Five IRS workers, both current and past, have been accused of planning to steal hundreds of thousands of dollars in COVID relief.
The federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs, which provided financial assistance to small business owners and people affected by the COVID pandemic, were hacked, according to the Department of Justice, which charged each of the five people with separate counts of wire fraud. The amount of the illegal loans varied from $11,000 to over $170,000.
“These individuals – acting out of pure greed – abused their positions by taking government funds meant for citizens and businesses who desperately needed it,” U.S. Attorney for the Western District of Tennessee, Kevin G. Ritz, said in a statement. “I thank our law enforcement partners for rooting out this fraud. Our office will not hesitate to pursue and charge individuals who steal from our nation’s taxpayers.”
The first suspect worked for the IRS in the Human Capital Office as a Program Evaluation and Risk Analyst. The defendant submitted four false EIDL applications, requesting more than $500,000 in funding, according to the criminal accusation; he ultimately obtained $171,400 in funding. The accused reportedly bought a Mercedes-Benz with the aid money and invested the remaining sum in a private investment account. Two counts of wire fraud and two further counts of money laundering are brought against him.
The second suspect was employed by the IRS as a contact in the department of the Wage and Investment Service Centers. She allegedly applied for various PPP and EIDL loans totaling at least $32,500, and she reportedly obtained monies totaling $11,500. She used the money to pay for manicures, massages, and designer clothes. The Tennessee Department of Labor also provided her with about $16,050 in bogus unemployment insurance benefits. There are three counts of wire fraud against her.
The third suspect was an Information Technology Management and Program Assistant. The DOJ claims that she submitted EIDL applications for a fashion company, asking for more than $300,000 in loans and receiving only $28,900. She reportedly used the borrowed money to pay on a trip to Las Vegas and clothing from Gucci. On Tuesday, she admitted guilt to one count of wire fraud.
The fourth suspect was employed by the Wage and Investment Service Centers Department as a Contact Representative. He allegedly requested more over $113,000 in four PPP and EIDL loans, but only received $66,666. He allegedly used the cash to buy a Gucci bag and other accessories. In August, he entered a guilty plea to one count of wire fraud.
The fifth suspect was employed by the Human Capital Office as a Lead Management and Program Assistant. She allegedly requested more than $133,000 in loans through four PPP and EIDL loan applications; she got more than $123,000. She reportedly used the money to purchase jewelry and travel to Las Vegas. In July, she also entered a guilty plea to one count of wire fraud.
The maximum sentence for each offense of wire fraud is 20 years in jail. Additionally, the first suspect may spend up to 10 years in jail if found guilty of each money laundering offense.
The five IRS officers are only the most recent among a long list of individuals convicted in 2022 alone of millions of dollars’ worth of COVID-related fraud. So far this year, there have been a couple of New Jersey residents, a set of twin brothers from Maryland, hundreds of foreigners from Nigeria, Pakistan, Mexico, and India, a life-sentenced killer, and an illegal alien.
