Arizona man pleads guilty to COVID-19 financial relief fraud and fake IRS claims totaling $850K
Aug 30, 2024, 4:15 AM
An Arizona man pleaded guilty on Wednesday to defrauding the U.S. government of $850,000. (Pexels Photo)
(Pexels Photo)
PHOENIX – An Arizona man pleaded guilty on Wednesday after receiving $850,000 in COVID-19 financial assistance and IRS refunds for fake businesses, according to authorities.
Between 2020 and 2021, Roy L. Layne submitted applications for fake businesses in order to receive money from two federal programs aimed at assisting Americans dealing with financial strife from the COVID-19 pandemic.
Layne applied to the U..S. Small Business Administration (SBA) for loans from the Paycheck Protection Program and the Economic Disaster Loan program.
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To make the businesses look legitimate he would claim they made hundreds of thousands of dollars and had dozens of employees. Layne fabricated false business records and employment tax forms that he provided to the SBA and IRS.
Layne requested and received $300,000 in loans.
In 2022, Layne filed false returns to the IRS, seeking around $7.5 million to which he was paid $550,000.
Sentencing is scheduled for Feb. 3, 2025. Layne faces a maximum penalty of 30 years in prison for wire fraud and five years for the false claim charge. He could also receive a period of supervised release, restitution and monetary penalties.
