Derry Duo Drain Pandemic Funds: Tammy Dodge Gets Jail Time

CONCORD, NH – A brazen scheme to siphon off pandemic relief funds has landed Tammy Dodge, 44, of former Derry, NH, in federal prison. Dodge was sentenced today to 12 months and 1 day behind bars, plus two years of supervised release, after pleading guilty to one count of bank fraud on March 4, 2024. The case, prosecuted by Assistant U.S. Attorney Alexander S. Chen, reveals a calculated effort to exploit the COVID-19 crisis for personal gain.

The scheme, orchestrated with her husband, David Dodge, involved submitting a barrage of fraudulent applications for Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDLs), and pandemic relief grants from both New Hampshire and Massachusetts. The couple claimed to operate multiple businesses – Teacher Tammy (a/k/a Teacher Tammy’s), Optimized Operations, and Business Done Right – but authorities found these were shell companies with no legitimate business activity. They even stooped to using the Social Security Number of a minor child to secure an Employer Identification Number for a fictitious company, “Consulting Services.”

U.S. Attorney Jane E. Young minced no words, stating, “The defendant, along with her husband, submitted numerous fraudulent applications for COVID relief funds intended for individuals and businesses who suffered financial harm as a result of the pandemic.” Young emphasized the damage caused by their actions, stating, “The defendant’s fraud not only resulted in the theft of hundreds of thousands of taxpayer dollars, but her actions also undermined the public’s confidence in pandemic relief programs.”

The Dodges’ fraudulent applications were bolstered by a mountain of fabricated documents. On May 6, 2020, Tammy Dodge submitted a PPP loan application for Teacher Tammy, complete with a forged tax filing claiming $132,000 in employee wages in 2019 – a blatant lie. A fake Certificate of Formation, purportedly from the New Hampshire Secretary of State, further solidified the deception. While many applications were flagged by lenders, the Dodges still managed to illegally obtain $219,323.34.

The ill-gotten gains weren’t invested in any legitimate venture. Instead, the Dodges used the stolen funds to indulge in personal luxuries, including a hot tub and a diamond ring. David Dodge received a harsher sentence of 34 months in prison on May 29, 2024. Both were ordered to pay restitution totaling $219,323.34. Special Agent-in-Charge Michael Carpenter of the Treasury Inspector General for Tax Administration (TIGTA) highlighted the agency’s commitment to investigating such abuses of IRS systems.

This case underscores the widespread fraud that plagued pandemic relief programs. The CARES Act, designed to provide vital assistance during a time of crisis, became a target for criminals like the Dodges. TIGTA and the U.S. Attorney’s Office are continuing to pursue those who exploited the system, ensuring that those who stole from taxpayers face the consequences of their actions. This sentencing serves as a stark warning: defrauding federal programs will result in federal prison time.