Arizona Man Pleas Convicted of COVID-19 Fraud and Filing a False IRS Claim
Roy L. Layne, a resident of Arizona, pleaded guilty yesterday to fraud and filing a false refund claim with the Internal Revenue Service (IRS). Layne admitted to fraudulently receiving more than $850,000 from the IRS and the US Small Business Administration (SBA) for various COVID-19 assistance programs.
According to court documents and statements made in court, Layne engaged in fraudulent activities in 2020 and 2021 by submitting false applications on behalf of several fictitious businesses to obtain loans from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These federal programs were established to provide financial assistance to Americans affected by the economic impact of the COVID-19 pandemic.
Layne lied that his fake businesses employed dozens of people and brought in hundreds of thousands of dollars in gross receipts. To support these fraudulent claims and create the appearance of legitimate business operations, Layne prepared business and employment tax forms, filed them with the IRS and sent them to the SBA. As a result, Layne received more than $300,000 in loans that he was not entitled to.
In addition to his fraudulent loan applications, Layne filed false tax returns with the IRS in 2022, claiming nearly $7.5 million in refunds. The IRS paid nearly $550,000 in settlement of these fraudulent refund claims.
Layne is scheduled to be sentenced on February 3, 2025. He faces a maximum sentence of 30 years on each count of fraud and five years on the forgery count. In addition to prison terms, Layne could face a period of supervised release, restitution, and monetary penalties. A district court judge will decide the final sentence after considering the US Sentencing Guidelines and other legal factors.
The announcement of Layne’s guilty plea was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division and U.S. Attorney Gary M. Restaino for the State of Arizona.
The investigation into Layne’s activities was conducted by IRS Criminal Investigations and the FBI. The case is being prosecuted by Attorney Matthew R. Hoffman of the Justice Department’s Tax Division and Assistant United States Attorney Mary Sue Feldmeier for the State of Arizona.
