2 Tax Preparers Hit With Federal Indictment After Allegedly Defrauding Over $65M In Pandemic Relief Funds – One America News Network

November 30, 2024 Blake Wolf US 0

WASHINGTON, DC - APRIL 07: A small sign indicates the headquarters of the Internal Revenue Service on April 07, 2023 in Washington, DC. The Treasury Department announced an $80 billion plan for the IRS to become a “digital first” tax collector and focus on improving customer service and cracking down on tax evasion by corporations and the wealthy. (Photo by Chip Somodevilla/Getty Images) — A small sign indicates the headquarters of the Internal Revenue Service on April 07, 2023 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)

OAN Staff Blake Wolf
8:40 AM – Saturday, November 30, 2024

Federal prosecutors have charged two tax preparers for allegedly defrauding $65 million from the federal government during the COVID-19 pandemic.

Renata Walton and Nicole Jones have been indicted on over 50 counts, including wire fraud, money laundering, preparing false tax returns and obstruction of justice, according to the U.S. Attorneys’ Office.

Prosecutors claimed that Walton and Jones fraudulently applied for tax credits for their clients under the Employee Retention Credit and the Sick and Family Leave Credit as their clients were not eligible to receive the tax credit.

The Sick and Family Leave Credit provides tax credit to employers for employee wages who were on leave due to illnesses or injuries stemming from vaccinations, and the Employee Retention Credit is a refundable tax credit provided to businesses with employees who were affected by the pandemic.

Walton owns R&B Tax Express out of Moscow, Tennessee, and despite her clients being ineligible for the return, received six-figure tax refunds which Walton and Jones received a cut of, according to the indictment.

Walton and Jones would then reportedly launder the money received from their clients through local banks.

“In total, Walton and Jones filed fraudulent claims seeking over $65 million dollars,” according to the press release.

Both Walton and Jones, originally from Olive Branch, Mississippi, pleaded not guilty and were released on $100,000 bond on Monday.

“If convicted of these offenses, Walton and Jones face a maximum penalty of 20 years for each count of wire fraud and conspiracy to commit wire fraud, 10 years for each count of money laundering, 3 years for each count of preparing false tax returns, and 1 year for each count of failing to file a tax return. Walton faces 20 years for the sole obstruction of justice count,” the press release continued.

The indictment added that Walton informed her clients not to speak with Internal Revenue Service agents, and continued to file false returns while knowing that they were being investigated by federal agents.

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