Keith Hayes, Tax Evasion and Youth Counseling Services Scam, Georgi…

Keith Hayes, 46, of Decatur, Georgia, pleaded guilty today to orchestrating a $480,875 fraud scheme that exploited at-risk youth in Hopewell, Virginia, while dodging more than $169,000 in federal income taxes. The man behind the shell company “A World of Possibilities” (WOP) admitted to billing the city for counseling services never rendered, all while funneling money through a corrupt relationship inside city government.

Court documents reveal Hayes formed WOP in October 2011, claiming it would provide mentoring and counseling to vulnerable students in Hopewell City Public Schools. But there was one problem: WOP never hired a single counselor and delivered zero services. Despite that, Hayes submitted invoices and collected payments from the city for nearly four years—raking in $480,875 between November 2011 and June 2015 under contracts approved by a city official with whom he had a close personal relationship.

That official, identified only as Co-Conspirator One, served as the city’s Comprehensive Services Act (CSA) Coordinator—the very person tasked with selecting legitimate service providers for at-risk youth. Instead, they funneled city funds to Hayes’ empty operation, greenlighting payments for ghost services while real kids were left without support. The betrayal of public trust runs deep in a community where resources are already stretched thin.

While stealing from the city, Hayes was also stealing from the federal government. Between 2011 and 2015, he took in over $588,000 in income and paid nothing in personal income taxes. His total tax evasion liability now exceeds $169,000. Investigators with the IRS-Criminal Investigation called it a deliberate, years-long effort to hide earnings from authorities while living off public funds meant for child welfare.

Hayes pleaded guilty to mail fraud and tax evasion in U.S. District Court for the Eastern District of Virginia. U.S. District Judge M. Hannah Lauck accepted the plea. He now faces a maximum of 20 years in prison when sentenced on August 13. While federal sentences often fall below the statutory maximum, prosecutors and investigators made clear: this was not a paperwork error—it was a calculated scam.

The case was announced by Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, FBI Richmond Special Agent in Charge Adam S. Lee, and IRS-CI Special Agent in Charge Kimberly Lappin. Assistant U.S. Attorney Thomas A. Garnett is prosecuting. Court records, including Case No. 3:17-cr-154, are available via PACER and the Eastern District of Virginia’s public docket.