Las Vegas resident Candies Goode-McCoy entered a guilty plea to a conspiracy to defraud the United States by filing fraudulent COVID-19 employment tax credit claims.
In an effort to defraud the government during the peak of the pandemic, McCoy submitted false claims for tens of millions of dollars in tax credits, the U.S. Department of Justice (DOJ) disclosed on Friday.
Refunds of more than $98 million were sought in these claims, which were submitted on behalf of her companies and others. About $33 million of this was reimbursed by the IRS, which McCoy subsequently embezzled for her own benefit.
The DOJ claims that McCoy submitted approximately 1,227 fraudulent tax forms, claiming refundable tax credits intended to assist small businesses in keeping workers during the pandemic’s economic difficulties.
In order to keep companies running and employees employed during these difficult times, these credits were designed as a type of financial assistance. Businesses’ earnings for workers on pandemic-related sick or family leave were compensated by the credits. As part of the larger relief efforts, Congress also approved lower employment taxes for companies.
However, in order to unlawfully claim millions of tax credits, McCoy abused the system by filing false claims and misrepresenting her firms’ and others’ eligibility.
After receiving these monies, she spent it on gambling, upscale products, luxurious vacations, and luxury purchases like pricey cars.
The intentional deception involved in the misappropriation of these taxpayer-funded relief funds made the burden on federal resources intended to assist struggling small companies even worse.
The DOJ stressed that McCoy’s actions were a grave betrayal of public confidence and jeopardized the very relief initiatives meant to assist companies and their workers throughout the pandemic.
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In addition to taking money away from vital programs, her dishonest actions added to the government’s total financial burden during a period when millions of Americans and businesses were relying on that assistance to survive.
McCoy faces a maximum of 10 years in prison and heavy financial fines at her sentencing on February 23. After completing her sentence, she might also have to spend time under supervision.
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The case emphasizes how crucial it is to uphold the integrity of relief initiatives intended to assist people and companies during times of national emergency.
The action by the Justice Department is a reminder that deceptive practices involving government assistance programs will not be accepted, and those who take advantage of them for their own benefit will suffer dire repercussions.
Reference: Department of Justice (.gov)
