money laundering, and a maximum penalty of three years in prison for aiding and assisting in the filing of a false tax return. 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 Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement. IRS Criminal Investigation and the U.S. Secret Service investigated the case. Trial Attorney Zachary A. Cobb of the Tax Division and Assistant U.S. Attorney Mac Heavener for the Eastern District of Tennessee are prosecuting the case.
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- www.justice.gov