Damian R. Raby, Multimillion-Dollar Scheme to Defraud COVID-19 Employee Retention Credit Program, Louisiana 2023

Damian R. Raby, a 41-year-old man from Gonzales, Louisiana, has been accused of orchestrating a multimillion-dollar scheme to defraud the COVID-19 Employee Retention Credit program. According to the Bill of Information filed by the United States Attorney Ronald C. Gathe, Jr., Raby devised a scheme to defraud the Internal Revenue Service (IRS) by preparing and filing tax forms fraudulently claiming Employee Retention Credit (ERC) tax credits on behalf of numerous businesses.

The Bill alleges that between August 2022 and April 2023, Raby filed fraudulent applications on behalf of dozens of businesses, causing the IRS to issue more than 30 checks totaling approximately $4.4 million. Raby would file documents with the IRS asking for Employer Identification Numbers (EINs) to be assigned to the fraudulent businesses, open bank accounts in their names, and file tax forms with false information about the businesses’ number of employees and payroll amounts.

As part of the scheme, Raby would use the proceeds to make large payments on luxury vehicles, the mortgage of his personal residence, and numerous other large purchases. The Bill also alleges that after Raby became aware of a pending investigation into his conduct, he obstructed and impeded the investigation by making false statements to an IRS agent, sending fictitious documents to the IRS, and encouraging one of the witnesses to provide false information to the IRS.

The matter was investigated by the Internal Revenue Service – Criminal Investigation, and the United States Treasury Inspector General for Tax Administration, with valuable assistance from the East Baton Rouge Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Alan A. Stevens and J. Brad Casey.

Raby is charged with conspiracy to launder money and obstructing the administration of the internal revenue laws. A Bill of Information is an accusation, and Raby is presumed innocent until and unless adjudicated guilty.

The COVID-19 Employee Retention Credit program was a new tax credit provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, intended to encourage businesses to keep employees on their payroll during the pandemic. Raby’s actions allegedly exploited this program for his personal gain.

Damian R. Raby, 41, of Gonzales, Louisiana, was not available for comment. The case is ongoing, and Raby’s current status is unknown.

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