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Hampton Roads Duo Criminally Charged in Tax Refund Scheme
NEWPORT NEWS, Va. – In a shocking revelation, Kendra Michelle Eley, 36, of Norfolk, has taken a plea deal for her involvement in a refund scheme involving pandemic relief tax credits.
According to court documents, between October 11, 2022, and May 24, 2023, Eley filed eight Forms 941, Employer’s Quarterly Federal Tax Returns, for Kreative Designs by Kendra, LLC, (KDK) using the Employer Identification Number assigned to Kendra Cleans Maid Service.
Eley falsely reported wages paid and federal tax withholdings for eighteen purported employees on each of the forms, knowing there were no such employees. For the four forms filed for 2021, Eley claimed false Sick and Family Leave Credits and Employee Retention Credit (ERC) through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, totaling approximately $713,000 and $252,000 respectively, with total refunds claimed of over $900,000.
The scheme led to the IRS issuing two U.S. Treasury refund checks made payable to ‘‘Kendra M. Eley, Kendra Cleans Maid Services” totaling $649,050 on December 9, 2022, and December 13, 2022.
Eley and her accomplice, Rejohn Isaiah Whitehead, 28, of Portsmouth, opened a business checking account in the name of Kendra Cleans Maid Services LLC (KCMS) on December 23, 2022. Eley funded the account by depositing one of the refund checks in the amount of $389,640. On January 9, 2023, Eley wrote Whitehead a check from the KCMS account for $20,000. Eley wrote Whitehead another check from the account for $40,000 on January 21, 2023.
Whitehead pled guilty to engaging in monetary transactions in criminally derived property on February 13. He is scheduled to be sentenced on June 26 and faces up to 10 years in prison.
Eley pled guilty today to one count each of false claims and engaging in monetary transactions in criminally derived property. She is scheduled to be sentenced on July 9 and faces up to 10 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Key Facts
- State: Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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