Arizona man gets 4 years in prison for pandemic loan and tax fraud totaling close to $1 million

PHOENIX — An Arizona man was sentenced to four years in prison on Tuesday for fraudulently obtaining nearly $1 million in pandemic relief and tax refunds, according to authorities.

Roy Layne, 44, of St. David, Arizona pleaded guilty to two counts of wire fraud and one count of filing a false claim, according to a Thursday news release from the U.S. Attorney’s Office for the District of Arizona.

Additionally, Layne was ordered to be under three years of supervised release after serving his prison sentence.

Why was Arizona man sentenced to prison for committing fraud?

Layne claimed to be the owner of several businesses, according to court documents.

He filed paperwork with the IRS and applied for a business license in Tucson, according to prosectors. He went on to open business bank accounts.

In April 2020, Layne put in an application with the U.S. Small Business Administration.

He claimed to own a wholesale company with 17 employees that annually brought in more than a half-million dollars in profit, according to prosecutors.

In 2021, he applied for a Paycheck Protection Act loan, which was part of a COVID-19 relief program designed to keep small businesses afloat.

Layne raked in more than $300,000 in pandemic relief funds that he was not entitled to receive, according to authorities.

Ultimately, he claimed more than $7.4 million in fraudulent tax refunds and was paid more than $590,000 by the IRS, accorded to prosecutors.

He filed the fake returns using other people’s identities and personal information.

Layne was also ordered to pay close to $857,000 in restitution to the U.S.

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